Bitcoin Forum

So the Federal Government of Nigeria is Partnering with the Biggest Crypto Exchange in the world Binance along with Talent City in establishing virtual free zone in West Africa.
Nigerian FG to partner Binance (http://nairametrics.com/2022/09/03/fg-to-partner-binance-talent-city-in-establishing-virtual-free-zone-in-west-africa/)

We know that sometime on January 12, 2021, the Central Bank of Nigeria (CBN) sent a letter to banks and other financial institutions about the ban on the trading and enabling of payment for cryptocurrencies through all the Banks. (http://mondaq.com/nigeria/fin-tech/1136298/cryptocurrency-regulation-in-nigeria-addressing-the-regulatory-challenges-of-cryptocurrency-in-nigeria#:~:text=While%20banks%20and%20other%20financial,illegal%2C%20but%20it%20is%20unregulated.&text=CBN%20states%20that%20the%20anonymity,money%20laundering%20and%20terrorism%20funding.)

They (CBN) also directed all banks and other financial institutions to identify and cancel the accounts of individuals or businesses that deal in cryptocurrencies or run cryptocurrency exchanges which as we know some Banks did (https://www.cbn.gov.ng/Out/2021/CCD/Letter%20on%20Crypto.pdf)


We also know that the CBN Imposes N800m Fine On some Banks For Crypto Transactions (Stanbic IBTC Bank, Access Bank Plc, and United Bank for Africa are among the banks affected (https://dailytrust.com/cbn-fines-access-uba-stanbic-n800m-for-crypto-transactions)

So with all this hatred of Cryptocurrency in the past why is the Government now seeing a different light in Partnering with a Cryptocurrency Heavyweight like Binance? are they waking up from their slumber or is this just proof of what we have been saying all along, If not for their own selfish interest they wouldn't do it for the people. However, let us hope at the end of the day, this will bring positive news for Cryptocurrency adoption in the country.

What's your take?

We don't know what is hidden behind the partnering by the federal government. Nigeria is a big market and has got the highest level of adoption and usage amidst the restrictions from the government. The government is found much interested in promoting the country's own CBDC eNaira.

On the other side Binance made touring around the African countries to create awareness about cryptocurrencies. Maybe that could've got more attention of people and Nigerian government might've decided to make it the financial hub for cryptocurrency related activities among the African nations.

Binance to launch Africa crypto awareness tour as adoption ramps up (https://cointelegraph.com/news/binance-to-launch-africa-crypto-awareness-tour-as-adoption-ramps-up)

I think, Nigeria government came to discovered that many countries that embraced such opportunity in their land are seriously doing well, which is the best thing for any government that have positive interest on their citizens will do for the favour of the people. If the government can make it reality to partner with binance in the country, I think it will really help the Nigerian government to reduce unemployment and improve their economy that is nearly to collapse in the country.  It will also improve the crypto users in the country because many people are looking for this opportunity to come so that they will have fully access to crypto investment and to use it to improve their businesses in the communities.

I saw ineffectiveness about their banks ban in the past, and finally gradually opened the gap. Another reason I think this is to regain the political trust of the government after oppressing their citizens.
And keep in mind, this country has high statistics (https://bitcointalk.org/index.php?topic=5411414.0) in the case of corruption. Hope finally, by opening the "virtual free zone" does not also open up opportunities for their corrupt political games even greater, however this will attract the attention of crypto business people from outside.

The Nigerian government seems very confused. The CBN seems to be standing its ground on the ban but the Security and Exchange Commission is beginning to be dynamic and flexible towards cryptocurrencies. The government is beginning to see how much it can gain from the crypto space. The Nigerian economy currently is in a big mess. The majority of its income from the sale of crude currently goes into debt servicing and the government must borrow to fund recurrent expenditure and petrol subsidy.

The government is in dire need of any form of investment that would attract revenue. The CBN governor seems to be an archaic economist that is still tied to the apron of some Western and Chinese banks. Sometimes I don't blame Nigerian officials for their anti-Bitcoin policies because most countries that give them loans are against Bitcoin.
 

There is no form of publicity or promotion of the eNaira that would make it gain general acceptance or adoption. It is pegged to the naira and this currency has lost almost 35% to 50% of its value in recent times, and it is on record that unlike Bitcoin the naira never recovers its lost ground. Nigerians are smart people; hence they prefer to use Bitcoin as a hedge against inflation.  The hidden agenda might be that the Nigerian government wants to attract investors which would increase their tax revenue.


The election is next year and the ruling party is really desperate to retain power. These few months they would do everything possible to gain the trust and confidence of the people of Nigeria. They might be looking for some political and economic points to score. They know that the youths are now the highest eligible voters, hence they might be targeting to make policies to please the young population. 

Right from onset the ban of cryptocurrency and lunching of ENaira was an hypocritical move by the Government of Nigeria. They actually thought people will move there, but can just compete with a thing of the future (cryptocurrency). Also this partnership with Binance seems just like they want to win the heart of the youths to there side. Although it's a good thing I just hope they don't go back after Election is over

If this news is to be true, let it not be trusted. Nigerian citizens need to be careful with this kind of news. It is not a good development to accept or succumb to. The Nigerian government have never been in support of crypto. They lock any account that has a connection with crypto, even accounts that got registered in Binance if someone reports the account. They have informants in Binance. How can they wake up unannounced and decide to partner with Binance without having negative agendas? There is something more to this, Nigerian youths should be alerted and be careful with this kinda development.

Honestly you are on point, any reported crypto related transactions in any individual bank account is ultimately frozen especially P2P transactions, after the Central Bank had issued warnings on the ban of cryptocurrencies, I don't understand how and why the Federal government that had not supported crypto getting to partner Binance now, or probably the government officials don't know that Binance is a crypto exchange institution,, until the government issue a statement allowing the use of cryptocurrencies before people will start to take them very serious else crypto enthusiast in Nigeria will continue using cryptos anonymously.

That is the most important factor to consider; the Nigerian government may have made the deal for their own selfish reasons in order to win the hearts and support of the youths in the upcoming election. We just hope that after the election, they do not impose additional restrictions or increase the ban. And, if the Nigerian government does enter into such a partnership with Binance, it will be a very good idea because Binance is the world's leading exchange, and Nigerians use it.

I have mixed feelings about this development and I’m led to believe other people would feel same way. For a government that placed a ban and sanction on anyone trading crypto to now turn around to partner with binance after their initial vehement disagreement? It’s truly questionable. We can only hope it’s going to be a positive move and for the greater good of the citizens.

This could be the only reason why they are doing this because the government of Nigeria that I know can not make a sudden U-turn to welcome what they ban and stood against for a long time now without having something else at the back of their mind or something they stand to gain for it. Election in Nigeria is coming up and political campaigns have started I believe the current administration led by the All Progressive Party (APC) and president Mohammed Buhari want to deceive the youths who are clamoring for a better government with this update so that they can repeat the mistake of supporting their candidate in the forthcoming election once they achieve their aim, they will not only frustrate her citizens but crypto believers will be attacked and their accounts will be freezed. I will never believe the Nigerian government again in anything they say.

I equally saw the news in early hours of today, seem CZ has been in talks with Federal Government of Nigeria over their stake on cryptocurrency, The recent trading records shows that Nigeria Binance P2P trading volume has risen to 1 Billion dollar in its transactions and this could be why CZ is doing everything to get the Federal Government of Nigeria attention to see if they could change their decision and view of cryptocurrency transactions, Because Nigeria with over two hundred million in its population is a huge market for him and the crypto space. Anyways, we are still watching how this news will impact the people of Nigeria in their urge to get more involved with Bitcoin and Cryptocurrency activities.

This is quite funny to me. I say so because it seems Nigeria likes to be tagged the "first-in-this" which in itself isn't bad but in some cases, makes no sense to me just like the Enaira. According to the news (https://cointelegraph.com/news/nigeria-binance-in-early-stage-talks-for-crypto-friendly-economic-zone), NEPZA managing director Adesoji Adesugba said the proposed zone will be a first in West Africa and act similar to Dubai’s virtual zones, which are designed to provide crypto-friendly laws, regulations and tax incentives for crypto businesses. That's how they jumped in with eNaira to be the first African (https://restofworld.org/2021/the-inside-story-of-nigerias-shaky-launch-of-africas-first-e-currency/#:~:text=On%20October%2025%2C%20Nigeria%20became,in%20the%20continent's%20largest%20economy.) nation with a CBDC which in my opinion is not a successful project due to a lack of planning. Now they have come up with one. Well, in the next couple of days, I await to see what the Apex bank and Parliament will say about this.

First, the government is confused and doesn't know what it wants.
Do you know how many fintech whose accts have been frozen by the CBN because they are dealing with cryptocurrency, not to mention accts of individual that has also been frozen because they where used for trading cryptocurrency.
Now, they have suddenly decided to partner with Binance to create a crypto city. This is hypocritical if you ask me.

What a U turn? NCB was one of the central banks who had officially banned crypto currency from circulating in their economy. So it's quite surprising to see Binance signing contract with a government agency. I am not sure what's the motive of the Nigerian government behind this, but it's super surprising!

Hopefully this way Nigeria will become friendly towards cryptos in the coming future once they see the benefits of it.

Well that's Government, they have their own emotional ups and downs. Lolz. Sometimes they are happy and sometimes they are crazy as fuck. Seriously its not just this government but any of them around the globe. They will only accept some systems when they are not able to handle it in the "way they want". I mean it's better to accept it rather than be a laughing topic among the voters isnt it? So they just go ahead and accept it as if they own it and try to make peeps happy for the election purpose.

Anyways, I am putting up such speech and not being happy about its decision because of their so called fluctuating minds and decision making abilities. If they would have accepted it then just imagine how far they would have been by now.

Everything is politics to those old politicians hence am not surprised, 2023 election is around the corner and the ruling party is doing everything possible to catch the attention of the Nigerian youths that constitute the majority (ready to send the old system back to the holes).
After their show of shame display ban on crypto and all accounts that interact with crypto they are now willing to partner with the same binance they ban, what a sudden 360 turn.
If they have any little brain upstairs they will know that doing this won't change the mind of the masses, it is too late to want to rectify all the damage they caused.  :-\

I will say this will be a win-win situation. Both parties looking for their benefits. Nigeria want includes their banks in p2p exchange, so citizens could use bank and Binance to cash out their crypto. On the other hand, the government could trace Binance users who dealing with p2p. However, this is a positive move for the crypto industry. We shouldn't underestimate Nigeria. There are a lot of crypto users, and Binance also will get more users from there.

well as an african i can imagine that the government of nigeria has already realized that cryptocurrencies are being accepted in every market in the world so they must have seen that it doesn't make much sense to ban cryptocurrencies when they can release and create means to control the activities of the people to prevent crimes, that's why they should be partnering with binance, because with that they can let people use cryptocurrencies but the government can be able to collect tax and still have control over people's activities so that crimes of money laundry. One of the biggest problems of African governments is that they don't think before they act, they always think with emotions, mainly because they think they are going to lose the power they have. Africa does not have democracy and freedom because of the bad thinking of these corrupt political parties that have been ruling for over 35 years


I agree and everything gets worse because young Africans don't have a brain and they keep thinking that they have no alternative and that for that reason they have to continue to choose the same political party that has been in power for more than 35 years

There is very little information about the details of the partnership and no conclusions can be drawn yet. One thing is certain at this time; the Nigerian government has not reneged on their restrictions of crypto transactions through Banks and have not displayed any friendliness towards cryptocurrencies.

The report from the NEPZA (which is the agency discussing a partnership with binance) does not indicate anything, besides a shallow worded interest in promoting a flourishing blockchain and digital economy.

This could be an attempt to whitewash the public image of the FG or a way to slip in the eNaira (CBDC), which has not been a crowd favorite, for obvious reasons

Really, this is very good news for Nigeria. Other African governments will be compelled to follow the same path and accept cryptocurrency as a result of the Nigerian government's action. The adoption of cryptocurrency is progressing, and many people are getting familiar with it and accepting its goals. I simply hope that this action is in the citizen’s best interests and not for any other cruel benefit.

There is no news on the cooperation from the side of the government aside from the statement from NEPZA which is not a conclusion on the stance of the government on cryptocurrency in Nigeria and to many bitcoin/cryptocurrency fans in Nigeria, this is an attempt by the government or its agency to fine mean to tax crypto traders on binance and other centralized exchanges Used by Nigerian for trading. In my observation of the situation a lot seems not to be right with this development and I also see it as an attempt to brainwash Bitcoin traders and other digital assets traders within Nigeria into paying taxes on their crypto deals and if you have noticed in recent time, the present APC administration is bent on taxing Nigerian on almost every income as we can already see a reflection of that on the newly introduced stamp duties which is already taking a toll on peer to peer trading on binance as every trade and transaction involving the Nigeria naira using electronics bank transfer of #50 charges on every 10k naira and above transaction. On the enaira issue I don't think this move will have any positive impact on the adoption of the enaira by the general public most especially cryptocurrency fans who already know that enaira is not a cryptocurrency but just a digital form of the naira which have same feature and add nothing new to blockchain innovation in the country, I will be waiting to read more on this development and to see official announcement from Binance as the exchange will give more details of this cooperation between them and the Nigeria government.

The ban was in response to the 2020 protest of endsar that people were alleged to be contributing financially to the youth protest against police brutality. It coincide with ban on twitter. Government did not announce the relaxation of ban on exchanges, we just noticed that the banks are no more strict with transactions that involve cryptocurrency and the monitoring of transaction, however, Binance and other fiat to crypto had already adopted P2p transaction that was not reverted till date. I just hope Binance wont sell us to the country with new agreements.

I know the Nigerian government to always act in their own selfish interest, the government is probably seeing this as a means to make skim money. I cannot be excited about this partnership when the central bank of Nigeria has not refuted her stand on freezing bank accounts that are used for p2p transactions.

Certainly not far from what I am thinking that there could be a hidden agenda you know. There is actually more to this than we already know. I mean, what do they mean by a "Virtual Freezone"? Can someone explain it better to me please because, I don't get it.

The Nigerian federal government in its CBN have an anti crypto nature and have done much to ensure cryptocurrency is dragged to the mud despite massive adoption by its citizens but the corrupt practices in there ranks have left most digital inclinded citizens to choose cryptocurrency everytime.

I think Binance is being too much in there involvements with the FG of Nigeria and could mean danger for Nigerian Cryptocurrency traders. Not so long ago, they started accepting NIN, a Nigerian document for KYC and now, they are partnering with the government.
How long will it take before they start leaking your details and transactions to the government?

I don't see anything good in this partnership until they come out clean. There could be more to this than the are ready to tell or we actually know.

I read through just about all posts here and I truly see the concern of most which are what we are scared of because this Government as we know them has not been fort coming with true Information with her citizens and this might just be one of those ways they try to get at them again, however, why would Binance do that? not that they can't if they want to, but why would they? they would understand that this will cause a lack of trust across other location that uses the Exchange and not just the Nigerians and it would be bad for Binance so I still have my reservations with regard to that because of their touring around the African countries to create awareness about cryptocurrencies.

Binance to launch Africa crypto awareness tour as adoption ramps up (http://cointelegraph.com/news/binance-to-launch-africa-crypto-awareness-tour-as-adoption-ramps-up)  

So I am thinking they are willing to do this if it is actually confirmed because they actually want to tap into this market fully.
We do understand that when it comes to Nigeria, Binance has sponsured or partners with some orginazations activities.

Binance unveils collaboration with Big Brother Naija Stars (http://techeconomy.ng/2021/11/binance-unveils-collaboration-with-big-brother-naija-stars-whitemoney-pere-and-cross/)

Binance Takes Blockchain Education To Northern Nigeria, In Collaboration With Edubox Global (http://binance.com/en-NG/blog/all/binance-takes-blockchain-education-to-northern-nigeria-in-collaboration-with-edubox-global-1670880687992979182)

https://i.imgur.com/NjZ9kz3.jpg (http://binance.com/en-NG/blog/all/binance-becomes-official-sponsor-of-nigerian-idol-season-7-421499824684903419)

Nigeria are also planning to create a virtual free zone focusing on blockchain like Dubai's virtual free zone on discussion with binance . Now, They are understanding the value of blockchain and cryptocurrency. Earlier, banks of Nigeria refused to regulate payment of cryptocurrency to the banking ecosystem but after some times Nigeria's people transferred payment through P2P method so bank of Nigeria have decided to accept payment in cryptocurrency and we know Nigeria's people are tech-loving people that's he understand what is the future and power of cryptocurrency.

I certainly think the Nigerian government is a very nice decision. He has a very good knowledge and love for Cryptocurrencies which is why he has recognized and approved an exchange platform like Binance in his country.But I think if he partnered with Binance then unemployment number of people in his country will be reduced a lot And the economy will prosper. I extend my best wishes and congratulations to her for taking her beautiful decision.

Well, it is not officially announced yet about this development and I have been looking for more information about this development even on Twitter to see if binance will announce the cooperation with the Nigerian government for a cryptocurrency-free zone, there is no further news on this development may be in the coming days more plans and Blueprint will be made public and am more interested to see how the Nigeria government intend to merge a ban on crypto bank transaction with operating a cryptocurrency exchange free zone. This will reduce the unemployment rate as many youths will take advantage of this to involve in more innovative work on the blockchain and also trade on binance that will make them sell employed.

I have heard experience when government collaborates with exchanges. For a government to agree or propose such a collaboration with Binance is a good news for crypto lovers in the country. But everything has it's disadvantages, if exchanges are too friendly with the governments, know that your identity, your data, your privacy and in all your funds are very much at stake. You could also be over tasked anytime or have your accounts frozen. Let us believe it will not get to such for Nigerias.

This will increase the number of crypto users in Nigeria. this is good news. although of course we do not know what the reasons behind the government's interests. but at least this is expected to have a positive impact in the future. different from Nigeria. In India crypto taxes have gone up drastically. the government there has really made it difficult for crypto traders because the tax to be paid is around 30% on the profits from the crypto transaction itself. it is very burdensome for users there. so that the volume of crypto trading there had experienced a drastic decline. crypto users are getting depressed in india. I don't know why the Indian government increased the crypto tax rate. but it looks like crypto users there won't run out of their minds either. and P2P has become widely used.

In the part of Nigerian government,  I don't see their sudden interest to partner with binance as genuine but as a convenient way to propagate their political campaign, everything they do at the moment is geared towards the upcoming elections, they seek to score a point with the Nigerian masses after such a terrible administrative experience they currently going through.

Binance like every other business have been relentless with their efforts to reach as many countries as possible, partner with the government or none governmental organisations to spread crypto awareness. Right now, the Nigerian government realise they can't stop the movement no matter how hard they try. Time is up for them.

I totally agree with you and that is why it is difficult to come to terms that what the Government is about to do with engaging in this move with Binance IF it actually happens is out of the good of the technology and has no hidden agenda as you have pointed out. True it is coming to another election in 2023 and the present Government has seen the mass movement of the youths and where they stand in the upcoming election so thinking they are doing this for selfish interest couldn't be far from the truth.

If you truly know and understand what the Nigeria government feels about crypto since during the #ENDSARS movement by youths in the country back in 2020 then you would know that the government doesn't have any love for crypto as you have mentioned however I do agree that they know crypto because, during the EndSars, that was a way out for the protest so they know what it means to financial freedom so as some have already mentioned here, Even if this is signed eventually, it wouldn't be because they were so concerned about unemployment.