Key Highlights
- House of Reps urges security agencies not to label young Nigerians in crypto as fraudsters.
- Lawmakers call for collaboration between regulators and the inclusion of women in digital policy.
- The committee plans to create Nigeria’s first full legal and regulatory framework for cryptocurrency.
The Nigerian House of Representatives has urged security agencies to stop labeling young Nigerians involved in cryptocurrency and blockchain activities as internet fraudsters.
The call came on Monday during a public hearing held by the Ad-Hoc Committee on the Economic, Regulatory and Security Implications of Cryptocurrency Adoption and Point-of-Sale (PoS) Operations at the National Assembly Complex in Abuja.
The session, chaired by Olufemi Bamisile, brought together lawmakers, regulators, fintech operators, blockchain associations, and crypto exchange leaders to discuss how to regulate digital finance without stifling innovation, according to local reports.
Bamisile said the committee’s aim was not to clamp down on technology but to guide the government in creating effective laws. “Our goal is to create a framework that supports innovation without compromising security or financial integrity,” he stated.
He warned against “misplaced aggression” by some agencies, particularly the Economic and Financial Crimes Commission (EFCC) and the Nigeria Financial Intelligence Unit (NFIU), saying that not every young person with a laptop and crypto wallet is a fraudster. He urged security agencies to build technical knowledge of blockchain operations to avoid harassing innocent innovators.
Lawmakers call for collaboration and inclusion
Other lawmakers, including Kama Nkemkama and Akinosi Gboyega, agreed with Bamisile’s statement. They said the meeting was a chance to bring law enforcement and technology experts together to plan how the country can move forward in the digital economy.
Many called the hearing a historic moment because it was the first time the National Assembly had held such a broad discussion with verified crypto operators.
Furthermore, Mawahin Adams, co-founder of Nigeria Women Bitcoiners, called on the government to include women’s voices in digital policy. She proposed a National Digital Asset Literacy and Inclusion Programme and suggested allocating a small percentage of crypto regulatory fees to fund education and awareness projects.
Balancing regulation, taxes, and technology
Lawmakers also discussed balancing regulation with taxation and proposed that there must be collaboration between the Central Bank of Nigeria (CBN) and other regulatory bodies, such as the Securities Exchange Commission and the National Information Technology Development Agency.
Blockchain expert Oye Benson proposed that Nigeria build its own local regulatory tools to monitor transactions and encourage transparency.
The committee is expected to present its final report soon to help create Nigeria’s first complete legal and regulatory framework for cryptocurrency and digital finance.
Nigeria’s on-and-off history with crypto
Nigeria’s relationship with cryptocurrency has been long and dramatic, filled with curiosity, excitement, and regulatory issues. It all began in 2016, when the MMM Ponzi scheme made many Nigerians first hear about Bitcoin, the largest cryptocurrency. Although many people lost their money to the scheme, it opened their eyes to the idea of digital currency, and many, especially young Nigerians, see it as a way to make money to escape the country’s inflation.
Over the years, the naira has kept losing value, and the price of things has gone up; as a result, more youths have turned to crypto as a safe haven. Today, millions trade or invest in crypto, making the country one of the biggest crypto markets in the world.
The use of Bitcoin gained more popularity during the EndSARS protest in 2020. During the protest, the protesters who got their accounts blocked by the government were able to raise funds through Bitcoin. This event made the government more concerned as they explored the idea of regulating the space.
Government pushback and the Binance clash
In 2021, the Central Bank of Nigeria banned banks from facilitating crypto transactions due to their use in fraudulent activities such as money laundering and terrorism. But that didn’t stop the people.
Many users switched to peer-to-peer (P2P) trading, where they could buy and sell directly without using banks. According to statistics from Breet, over $1.5 billion worth of trades were recorded in some quarter as of 2021. By 2022, at least 35% of Nigerian youth, with more than half under the age of 30, were now crypto investors.
Tensions continued into 2024 when the government went after major exchanges like Binance and OKX, accusing them of perpetrating criminal activities without proper oversight. At the time, Binance was accused of tax evasion in Nigeria on four accounts that include failure to pay value-added tax and company income tax, failure to file returns for taxes due, and complicity in customers’ evasion of taxes through the platform. Two Binance executives were even detained over the matter.
Despite the crackdown, crypto has remained deeply rooted in Nigeria’s economy. With inflation high and the value of the naira still falling, many still see digital currency as a lifeline. For young Nigerians, it represents both opportunity and risk.
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