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#WeWantOurCryptoBack: Bitcoin Ban Undermines Digital Progress, Damages Public Trust

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By Joel Popoola

As Nigeria’s latest anti-corruption chief, Abdulrasheed Bawa has his work cut out.
I mean, how are the people of Nigeria supposed to trust the ruling class when the man he succeeded as head of the Economic and Financial Crimes Commission has himself been accused of pocketing the agency’s funds?

But the Nigerian government’s decision to ban bitcoin this week is likely to make greater public trust in our political system even more elusive.

Last October, the National Information Technology Development Agency published its draft National Blockchain Adoption Strategy. The strategy made a strong case for greater national adoption of blockchain technology – think of it as a secure digital ledger of transactions, often using digital money known as cryptocurrency or bitcoin, stating that the technology has the: “Potential to become a transformative force in multiple aspects of government and private sector operations. Its potential has been recognized globally, with a variety of international organisations and technology companies highlighting the benefits of its application in reducing costs of operation and compliance, as well as in improving the efficiency and security of business processes”.

This is certainly a view shared by many Nigerians overseas, who are increasingly turning to bitcoin to send money home to their families safely and swiftly, while avoiding fees and foreign exchange costs, and by Nigerians at home who see it as a safer way to save than a Naira which has been devalued twice in the past twelve months.

On February 5 however, in another classically Nigerian example of joined-up government, the Central Bank announced a ban on the exchange of cryptocurrency by financial institutions and ordered banks to close accounts trading in it.

The government has repeatedly, and often successfully, committed Nigeria to the development of our digital economy, which will be critical in replacing oil with the talent and ingenuity of our young people as Nigeria’s most important natural resource.

At a stroke, this decision threatens to undermine so much of that progress.
How does this look to our emerging digital sector – made up of the hi-tech businesses the government expects to be at the forefront of our national economic development. Business leaders in this critical economic will now be questioning whether or not the government understands their companies and their needs.

But the decision will have even more of a negative impact on public trust – in particular the trust of those same young people.

CBN explained the decision by emphasizing the need to protect Nigerians from losing their savings and to prevent cryptocurrencies being used for criminal activities.

This is important – but many Nigerians will see the decision as yet more evidence of what they see as an elderly and out-of-touch elite attempting to stifle innovation and progress they have no interest in understanding and propping up a past which no longer works.

Others will be enraged at the government arbitrarily taking away the source of their livelihoods at a time when young Nigerians are already facing an unemployment rate over 30%

Others will perceive a link between the decision and the use cryptocurrencies by some of the #EndSARS protesters when the government froze their bank accounts.

As always, the evidence for these feelings is all too easy to find online, where the lack of public or even industry consultation led immediately to the #WeWantOurCryptoBack campaign. And online is where leaders need to engage the most if they want to tackle this problem.

There are plenty of understandable reasons for the spontaneous banning of bitcoin – but our leaders have made next to no effort to explain them.

And when so many Nigerians already have such little trust in their political leaders and institutions, it is little wonder that every action being taken is seen as being motivated by the very worst of intentions.

Better public and economic stakeholder consultation by government is critical for the government to build trust, and to drive forward the digital agenda.

At the digital democracy campaign I lead, we have developed a platform to enable this; a free mobile app called Rate Your Leader.

Rate Your Leader allows electors and elected to communicate person-to-person at the touch of a button.

Direct answers to direct questions are the best way to build relationships and trust – even if you don’t agree with a decision you will respect the position the person making it is in and appreciate their commitment to communicating that decision. There is nothing to lose to simply, transparently setting out a course of action you intend to take, and the reasons for it – and everything to gain, not least in the collaborative potential of involving others in that decision to ensure it is designed in the most effective way.

I cannot emphasise enough that 72 per cent of Nigerians believe the statement “most politicians are corrupt” describes our country well – and six-in-ten say it describes Nigeria “very well.”

Our nation cannot fulfil its vast potential until we address this, and digital technology gives us the means.
Which is why the government needs to embrace it – not ban it.

Joel Popoola is a Nigerian tech entrepreneur, digital democracy campaigner and is creator of the Rate Your Leader app. Follow Joel on Twitter @JOPopoola

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Economy

My Policy on Fuel Subsidy Removal Yielding Results, Says Tinubu

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President Bola Tinubu has declared that his fuel subsidy removal policy is yielding the desired results, pointing out that prices are gradually declining.

The President also asserted that investors are increasingly showing interest in the Nigerian economy, a development he attributed to the removal of fuel subsidies, a policy introduced on 29th May 2023.

Tinubu made these remarks on Monday while inaugurating the National Youth Council at the Presidential Villa, Abuja.

Addressing the youths, Tinubu emphasised that while politicians will always be politicians, true leadership is about fostering development that benefits future generations.

He urged Nigerian youths to take advantage of the opportunities being created by the government, particularly in the ICT sector, to contribute to national development.

Tinubu said: “I have listened to you. Today is not for long speeches. I just want to reassure you that you are the hope of this country. Everything rests on your shoulders. Every decision I have taken is about you and the future.

“When we removed the fuel subsidy, we were securing a future for generations yet unborn. Where is the investment? Where is the infrastructure? When you hear many professionals say they want to ‘JAPA’, it is because prosperity is not widespread at home. If we create opportunities and empower our people, they will have no reason to leave.

“This is your country to develop, build, and prosper in. The government is fully committed to you. Take this seriously. You can criticise politicians all you want, but ultimately, politics is about development and securing a future for the next generation.

“At the beginning, it seemed uncertain, difficult, and even hopeless. It felt like drawing water from a dry well. But today, the economy is turning a corner. Prices are falling, confidence in our economy is improving, and investors are showing interest. Technology is advancing, and you have opportunities before you.”

The President reminded the youths that they have a crucial role in advancing the nation’s development.

“It is all in your hands. My role is to help navigate, push, and implement key programmes to clear the path for you. But it is up to you to seize the moment. Look me in the eye and tell me what you think—whether it is right or wrong—and offer suggestions. We will consider them as long as they contribute to the prosperity of this country.

“I assure you that we will do everything possible to make Nigeria a better place for you, but we cannot do it alone. You represent over 60 per cent of our population. You are the heartbeat of our nation, and I hope you take this opportunity very seriously,” he said.

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Economy

Naira Gains over Dollar for Three Straight Days in Parallel FX Market

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The Naira recorded three consecutive days of appreciation against the dollar in the parallel foreign exchange market, ending the week on a high note on Friday.

According to Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4, Abuja, the Naira strengthened to N1,565 per dollar on Friday, up from N1,570 on Thursday.

On a day-to-day basis, the Naira gained N5 against the dollar compared to the N1,570 traded on Thursday.

In the last three days, the Naira has gained N15 against the dollar in the black market.

In contrast, in the official market, the Naira continued to depreciate as of Thursday, according to data from the Central Bank of Nigeria.

The apex bank’s exchange rate data showed that the Naira fell to N1,507.88 per dollar on Thursday from N1,504.30 on Wednesday.

Overall, exchange rate movements across FX markets showed that the Naira ended the week with mixed sentiments of losses and gains against other foreign currencies.

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Economy

NASS Passes Tinubu’s N54.99tr 2025 Budget Proposal

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The National Assembly, on Thursday passed, the N54.99trillion 2025 Appropriation Bill.

The bill was passed separately by the Senate and the House of Representatives.

A breakdown of the budget showed N3.645trillion for statutory transfers, N14.317trillion for debt servicing, N13.64trillion for recurrent expenditure and N23.963trillion capital expenditure (development fund), with fiscal deficit put at N13.08trn.

The Deficit-to-Gross domestic product (GDP) Ratio was put at 1.52%.

Last Week, President Bola Tinubu increased the 2025 fiscal year budget from an initial N49.7trillion to N54.2trillion, seeking approval from the Senate and the House of Representatives.

Chairman of the House Committee on Appropriations, Abubakar Bichi, while presenting the bill for consideration, stated that the committee met with the Presidential Economic Planning team to further discuss revenue projections and expenditure for the 2025 Appropriation Bill.

According to him, the 2025 Appropriation Bill was presented late, compared to that of 2024.

He urged the executive to present subsequent budgets to the National Assembly not later than three months before the next financial year, to maintain the January to December budget cycle.

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