Upcoming Bill Will Keep Nigeria Updated With Markets, Said Ibrahim Babangida

• 0.5% of Nigeria’s 217 million citizens are using the eNaira. 
• The Central Bank of Nigeria ordered all financial institutions to cease accounts that undertake crypto transactions in 2021. 

Recently a Nigerian media outlet Punch reported that Nigeria is planning to legalise digital currencies in the country. 

Ibrahim Babangida, the Chairman of the House of Representative Committee on Capital Market and Institution revealed that the chamber is planning to pass a bill that will allow the usage of digital currency.

The Investment and Securities Act, 2007 (Amendment) Bill when approved and signed into law will help the Securities and Exchange Commission to identify cryptocurrencies and other digital funds as capital for investment.

The proposed Amendment law will also define the regulators roles of the Central Bank of Nigeria and SEC regarding digital currency. 

Chairman Babangida believes that the upcoming Bill will keep Nigeria up to date with changing trends and development in the capital markets. And quoted that “Like I said earlier during the second reading, we need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date [with] global practices.” 

Earlier February 2021 The Central Bank of Nigeria ordered all financial institutions to cease the accounts that undertake crypto transactions. If any financial banks fail to adhere to the said rules, serious measures will be taken against them.

The Central bank published a circular in Nigeria on February 5, 2021. The circular has been published on the bank’s website. Nigeria’s SEC is closely regulating digital currency transactions. To secure the investors and protect them from frauds by maintaining transparency in the transactions.

The Chairman stated that “It is not about [the] lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria.”

If the proposed Bill gets  green signal from the responsible authorities then amendments will be made to Nigeria Investment and Securities Act 2007. 

Is Adoption of  eNaira Expanding or Shrinking?

Since the launch of the eNaira, the adoption of the digital currency is not going well, and the government noted in its report that only 0.5% of Nigeria’s 217 million citizens are using the CBDC issued by the Central Bank.    

In Africa, Nigerians have shown the most interest in crypto so far. In the continent, Nigeria has the highest crypto adoption rate, and is ranked 11th in global crypto adoption. 

Since the beginning of 2022, 27-35% of the Nigerian population between the age group of 18-60 held cryptocurrency.   

Ibrahim Babangida served as President of Nigeria from 27 August 1985 to 26 August 1993 and is in the list of longest serving Presidents of Nigeria. He served as the President for 7 Years 364 days. 

Nancy J. Allen is a crypto enthusiast and 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.

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