Connect with us

News

CBN and global instability, vulnerability of cryptocurrencies

Published

on

When in February, the Central Bank of Nigeria, CBN, directed banks and other financial institutions to cease transactions in cryptocurrencies and facilitating payment for cryptocurrency exchanges, several stakeholders raised concern about the directive.

In the memo, dated February 5, the apex bank instructed banks and other financial institutions to identify individuals or entities that transact in cryptocurrency or operate cryptocurrency exchanges and close their accounts.

The memo was sequel to an earlier 2017 warning by the CBN that cryptocurrencies were not legal tender and that investors were unprotected.

Advertisement

It explained that cryptocurrencies transaction was devoid of proper regulation and prone to financial crimes.

In spite of assurance by the CBN Governor, Mr Godwin Emefiele, that the directive was not inimical to the development of technology-driven payment system in Nigeria, many stakeholders still kicked against it.

They urged the apex bank to revisit the ban and see digital currencies as a tool for economic growth.

Advertisement

Emefiele had explained that the Nigerian payment system had evolved significantly over the past decade, boosted by reforms driven by the CBN, adding that cryptocurrency had no place in the Nigerian monetary system.

Sometime in May, the price of Bitcoin, which is the most popular cryptocurrency, fell drastically, after China imposed fresh restrictions.

China had earlier banned banks and payment firms from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.

Advertisement

Crypto-currency trading has been illegal in China since 2019 in order to curb money-laundering, but people were still able to trade in currencies such as Bitcoin online.

Mr Elon Musk, Chief Executive Officer, (CEO) of Tesla, an auto manufacturer, was also accused by stakeholders of contributing to the fall in value of cryptocurrencies.

After his electric car company invested 1.5 billion dollars in Bitcoin in February, and assuring consumers that he would accept Bitcoin as payment for Tesla cars, Musk reversed that decision, citing the environmental effects of mining new coins.

Advertisement

This further resulted in a fall in Bitcoin of more than 10 per cent. Meanwhile, other digital currencies such as Ether, which acts as the fuel for the Ethereum blockchain network, and Dogecoin also plummeted in value.

Early in the week, Bitcoin jumped past 30,000 dollars as Elon Musk said Tesla is “most likely” to start accepting it as payment again.

This instability in value, and vulnerability to policy decisions from both state and non-state actors further accentuated the high risk involved in cryptocurrency.

Advertisement

It also vindicated the idea by CBN to suspend its transactions in the Nigerian banking system.

Many countries are yet to come up with effective and efficient means of regulating the cryptocurrency space conceived to be a money laundering den and a tool for terrorists.

Due to the anonymous mode of transactions of these currencies, the world’s biggest criminal groups seem to have made them convenient and global source for laundering money.

Advertisement

Meanwhile, the CBN has assured Nigerians that it would soon create its own, more secure digital currency.

Emefiele said this while addressing journalists after the last meeting of the Monetary Policy Committee, MPC, in May.

He said that the idea of a digital currency

Advertisement

would soon become a reality in the country, and that the central bank had already set up a committee, which is working on the concept.

CBN’s Director, Information Technology Department, Mrs Rakiya Muhammed, at the end of the meeting explained that the Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of the year.

“Currently, there are two currencies, notes and coins. The CBN’s digital currency will be a third type of currency to supplement cash. Rather than carry cash about, digital currency lodges the money in a mobile phone,” she said.

Advertisement

Citing a recent report which indicated that Nigeria was at about 60 per cent in financial inclusion, she explained that the proposed CBN digital currency would enhance the inclusion drive, reduce the cost of cash management as well as enable innovations in the nation’s financial market.

The director noted that, with a target of 80 per cent at the end of the year, such a step needed to be taken to raise the percentage of the nation’s financial inclusion.

She added that a central governance structure would be set up to address all associated risks with a view to ensuring that the Nigerian public got the best technology for the digital currency.

Advertisement

Also, Director General of Securities and Exchange Commission, SEC, Lamido Yuguda, revealed that SEC was working with the CBN for a better understanding and regulation of cryptocurrencies in the country.

Analysts expressed confidence that a collaborative effort by the CBN and SEC would go a long way to deliver a safe digital currency platform in the country.

As the frailties and instability in cryptocurrency investment continue to manifest across the globe, and as more countries continue to take more stringent steps to restrict and regulate its transactions, stakeholders are commending the CBN for having the foresight to blaze the trail in identifying inherent dangers in cryptocurrency and restricting its transactions.

Advertisement

CBN’s move tallies with the thoughts of policymakers around the world, who have been considering the idea of central banks issuing their own digital currencies, called Central Bank Digital Currencies, CBDCs, and to be made available to everyone, rather than just to licensed commercial banks.

Analysts agree that a national digital currency managed on a single network could allow money to change hands almost instantly like in crypto transactions, but in a more secure business environment.

NAN/Kadiri Abdulrahman

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

NNPC Foundation Trains Over 3,000 Southwest Farmers in Climate-Smart Agriculture

Published

on

In a bid to promote food security and sustainable agricultural practices, the NNPC Foundation has successfully trained more than 3,000 farmers in the South-West geopolitical zone on climate-smart and modern farming techniques.

The training, which concluded on Friday in Ikorodu, Lagos, marked the end of the Southwest phase of the foundation’s pilot programme aimed at empowering local farmers and boosting agro-productivity.

Speaking at the closing ceremony, Managing Director of the NNPC Foundation, Mrs. Emmanuella Arukwe, described the initiative as a milestone in the lives of thousands of farmers.

Advertisement

“Today marks the formal conclusion of the first phase of a national journey that speaks to resilience, food security, and economic empowerment,” Arukwe said.
“What began as a bold decision to support small holder farmers has translated into tangible action across three geopolitical zones (South-East, South-South, and South-West) in Southern Nigeria.”

She disclosed that a total of 3,860 vulnerable farmers across 10 locations in the three regions were trained in sustainable farming practices that improve productivity and market access.

“This achievement is not just a number, but a milestone in the lives of real people and real communities. We were able to strengthen farmers’ capacity to adapt to climate change,” she added.
“Through the training, we were able to improve access to markets, promote inclusive agriculture and especially gender representation. We also trained them on enhancing food production through sustainable techniques.”

Advertisement

Arukwe noted that the programme would now move to the North-West, North-Central, and North-East zones as part of its next phase, saying the foundation is committed to supporting livelihoods nationwide.

“This is only Phase One. We will now turn our focus to the North-West, North-Central, and North-East zones. What we have achieved in the South will inform and strengthen our next steps,” she said.
“The NNPC Foundation will continue this mission, to support livelihoods, build resilience, and empower the hands that feed our families and beyond.
We have decided that most times you get a lot of requests from people asking us to give them palliatives and all kinds of things to help them.
But we think it is much better to teach people to fish than just give them fish so they can continue,” Arukwe explained.

Chairman of Ikorodu Local Government, Mr. Wasiu Adesina, while commending the initiative, urged the beneficiaries to apply the knowledge gained to boost productivity and profitability.

Advertisement

“As we all know, agriculture is the bedrock of any nation. Without agriculture, there will not be a nation, because there will be no food to eat,” Adesina stated.
“It is the farmers that produce our food, and it is important that we train our farmers with new techniques in agriculture, and that is exactly what the NNPC Foundation is doing.

“To the farmers, you have to take advantage of this training and face the farming squarely. In some great countries like the United States and the United Kingdom, farmers are the most richest people in those countries.

“This is because they make a lot of money from farming. We need to inculcate that habit in Nigeria and develop ideas in farming. Even after my tenure, I am going back to farming, so, maybe I will ask the NNPC Foundation to train me so that I also join you to be a farmer.”

Advertisement

He appealed to the foundation to provide further empowerment for the trained farmers to help them kickstart their agricultural ventures.

“If the farmers have land for farming, I believe the foundation will provide financial aid to keep their farms running,” Adesina added.

Also speaking at the event, the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, represented by the Director of Fisheries, Mrs. Osunkoya Daisi, lauded the Foundation’s efforts in bolstering the state’s food security.

Advertisement

“On behalf of the Lagos State Government, we would like to express our sincere appreciation to NNPC Foundation for training our farmers and for training all the farmers all over the country,” she said.
“Definitely, the training will help improve food production. We can see the impact of climate change effects in agriculture. I am sure farmers have been equipped with climate-smart agriculture techniques to improve production.”

The NNPC Foundation Ltd/Gte is the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company (NNPC) Limited. It was incorporated in February 2023 to manage the company’s CSR initiatives and enhance Nigeria’s socio-economic development.

Advertisement
Continue Reading

Education

NUC grants ESUT full accreditation for Law, 7 other programmes

Published

on

The National Universities Commission, (NUC), has given full accreditation to the Enugu State University of Science and Technology (ESUT), for her Law programme.

According to the Public Relations Officer of ESUT, Mr Ikechukwu Ani, this is contained in a letter addressed to the institution’s Vice Chancellor, Prof. Aloysius Okolie, on Wednesday in Enugu by the NUC.

Ani said that in the letter, the Executive Secretary of NUC, Prof. Abdullahi Ribadu said the report was contained in the result of the October/November 2024 accreditation of academic programmes in Nigerian universities.

Advertisement

Ani disclosed that other programmes in the institution accredited by the NUC include Master of Science in Business Management; Education Computer Science; Education Physics and Agricultural Engineering.

Other accredited programmes he said were Quantity Surveying; Urban and Regional Planning; and Applied Microbiology.

He said that the letter quoted Section 10 (1) of the Education National Minimum Standard and Establishment of Institutions, Act CAP E3, Laws of the Federation of Nigeria 2004 as empowering the NUC to lay down minimum academic standards for all academic programmes taught in Nigerian universities.

Advertisement

He said the session also empowers the NUC to accredit such programmes.

Continue Reading

Crime

Court remands 2 over alleged attempted murder

Published

on

Court discharges man accused of burning father’s house in Abuja

An Ikeja Magistrates’ Court, Lagos, on Wednesday, remanded two persons, Olaitan Fasasi and Kehinde Tobiloba in a correctional facility over alleged attempted murder.

Fasasi, 40, and Tobiloba, 26, whose addresses were not provided, are being charged with conspiracy, attempted murder and membership of a secret society.

The Magistrate, Mr L.A Owolabi, did not take the plea of the defendants for want of jurisdiction.

Advertisement

Owolabi directed the police to forward the case file to the Director of Public Prosecution for legal advice.

He thereafter adjourned the case until May 31 for mention.

The Prosecutor, Josephine Ikhayere, told the court that the defendants committed the offences at about 5.02p.m on Feb. 15, at Mushin, Lagos.

Advertisement

She said that Fasasi, Tobiloba and others now at large, attempted to commit murder by shooting at a resident, Alfred Ademola.

“They armed themselves with a locally made gun. They belong to Eiye Confraternity, a group proscribed by law,”, she said.

Ikhayere said that the offences contravened Sections 230(1) and 411 of the Criminal Law of Lagos State, 2012.

Advertisement

He said that the actions of the defendants also contravened Section 2(3)(a)(b)(c)(d) of the unlawful societies and Cultism Law of Lagos State Law.

Continue Reading

You May Like

Copyright © 2025 Acces News Magazine - All Right Reserved.

Verified by MonsterInsights