Emomotimi Agama, the Director General of the Nigerian Securities and Exchange Commission (SEC), reportedly revealed this plan during a virtual meeting with the country’s blockchain stakeholders today as part of a wider effort to combat the manipulation of the local currency in the foreign exchange market.

Meanwhile, local stakeholders have blamed the rise of P2P crypto trading in the country on inadequate regulation.

Nigeria is Africa’s most populous country. Its young population has propelled crypto adoption to record highs despite recent regulatory pushbacks, with Chainalysis ranking Nigeria second on its global crypto adoption index.

Nigeria’s crypto environment

The development marks a significant regulatory shift, following a more accommodating stance toward crypto during the early days of President Bola Tinubu’s administration. However, recent months have seen a reversal in the government’s stance, with authorities blaming crypto speculators for exacerbating foreign exchange market volatility.

Over the past few months, the Nigerian government has enlisted telecommunication providers to block local crypto users’ access to exchange platforms like Binance and OctaFX. The authorities have also blamed crypto exchange Binance for facilitating billions worth of trades, compounding the pressure on the Naira.

Additionally, authorities have instructed financial institutions in the country to block accounts engaged in crypto dealings and report such activities to law enforcement. Furthermore, the government ordered four fintech companies to stop onboarding new customers as part of ongoing efforts to bolster Know Your Customer (KYC) compliance.

Olumide Adesina, a financial journalist, said these moves showed that the “crypto industry faces extinction as the FG’s interest supersedes the populace interest in digital assets and the evolving technology.”

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