Articles

Blogs

Challenges and Perspectives on Nigeria's Crypto Regulation Amid Naira Decline

Jun 8, 2024

 Challenges and Perspectives on Nigeria's Crypto Regulation Amid Naira Decline
 Challenges and Perspectives on Nigeria's Crypto Regulation Amid Naira Decline
 Challenges and Perspectives on Nigeria's Crypto Regulation Amid Naira Decline

Due to Nigeria's rapidly declining naira and its nearly three-decade high inflation rate of 29.9%, the government has shifted its attention towards platforms offering cryptocurrency services. Some Nigerian crypto enthusiasts argue that the decision to halt naira trading on cryptocurrency exchanges could exacerbate the situation for the volatile fiat currency. Rume Ophi, Executive Secretary of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), criticized the official narrative blaming global cryptocurrency platforms for the naira's depreciation as impractical. He advocated for effective regulation of the crypto industry through frameworks introduced by the Nigerian Securities and Exchange Commission (SEC) in 2022. Meanwhile, Iwa Salami, an associate professor at the University of East London, contended in a recent opinion piece that crypto has been unfairly scapegoated for currency devaluation, proposing a balanced regulatory approach over outright bans to ensure financial stability and consumer protection.