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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

CBN Increases ATM Daily Cash Withdrawal Limit to N100k

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The Central Bank of Nigeria (CBN) has increased cash withdrawal limits on all channels to N500,000 weekly for individuals and N5 million for corporates.

Announcing the policy revision in a circular on Tuesday, the regulator pegged automated teller machine (ATM) withdrawals at N100,000 daily, with a weekly cumulative withdrawal of N500,000.

The development is a major shift from tighter cash policy measures introduced under the previous administration.

In December 2022, the central bank, under Godwin Emefiele, its former governor, had directed deposit money banks and other financial institutions to limit over-the-counter cash withdrawals by individuals and corporate entities per week N100,000 and N500, 000, respectively.
The CBN’s latest policy reversal, also removed the cumulative deposit limit, saying the fee on excess deposit “shall no longer apply”.

According to the regulator, the policies form part of efforts to moderate the rising cost of cash management, address security concerns, and “reduce the potential for money laundering associated with the economy’s heavy reliance on cash”.

The bank said the policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

However, with the “effluxion of time”, the apex bank said the need has arisen to streamline the policies’ provisions to reflect present-day realities.

“Consequently, effective January 1, 2026, the following cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide,” the circular reads.

“The cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.

“The cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporates. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.

“The special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.

“Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.

“Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.”

According to the circular, signed by Rita Sike, CBN’s director of financial policy and regulation department, said all currency denominations “may be loaded in ATMs”.

However, the CBN retained the limit on over-the-counter encashment of third-party cheques at N100,000.

“Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above”.

“Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department) as applicable:

“a . Returns on cash withdrawal transactions above the specified limit;

“b. Returns on Cash Deposits

“Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.

“The following accounts/entities are exempted from the application of sections 2 and 5 of this circular:

“i. Revenue generating accounts of federal, state, and local governments; and

ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.

The CBN also said the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies “shall no longer apply”.

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Economy

CBN Retains Interest Rate at 27%

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The Monetary Policy Committee of the Central Bank of Nigeria has maintained the benchmark interest rate at 27 per cent, extending its pause on monetary tightening.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 303rd meeting in Abuja.

Cardoso said, “The Committee decided by a majority vote to maintain the monetary policy stance,” indicating that members were not yet convinced that current economic conditions warranted another reduction.

The move follows the 50-basis-point cut implemented in September 2025, the only rate reduction since the tightening cycle began under the current CBN leadership.

It also marks the fourth consecutive hold this year.

The MPC had raised rates six times in 2024 amid surging inflation and currency pressures.

The Punch

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Economy

FG Stops Proposed 15% Import Duty on Diesel, Petrol

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on Thursday, announced discontinuation of the planned 15 per cent duty on imported petroleum products.

NMDPRA’s Director, Public Affairs Department, George Ene-Ita, conveyed the development in a statement while warning the public to shun panic buying.

President Bola Tinubu, on October 29, approved an import tariff on petrol and diesel, a policy expected to raise the landing cost of imported fuel.

The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.

Implementation was slated to take effect on November 21, 2025.

The policy aimed to protect and promote local refineries like the Dangote Refinery and modular plants by making imported fuel more expensive.

While intended to boost local production, it is also expected to increase fuel costs, which could lead to higher inflation and transportation prices for consumers.

Experts have argued that the move could translate into higher pump prices for consumers, with some estimating an increase of up to N150 per litre or more.

In an update, however, NMDPRA said the government was no longer considering going ahead with implementing the petrol import duty.

“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in View,” the statement read in part.

Meanwhile, the NMDPRA also assured all that there is an adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold, during this peak demand period.

“There is a robust domestic supply of petroleum products (AGO, PMS, LPG, etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.

“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security,” the statement added.

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