Tinubu Government Orders Central Bank to Track Cryptocurrency Transactions in Nigeria
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Tinubu Government Orders Central Bank to Track Cryptocurrency Transactions in Nigeria |
Tinubu orders the Central Bank of Nigeria to track cryptocurrency transactions as digital payments surge, raising concerns over regulation and compliance.
Nigeria’s digital economy is entering a new phase as President Bola Tinubu has directed the Central Bank of Nigeria (CBN) and other regulatory bodies to intensify surveillance of cryptocurrency and digital payment transactions. This directive comes amid the rapid adoption of crypto and blockchain technology by Nigerians outside the traditional banking system.
Why the Tinubu Government is Monitoring Cryptocurrency Transactions
Speaking through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN), Tinubu emphasized the need to keep pace with digital finance.
He noted:
- Many Nigerians now rely on stablecoins and cryptocurrencies instead of banks.
- Digital finance, open banking, and artificial intelligence are no longer futuristic but inevitable realities.
- Stronger oversight is required to ensure economic stability while harnessing fintech growth.
This move highlights the government’s cautious approach to balancing innovation with regulatory oversight.
CBN’s Perspective on Digital Finance and Remittances
Olayemi Cardoso, Governor of the Central Bank of Nigeria, revealed that diaspora remittances could hit $1 billion monthly by 2026.
- Current remittances stand at around $600 million monthly.
- This is a sharp rise from $250 million monthly when reforms began.
- The growth underscores the impact of digital payment adoption on Nigeria’s economy.
For further insights on Nigeria’s fintech growth, visit the Central Bank of Nigeria’s official website.
Growth in Nigeria’s Banking Sector
Prof. Pius Olanrewaju, President of CIBN, highlighted the resilience of Nigeria’s financial sector:
- Since 2024, 16 listed banks have raised over ₦2.5 trillion in fresh capital.
- Net domestic credit to the private sector has surged to ₦82 trillion, fueling investments and job creation.
This reflects how traditional banking and digital finance are evolving side by side.
Binance Lawsuit: Nigeria Tightens Grip on Crypto Exchanges
Tinubu’s directive also comes against the backdrop of ongoing legal battles with Binance Holdings Limited, one of the world’s largest cryptocurrency exchanges.
- The Nigerian government has filed lawsuits demanding $79.51 billion and ₦231 million in damages for alleged economic losses.
- The Federal Inland Revenue Service (FIRS) is also seeking $2.001 billion in unpaid income taxes for 2022 and 2023.
- Binance executives Tigran Gambaryan and Nadeem Anjarwalla face charges of tax evasion, money laundering, and foreign exchange violations.
The case is being heard at the Federal High Court in Abuja, with penalties including fines, back taxes, and interest based on the CBN’s lending rate.
For context on global crypto regulations, check out CoinDesk’s cryptocurrency regulation updates.
Implications for Nigerians Using Cryptocurrency
The Nigerian government’s crackdown has several implications for individuals and businesses relying on digital currencies:
- Stricter monitoring of cryptocurrency transactions by banks and regulators.
- Potential restrictions on unregistered crypto exchanges.
- Greater emphasis on compliance, transparency, and tax obligations.
- Opportunities for innovation as Nigeria explores regulated adoption of blockchain and fintech solutions.
The Future of Cryptocurrency in Nigeria
The Tinubu government’s directive to the CBN to track cryptocurrency transactions marks a significant shift in Nigeria’s approach to digital finance. While it aims to curb financial risks, it also signals growing recognition of the transformative power of fintech.
For Nigerians, the key will be to embrace responsible cryptocurrency use, stay updated on new regulations, and leverage legitimate platforms for secure transactions.
As Nigeria strengthens its stance on crypto regulation, individuals and businesses should explore trusted resources like the Central Bank of Nigeria and reputable fintech platforms to ensure compliance.
