Nigeria to Remove Naira from Crypto P2P Space to Prevent Manipulation

Nigeria’s Plan to Delist Naira from P2P Platforms

The Federal Government of Nigeria, through the country’s regulator, is considering delisting the naira from all peer-to-peer (P2P) platforms. This move is aimed at addressing concerns of manipulation and ensuring a stable crypto environment.

Regulatory Measures

Nigeria’s SEC Director General Emomotimi Agama stated that the delisting would be implemented in the coming days. The new rules are set to cover crypto exchanges and custodians to prevent the current level of manipulation in the market.

Industry Collaboration

During a meeting with the Nigerian Blockchain Industry, Agama emphasized the importance of collaboration to uphold the integrity of the crypto environment globally. Market players have been manipulating the value of naira, prompting the regulator to take action.

Policy Reversals

In 2021, the Central Bank of Nigeria imposed restrictions on banks and financial institutions regarding crypto service providers. However, in December 2023, the ban was lifted by the country’s SEC, signaling a shift in regulatory stance.

Concerns Over Binance

In February 2024, concerns arose over the activities of Binance, the largest crypto exchange, which removed naira from its P2P platform. Nigerian authorities alleged that Binance’s actions contributed to the devaluation of the naira.

Combatting Manipulation

Agama highlighted the need to address manipulation and activities undermining the value of naira, emphasizing the collective responsibility to maintain a stable exchange rate. The warning follows the ban on Binance due to accusations of facilitating illicit transactions.

Regulatory Directives

Last month, the Central Bank of Nigeria directed fintech firms like Moniepoint and OPay to restrict new account openings as part of efforts to combat fraud in the financial sector.