Top Nigerian Minister Suggests Government Should Reconsider Policies Against Cryptocurrencies

As per the minister, Nigeria’s imposition of anti-crypto regulations could lead to grim consequences in the future.

By Radhika Parashar | Updated: 13 December 2021 14:14 IST

Highlights

Nigeria is battling with economic slowdown and inflation
Crypto adoption in Nigeria and other African nations have grown
Nigerian minister has adviced the government to be open to crypto

Top Nigerian Minister Suggests Government Should Reconsider Policies Against Cryptocurrencies

Prince Clem Agba believes citizens must have a chance of using crypto tech

Photo Credit: Facebook/ Prince Clem Agba

Prince Clem Agba, a Nigerian minister of state for budget and national planning has extended his support for the budding space of cryptocurrencies before the government of Nigeria. Earlier this year, Nigeria's central bank had banned Bitcoin transactions from being facilitated by commercial lenders. Agba believes, however, that imposing anti-crypto regulations in the country could lead to grim consequences in the future. The minister's support for cryptocurrencies comes amid Nigeria's economy struggling to overcome inflation caused due to slow, COVID-riddled economic activities.

“The uncertainty in regulating cryptocurrencies risks denying government and citizens the chance to maximise opportunities from the technology,” a Bloomberg report quoted Agba as saying.

The African Development Bank Group (ADBG), in a recent study had revealed that the Nigerian economy entered into recession in 2020 due to a fall in crude oil prices on account of falling global demand and containment measures against Coronavirus.

PM Modi Says Cryptocurrency Should Be Used to Boost Democracy

The inflation rate also rose to 12.8 percent in 2020 from 11.4 percent in 2019.

Amid this economic chaos, the Internet-backed youth of Nigeria and other African nations began experimenting with the crypto space.

The crypto market in Nigeria, Kenya, Tanzania, and South Africa together saw 1,200 percent growth, reaching a market valuation of $105.6 billion (roughly Rs. 775 crores) in one year, a report by Chainalysis claimed in September.

Even after the Nigerian central bank ruled against legalising crypto-trading, the country did introduce its blockchain-based “central bank digital currency” (CBDC) called eNaira. Directly controlled by the Central Bank of Nigeria, the eNaira is subject to the daily transaction limits and other stratifications.

Owing to the decentralised and untraceable nature of cryptocurrencies, as well as the market volatility, several nations including India and Russia among other are refraining from legalising them.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.