Nigerian Government Ban on Crypto, the P2P dilemma

[nicecrypto]

Did the Government just prove to us that we are our own enemy? I have noticed for some time now the rate at which the Nigeria p2p transaction on Binance is now looking more like a means of extortion.
Before the CBN pronounced ban on Banks crypto transactions, we were able to sell directly to our accounts and all in all transaction fee wouldn’t be more than N300 approximately $0.43 now and here comes the Ban and we all have to result to p2p and the cost of trading p2p is just outrageous.
Hypothetically, this is what you would have gotten trading 100USDT directly to your bank in the free trade days minus N300 for transaction charges.



But this is what you would get now trading the same 100USDT on p2p, N49,511 that is less N18,775.



So I am asking this question, Are we our own Enemy? Has the Government succeeded in its plan?
Even the Bank transfer the Buyer is sending to my account can’t be more than N100 charge so why the N18k+?
Is there an alternative to this or are we stock here?

Your honest Opinion Please.

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[sheenshane]

In the first place, I don't know which P2P exchange you've used and how becomes that so much fee.

I’m don’t live in the same country as you do but I’d like to give empathy and sympathy with all the things you had to go through, I couldn’t imagine myself being trapped by my own government.

On this one, I can tell that the clear motive of the government is to stop cryptocurrencies at it is a threat to them.  It might be a threat to the government's leadership, their business partner internally, and so on or so forth.  It’s just crystal that someone is being hurt because of Bitcoin and it seems like they are trying to control the numbers of the wealthy people like a crab that pulls down the rest if they're being outworked or outsmarted.

If they wanted to protect or help, it might they would give a grace period and during that time, they could have given you chance to liquidate your assets first before banning it.

If you really wanted to have Bitcoin at low fees without P2P exchange or regular exchange that required KYC, we have here in the forum Currency exchange and find a better escrow for the safe transaction.

[bekti3]

It seems that the Nigerian case does not stop with the central bank and government regulations. it turned out that they agreed that they wanted to fight in a very unrealistic way. attacked individuals with large tax arrears and a massive ban in all sectors directly related to crypto.

[BIT-BENDER]

Did the Government just prove to us that we are our own enemy? I have noticed for some time now the rate at which the Nigeria p2p transaction on Binance is now looking more like a means of extortion.
Before the CBN pronounced ban on Banks crypto transactions, we were able to sell directly to our accounts and all in all transaction fee wouldn’t be more than N300 approximately $0.43 now and here comes the Ban and we all have to result to p2p and the cost of trading p2p is just outrageous.
Hypothetically, this is what you would have gotten trading 100USDT directly to your bank in the free trade days minus N300 for transaction charges.



But this is what you would get now trading the same 100USDT on p2p, N49,511 that is less N18,775.



So I am asking this question, Are we our own Enemy? Has the Government succeeded in its plan?
Even the Bank transfer the Buyer is sending to my account can’t be more than N100 charge so why the N18k+?
Is there an alternative to this or are we stock here?

Your honest Opinion Please.

I don't think this is so true, to everyone in Nigeria, I am a Nigerian and I know about the ban and what it caused so far, first Nigerian government placing an incomplete ban as so many people would put it in to words as, was an act to show that the government don't want to project Nigeria ahead like many other countries.

Well but as for the peer2peer many has seen this as a revelation alternative to bank in the first place, some uses the binance peer2peer exchange, I use straight out peer2peer with a partner and the rate are not something to complain about, I know people who had used exchanges then directly to their banks that are finding peer2peer more flexible for them, but their is need to be cautious and intelligent.

[mersal]

Humans are the biggest enemy to humanity, they know that p2p is the only choice for Nigerian people to convert their cryptos into fiat or vice versa so they take advantage by changing the price smaller when you sell BTC to them and charge a much higher fee when you buy from them and this is how that N18+ difference before.

[Anonylz]

@op you are not far from the truth, some people will always take advantage of every situation and bend it to their benefit, actually anyone who cares to take a look at the direct exchange rate of binance and the p2p NGN will see the huge difference, the p2p guys are buying way lower than what binance is offering for NGN to Dollar, i guess you can't complain too much since half bread is better than none, having an opportunity to still trade in p2p is better than not having it at all.

[fiulpro]

What enthralled me was :
How could the government ignore the fact that bitcoins is an essential part of Nigerian people now. Honestly the most number of Bitcoins I ever sold to my friends 95% of them were from Nigeria.
There is always a probelm with the banks and transfers from there to any foreign country therefore people even used bitcoins and other cryptocurrencies for that purpose.
Why did the government ban it in the first place?
-The government thinks that the cryptocurrencies can be used to finance terrorism which I believe can be better done in cash.
-Did they forget to read the reports so as how " only 10% of these cryptocurrencies are being used for such purposes "
See, first of all I do think you can try and sell it to your friends and families, buy/sell in your own community. This fee is not only outrageous but also wrong. Try and make your own local crypto community and use wallets which are hard to track. Use samourai for instance. Best of luck.

[el kaka22]

I do not think that free market is something as good as people imagine it would be. Everyone loves to talk about how less government intervention is great, but then this happens and they are shocked about it. When people on the left say that we need more government they do not mean lets all become Chinese communist regime and take control of everything, we just mean that lets put regulations and let people do whatever they want under those guidelines. Sure you can make a case on too much government, and that's true, there should not be too much government, but there should be no government neither, look at what happened here for example and see that government is important.

So, we need to find that right balance where it is not people screwing each other over, but it is also not government screwing people neither, there needs to be a correct amount of balance.

[stompix]

In the first place, I don't know which P2P exchange you've used and how becomes that so much fee.

Right on the first line:

I have noticed for some time now the rate at which the Nigeria p2p transaction on Binance is now looking more like a means of extortion.

As for the Op's dilemma, it's normal and it's nothing new, happens with other currencies on other platforms also when there are troubles dealing cheaply with fiat.
On localbitcoins I see the price for an BTC in NGN is the equivalent of $76k. Even around me the prices area at 49-48k Euros when it's 47.2 on bitstamp.
But people have to make some profits and there you go.

Is there an alternative to this or are we stock here?

Deal directly with people in your area with whom you've traded before or try exchanging with reputable members on this forum, there are enough people from Nigeria around so you can use an escrow service and deal directly, not involving Binance anymore.

I do not think that the free market is something as good as people imagine it would be. Everyone loves to talk about how less government intervention is great, but then this happens and they are shocked about it.

Yeah, the free market is a blessing when you're not bound by rules anymore but when the completion isn't either suddenly you want protection, legislation, restrictions, and all the other stuff. And the situation here is quite ironic when the ban came everyone was saying it won't do a thing, p2p will flourish, we don't need banks, we don't need centralized services, the cold shower came. You can't eat your cake and have it too.

[Anonylz]

I do not think that free market is something as good as people imagine it would be. Everyone loves to talk about how less government intervention is great, but then this happens and they are shocked about it. When people on the left say that we need more government they do not mean lets all become Chinese communist regime and take control of everything, we just mean that lets put regulations and let people do whatever they want under those guidelines. Sure you can make a case on too much government, and that's true, there should not be too much government, but there should be no government neither, look at what happened here for example and see that government is important.

So, we need to find that right balance where it is not people screwing each other over, but it is also not government screwing people neither, there needs to be a correct amount of balance.

Exactly, having total control like what some people are craving for comes with a price, and the op's situation is part of the price people will pay if government gives total control of your money,
P2p guys are taking advantage of the situation, I bet if you ask the op, he/she would prefer the government involvement where he can directly sell to binance than the p2p where you have no choice.

[KaliLinux]

I do not think that free market is something as good as people imagine it would be. Everyone loves to talk about how less government intervention is great, but then this happens and they are shocked about it. When people on the left say that we need more government they do not mean lets all become Chinese communist regime and take control of everything, we just mean that lets put regulations and let people do whatever they want under those guidelines. Sure you can make a case on too much government, and that's true, there should not be too much government, but there should be no government neither, look at what happened here for example and see that government is important.

So, we need to find that right balance where it is not people screwing each other over, but it is also not government screwing people neither, there needs to be a correct amount of balance.

Exactly, having total control like what some people are craving for comes with a price, and the op's situation is part of the price people will pay if government gives total control of your money,
P2p guys are taking advantage of the situation, I bet if you ask the op, he/she would prefer the government involvement where he can directly sell to binance than the p2p where you have no choice.

Both of you are right and if I was in the OPs shoes I know I definitely would have preferred the Governments involvement considering the differences in the trading rate on the p2p side. I guess at the end of the day, it will be safe to say there is need for some sort of regulation as el kaka22 mentioned above to keep thing in check. 

[Coyster]

The exclusion/removal of Nigerian banks from crypto transactions by the government was always going to cause one form of inconvenience or the other, especially in the aspect of price, people want to make money, and this ban by the Nigerian government is somewhat a blessing to Nigerians who sell crypto on most exchanges as they have collectively hiked the price themselves, they know it's for some people the only alternative, so even if they know the price is outrageous, they have no choice but to buy it that way.

The thing is for you to look for a better option, but mind you that the option should also be a trusted one, just like some of the options other users have given above, but if you do not have any alternative, it's much better buying at that price, than from someone or somewhere you do not trust and losing your funds completely.

[nicecrypto]

Did the Government just prove to us that we are our own enemy? I have noticed for some time now the rate at which the Nigeria p2p transaction on Binance is now looking more like a means of extortion.
Before the CBN pronounced ban on Banks crypto transactions, we were able to sell directly to our accounts and all in all transaction fee wouldn’t be more than N300 approximately $0.43 now and here comes the Ban and we all have to result to p2p and the cost of trading p2p is just outrageous.
Hypothetically, this is what you would have gotten trading 100USDT directly to your bank in the free trade days minus N300 for transaction charges.



But this is what you would get now trading the same 100USDT on p2p, N49,511 that is less N18,775.



So I am asking this question, Are we our own Enemy? Has the Government succeeded in its plan?
Even the Bank transfer the Buyer is sending to my account can’t be more than N100 charge so why the N18k+?
Is there an alternative to this or are we stock here?

Your honest Opinion Please.

I don't think this is so true, to everyone in Nigeria, I am a Nigerian and I know about the ban and what it caused so far, first Nigerian government placing an incomplete ban as so many people would put it in to words as, was an act to show that the government don't want to project Nigeria ahead like many other countries.


My Brother, I am sorry that it came out as me saying that the Government had a Total Ban on crypto trading, we all know it was the Banks that where restricted from processing crypto related transactions which is what i meant.

Well but as for the peer2peer many has seen this as a revelation alternative to bank in the first place, some uses the binance peer2peer exchange, I use straight out peer2peer with a partner and the rate are not something to complain about, I know people who had used exchanges then directly to their banks that are finding peer2peer more flexible for them, but their is need to be cautious and intelligent.

For you it wouldn't be a problem because you know someone that you deal directly with which is OK since both of you can agree on a better rate for exchange which I also believe is way better than what is currently obtainable on the Binance p2p trades but you do understand what I am saying about what the p2p sell/buy rate is now which was not the case before Banks where stopped from Trading crypto.

Frankly my concern is the rate between directly trading to your bank before which is a flat rate of (N300) Three Hundred Naira and p2p now which is N18K+ for a 100USDT, so truly I dont know who would find in Particular,  Binance p2p more flexible, I have done both whether it is the rate or the process, before is better than now.

[Princejebs]

I think you are misunderstanding the market situation. Ever since the government ban on banks from making payments for users in Nigeria, flutterwave has no option than to seize from supporting deposits and withdrawal fro Nigerian exchanges.
I have never used p2p all this while not until the government ban around early this year but I have noticed somethings about p2p.

• They always buy and aell base on market situation, globally. If you check NGN to USD black market rate, it should be around N490/$$
• The binance dollar to naira rate is always on speculation, not actual price in Nigeria market since they are been traded base on updates and cbn move
• Those NGN on binance cannot be withdrawn, hence every one is stuck in binance since we don't have any financial institutions that can aid withdrawals and deposits.

I hope you understand the whole concept now.

[Bitstar_coin]

When there is a situation like this most things will definitely change, government banning crypto trading in Nigeria certainly opens a lot of opportunities for the p2p traders, maybe the p2p guys are buying base on the bank exchange rate, if the op can find out what is the local bank exchange rate then he can make comparison with the p2p rate, this is the best way to clear your doubt.

[goldade]

Although the government's ban on cryptocurrencies in the country created an avenue for P2P transactions to prosper, I do not believe it is the government made any regulations concerning the exchange rate.
In P2P,  the exchange is determined by the two factor involved because it is actually negotiable (although I don't know about Binance). So I think the rate was actually set by the buyer.
The thing is people tend to take undue advantage when they are different positions of power. Some believe they have the right to set any exchange rate because they are the buyer

[slapper]

It is not fee. It is because the price of USDT in your country has decreased. Moreover, the current rate of USD/NGN is 408.71 so that 100usdt is ~ 49000 NGN

Hypothetically, since the bans of the government, not many people are interested by cryptocurrency anymore. It significantly destroy the enthusiasm to dig down what cryptocurrencies are and how to be rich with it. You can continue to invest in cryptocurrency. I believe one day, they will lift the ban and once again accept bitcoin as an important asset

[tyz]

Humans are the biggest enemy to humanity, they know that p2p is the only choice for Nigerian people to convert their cryptos into fiat or vice versa so they take advantage by changing the price smaller when you sell BTC to them and charge a much higher fee when you buy from them and this is how that N18+ difference before.

Sooner or later, such measures will create a black market anyway. Then Bitcoin will be exchanged for fiat money at a market stall or in a back room without going through an online service. Such measures are completely absurd and it is only a matter of time before the Nigerian government takes them back due to ineffectiveness.

[Silberman]

Did the Government just prove to us that we are our own enemy? I have noticed for some time now the rate at which the Nigeria p2p transaction on Binance is now looking more like a means of extortion.
Before the CBN pronounced ban on Banks crypto transactions, we were able to sell directly to our accounts and all in all transaction fee wouldn’t be more than N300 approximately $0.43 now and here comes the Ban and we all have to result to p2p and the cost of trading p2p is just outrageous.
Hypothetically, this is what you would have gotten trading 100USDT directly to your bank in the free trade days minus N300 for transaction charges.



But this is what you would get now trading the same 100USDT on p2p, N49,511 that is less N18,775.



So I am asking this question, Are we our own Enemy? Has the Government succeeded in its plan?
Even the Bank transfer the Buyer is sending to my account can’t be more than N100 charge so why the N18k+?
Is there an alternative to this or are we stock here?

Your honest Opinion Please.

This is completely natural, whenever the government makes something illegal then the price of that product goes up, it does not matter what it is that is simply the way it works and bitcoin is not an exception to this rule, so your only option is that if you do not want to deal with this maybe you could open a bank account in a different country or have a friend in another country make those transactions for you, otherwise you will have to pay those outrageous prices if you want to buy bitcoin.