Users of Binance in Nigeria have raised concerns that the crypto exchange might be manipulating the exchange rate between the Nigerian Naira and the US dollar, allegedly under government directives. On February 21, Bayo Onanuga, an adviser to Nigerian President Bola Tinubu, launched a direct critique on the social media platform X, suggesting that Binance was “overtly determining exchange rates for Nigeria, usurping the Central Bank of Nigeria (CBN)’s role.”
Onanuga advocated for immediate action from the Economic and Financial Crimes Commission (EFCC) and the CBN to prevent the manipulation of the Nigerian currency and proposed a ban on cryptocurrencies to stop the devaluation of the Naira.
Following these accusations, Binance’s Peer-to-Peer (P2P) trading platform for Nigerian users faced temporary disruptions, with the exchange acknowledging the issue as a “temporary suppression of prices” and quickly adjusting its system to resume normal trading activities. The incident led many users to seek alternative platforms for trading cryptocurrencies, including KuCoin and ByBit, and prompted discussions around the regulatory environment for digital assets in Nigeria.
This development occurs in the context of Nigeria’s complicated relationship with cryptocurrency, marked by the Central Bank of Nigeria’s recent reversal of a crypto transaction ban. However, in a move to tackle currency speculation, the Nigerian government has now directed telecommunication companies to block access to websites of major crypto firms like Binance, OctaFX, and Coinbase.
Binance has responded to these challenges by stressing its commitment to a market-driven and transparent trading environment, denying any engagement in currency speculation. The platform also highlighted its ongoing dialogue with Nigerian regulators to align with local crypto regulation policies.
