In a move underscoring his administration’s growing concern over Nigeria’s fast embrace of digital currencies, President Bola Tinubu has directed the Central Bank of Nigeria (CBN) and other regulatory agencies to intensify monitoring of cryptocurrency and digital payment transactions.
Speaking through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Tinubu noted that the speed at which Nigerians are shifting away from traditional banks toward cryptocurrencies and stablecoins requires urgent policy response.
“There is a digital revolution. Many people now make payments without using the banking system. They’ve turned to stablecoins and digital currencies,” Edun said. “To this end, I have directed capital market and banking authorities to get hold of this narrative and track it while it is still evolving.”
The president’s directive comes against the backdrop of Nigeria’s complicated relationship with cryptocurrency. Earlier this year, the Federal Government filed a $79.51 billion lawsuit against Binance Holdings Limited, alongside ₦231 million in damages for alleged economic losses. The Federal Inland Revenue Service (FIRS) also accused Binance of failing to pay $2.001 billion in taxes for 2022 and 2023, with additional allegations of tax evasion, money laundering, and foreign exchange violations.
Despite these legal battles, Nigeria’s digital finance space continues to expand. CBN Governor Olayemi Cardoso, at the same conference, highlighted the surge in diaspora remittances. “When we began this journey, remittances were at $250 million a month. We targeted $500 million, and today we are at $600 million. By next year, our projection is $1 billion a month,” Cardoso said, underscoring the potential benefits of regulated digital finance flows.
CIBN President, Prof. Pius Olanrewaju, reflected on the resilience of the banking sector amid the disruptions caused by fintech and digital currencies. He revealed that since 2024, 16 listed banks have raised more than ₦2.5 trillion in fresh capital to strengthen their balance sheets. Net domestic credit to the private sector has also risen above ₦82 trillion this year, signaling that traditional banks are adapting to Nigeria’s shifting financial landscape.
Expert Reflections
Financial analysts argue that the directive shows a government caught between two realities: the need to harness digital innovation and the duty to secure economic stability.
Dr. Chuka Eze, a fintech consultant, observed: “Nigeria has one of the fastest crypto adoption rates in the world. Rather than simply tightening the noose, regulators must also design policies that integrate digital assets into the mainstream financial ecosystem. That’s where the real opportunity lies.”
On the other hand, economist Bisi Ajayi warned: “Without regulation, crypto markets can become havens for illicit capital flows, undermining Nigeria’s already fragile foreign exchange stability. Tinubu’s order is timely, but execution will determine whether it protects or stifles growth.”
This flashback highlights the tension between innovation and regulation: while digital currencies and blockchain-powered payments offer Nigerians faster, cheaper, and more accessible financial options, they also challenge regulators’ ability to safeguard monetary stability, taxation, and compliance.
For the Tinubu administration, the task now lies in striking a delicate balance—embracing the opportunities of artificial intelligence, open banking, and digital tools while curbing risks of money laundering, tax evasion, and illicit capital flight.
The unanswered question remains: Will stricter regulation of cryptocurrencies stifle innovation—or will it create a safer ecosystem that unlocks Nigeria’s digital economy potential
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