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A representative of the Nigerian government has dismissed speculation surrounding a reported $10 billion fine for the cryptocurrency exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, contends that the allegations, as reported by the BBC, are the result of a misquotation.
According to the People’s Gazette, a local news outlet, Onanuga clarified that his words were misrepresented, asserting that there hasn’t been a definitive decision to impose a fine on Binance. He clarified that he did not state that Binance was informed about the fines or that it would amount to $10 billion, emphasizing that the possibility of a fine is still under consideration.
Regarding the purported $10 billion penalty on Binance, the People’s Gazette reported that Binance is unaware of any such fine and has not been officially informed. The cryptocurrency exchange has reportedly expressed reluctance to engage in negotiations with the Nigerian government regarding any fines.
This development comes amid increased regulatory scrutiny of crypto exchanges in Nigeria, with several platforms recently banned to protect the national currency, the Nigerian naira. Binance, in response to the crackdown on the crypto exchange, removed the naira from its peer-to-peer (P2P) service on February 28.
The P2P feature enables users to trade without involving a third party, gaining popularity in Nigeria in 2021 after the government banned its thriving crypto industry during former President Muhammadu Buhari’s administration.
Binance has faced heightened scrutiny in Nigeria, with the Central Bank of Nigeria (CBN) expressing concerns about “suspicious flows” of funds through the exchange’s Nigerian arm in 2023. CBN Governor Olayemi Cardoso highlighted that $26 billion had passed through Nigeria via Binance in 2023 from unidentified sources and users.
In the ongoing crackdown, the National Security Adviser’s office reportedly detained two senior Binance officials in Abuja, the Nigerian capital. This move aligns with the nation’s efforts to regulate cryptocurrency exchanges and address speculation surrounding the naira.
In December 2023, the CBN lifted a two-year ban on banks engaging in crypto transactions and issued guidelines for regulating virtual asset service providers simultaneously. Nigeria, in 2022, became the second country to launch a central bank digital currency, and the Africa Stablecoin Consortium introduced the naira-pegged cNGN stablecoin in a CBN regulator sandbox in February.
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