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Dr. Emomotimi Agama was appointed as the Director General of the Securities and Exchange Commission (SEC) in April 2024. Soon after assuming power, he advocated for a new cryptocurrency measure that aimed to remove the naira as a currency pair from cryptocurrency peer-to-peer platforms.
The Nigerian federal government is delisting Naira from all peer-to-peer crypto platforms. The government is supporting the move as it makes efforts to tackle exchange rate manipulators and dollar racketeers.
The Federal Government, through the Securities and Exchange Commission (SEC), has initiated steps to delist the Nigerian naira from peer-to-peer cryptocurrency trading platforms to combat currency manipulation. Announced by SEC Director-General Emomotimi Agama during a blockchain
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The news of delisting came against the backdrop of the recent movements of the federal government to regulate Nigeria’s crypto market. The Nigerian crypto market was valued at $57 Billion.
Delisting Of Naira
On Monday, May 6, in a meeting with the members of the Nigerian blockchain industry, the newly appointed Director-General of the Commission, Emomotimi Agama, disclosed the government’s latest plan to make changes in the crypto industry.
The Blockchain Industry Coordinating Committee of Nigeria organized the meeting to discuss the future outlook and plans for the blockchain industry in Nigeria.
In the meeting, the Director General confirmed that the government was drafting a new set of regulations to govern the crypto sector. The operators in the crypto space have allegedly used the P2P platforms to manipulate the Naira and the exchange rate.
Dr. Emomotimi Agama told the members of the local community, “That is one of the things that must be done to save this space: the delisting of the naira from the P2P platforms to avoid the level of manipulation that is currently happening. I want your cooperation in dealing with this as we roll out regulations in the coming days.
The Federal government and the SEC have collectively decided to ban Naira. This step aims to stabilize the national currency amid concerns over exchange rate volatility linked to crypto transactions. It is targeted at building a robust framework for Nigeria’s crypto market.
Timing And The Background Of The Announcement
The announcement was made just a week ago. The Central Bank of Nigeria had instructed payment service banks to warn their customers against participating in crypto transactions with Naira.
Both of these decisions by the government are considered complementary. These decisions represent a movement towards a reduction of crypto transactions in the country involving its banking system and currency.
There are several local exchanges in Nigeria, including OKX and Bitbarter, that are affiliated with the Blockchain Technology Association of Nigeria. This association has already prohibited Naira’s services in solidarity with the government.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
