Cryptocurrency exchange Binance has removed the Nigerian currency, the naira, from its peer-to-peer (P2P) service. Users of Binance in Nigeria took to social media platform X to express their complaints and concerns about this development. The removal of the naira from Binance’s P2P market comes amidst claims by Nigerian authorities that the platform contributes to the devaluation of the naira.
Binance Team Takes Notable Action
Presidential advisor Bayo Onanuga stated that unless Binance is stopped from arbitrarily setting exchange rates, it could destroy Nigeria’s economy. The P2P feature allows users to trade directly with each other, without involving a third party. It became popular in Nigeria in 2021 following the government’s ban on the country’s burgeoning crypto industry during the administration of former President Muhammadu Buhari.
Due to the rapid decline of the naira and the resulting highest inflation rate in thirty years at 29.9%, the government turned its focus to platforms providing cryptocurrency services. These websites became notorious for creating an unofficial value for the naira and trading it.
Crypto users in Nigeria had previously reported difficulties accessing various cryptocurrency exchange platforms, including Binance and OctaFX. A few days later, Binance imposed a limit on the selling price of the Tether token on its P2P platform, preventing investors from selling USDT for more than 1,802 naira per USDT.
Nigeria and Cryptocurrency Exchanges
Contrary to local crypto community speculation, the exchange clarified that the price fixing was due to an automatic system pause. The Central Bank of Nigeria (CBN) expressed concerns in 2023 about suspicious fund flows through Binance Nigeria, placing Binance under increased scrutiny in the country. CBN Governor Olayemi Cardoso emphasized that in 2023, $26 billion passed through Binance from unidentified sources and users in Nigeria.
It is also reported that the office of the National Security Advisor in Abuja detained two senior Binance officials and is trying to block cryptocurrency exchanges to calm speculation about the naira.
Local crypto analysts have expressed disappointment with the government’s unfriendly stance towards cryptocurrencies in solving the country’s currency issues. A Nigerian crypto enthusiast stated on platform X that if the country continues to demonize cryptocurrencies and does not focus on production and export, its financial problems will persist.
