Nigeria’s Bitcoin P2P trading surge by 16% since CBN enforced crypto ban

Exactly a yr in the past, Nigeria’s central financial institution prohibited crypto transactions in Nigeria’s monetary ecosystem.

Even although the central financial institution has been combating fiercely in opposition to crypto transactions in its monetary ecosystem, crypto transactions are nonetheless on the rise in Africa’s largest crypto market.

Nigeria’s peer-to-peer transactions rose by 16% on an annual foundation. Nigeria’s P2P volumes on two main P2P platforms (Paxful and Localbitcoins) at present stand at $400 million, adopted by Kenya with greater than $160 million and South Africa with $117 million.

An trade of BTC utilizing peer-to-peer expertise doesn’t require a government and is between events (resembling people).

Even although peer-to-peer trading of Bitcoins takes a decentralized strategy, an rising variety of Nigerians nonetheless use their banks to settle in money whereas partaking on this type of trading.

There are about 17,000+ digital currencies world wide right this moment, most of that are referred to as altcoins. Cryptocurrency has develop into a mainstream idea, and in case you are studying this, it’s possible you already know one thing about Bitcoin.

Nigerian authorities’s reservation for crypto

  • Nigeria, nonetheless, has taken an anti-crypto stance just like many different international locations on the planet. At instances, it has even reacted proactively and harshly in opposition to digital currencies.
  • Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), insisted that the financial institution’s determination in February 2021 to not enable deposit cash banks, non-banking establishments, and different monetary establishments to facilitate cryptocurrency trading had been in one of the best pursuits of Nigerians.
  • “The Nigerian banking system shouldn’t deal with cryptocurrency transactions since cryptocurrencies would not have a spot in our financial system right now,” he stated.
  • Tukur Moddibo, the pinnacle of the Nigerian Financial Intelligence Unit (NFIU), additionally stated crypto failed essential assessments of vulnerability and dangers, noting that his company prevented a $3 million fraud involving 20 financial institution accounts.

Crypto lovers throughout the nation responded negatively to this ban with a lot backlash. In response, the Central Bank of Nigeria introduced the launch of its personal digital forex – the digital naira, popularly referred to as the eNaira, on October 25, 2021.

Even so, Nigerians are actually paying a premium to get their arms on these digital belongings, since the one authorized possibility is P2P trading as the most well-liked crypto on the planet is offered on Africa’s largest crypto market.

As a results of the directive of the Central Bank of Nigeria, younger Nigerians are notably affected as fee companions transacting within the native forex are now not keen to take care of crypto exchanges.

Recent knowledge from Nairametrics reveals that bitcoin traded at greater than 40% premium on some P2P exchanges in addition to different non-traditional channels (N580 to $1) compared with the official Nigerian trade fee.


Africa’s most populated nation will not be giving up on the Crypto market but, due to this fact, keen to pay a premium to carry and purchase Bitcoin no matter Nigeria’s central financial institution’s ban on crypto transactions by way of its monetary establishments.

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About the Author: Daniel