Minister of Information and National Orientation, Alhaji Mohammed Idris
Minister Says FG Open to Cryptocurrency, Despite $80bn Binance Lawsuit
Nigeria remains open to cryptocurrency companies, despite an $80 billion lawsuit against Binance, according to Mohammed Idris, the Minister of Information and National Orientation.
He emphasized that the government’s approach is centered on regulation rather than suppression.
The Federal Government filed the lawsuit against Binance in February, accusing the platform of causing economic losses and evading taxes.
This followed the detention of a senior Binance executive, who was later released. The legal action has raised concerns about Nigeria’s business climate, but Idris clarified that the country is not hostile to crypto firms operating within legal frameworks.
“There are other companies operating in the crypto sector in Nigeria, you don’t see them facing charges,” Idris told Semafor in an interview.
He explained that the crackdown on Binance is part of broader efforts to combat money laundering, terrorism financing, and illicit financial flows.
Nigeria ranks second globally in cryptocurrency adoption, after India, according to a Chainalysis index that accounts for population and purchasing power. Between July 2023 and June 2024, Nigeria recorded approximately $59 billion in crypto transaction value.
Cryptocurrencies are widely used in the country as a hedge against inflation and for international trade and remittances.
Chainalysis also reported that Nigeria accounts for 40 percent of stablecoin inflows in sub-Saharan Africa.
Stablecoins are cryptocurrencies pegged to the US dollar. However, regulatory uncertainty has unsettled investors, contributing to a decline in foreign direct investment (FDI). World Bank data shows that FDI inflows to Nigeria dropped to $1.6 billion in 2023, down from $8.1 billion in 2009.
Idris highlighted government initiatives aimed at improving the business environment, including visa reforms and tax policy reviews, to restore investor confidence.
“The government is working to remove bottlenecks for investors by rolling out measures to improve the ease of doing business, including a review of visa rules, tax laws, and expatriate worker quotas,” he said.
The minister denied that Binance was being blamed for the devaluation of the naira, which was influenced by factors such as the government’s decision to float the currency in 2023.
However, he acknowledged that Binance “contributed” to the currency’s decline. Idris reiterated that the charges against Binance focus on tax evasion and money laundering, not currency devaluation.
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