Nigerian Central Bank Governor: Nothing Stops People from Trading Cryptocurrencies

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, who previously banned banks from servicing cryptocurrency exchanges, has reportedly clarified the central bank’s stance on the use of cryptocurrencies in the country.

According to local news outlet TodayNG, CBN Deputy Governor Adamu Lamtek, speaking on behalf of Emefiele, said the bank does not prohibit Nigerians from buying, trading or selling cryptocurrencies, but “protects the banking industry from cryptocurrency activities.” Lamtek made the remarks at a seminar for financial journalists and business editors in the Nigerian capital of Abuja.

“The CBN has not restricted the use of cryptocurrencies, nor have we stopped people from trading cryptocurrencies,” Emefiele said. “What we have done is to ban cryptocurrency trading in the banking sector.”

Prior to this, the CBN announced in a circular last month that it had banned all regulated financial institutions from providing services to cryptocurrency exchanges in the country. The ban requires all commercial banks to close accounts belonging to Nigerian cryptocurrency exchanges and other businesses engaged in cryptocurrency transactions, and warns that any institution that violates the regulation will be subject to "severe regulatory sanctions." Some account holders of Nigerian bank Access Bank have reported that their accounts have been closed.

Emefiele had previously called cryptocurrencies “illegal currencies” that had no place in Nigeria’s monetary system. The governor said at the time that the central bank was conducting due diligence to better understand the potential impact of the emerging market.

However, many regulators and cryptocurrency enthusiasts in Nigeria have criticized the ban. Some members of the Nigerian Senate proposed inviting the CBN Governor and major cryptocurrency stakeholders to a hearing to discuss issues related to crypto regulations in the country.

Since the CBN’s cryptocurrency ban, Bitcoin (BTC) has been trading at a premium in Nigeria. Data from crypto exchange Luno shows that BTC’s price in the United States is $57,349, while in Nigeria the premium has exceeded 70%, with the price at $97,509.