Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Tuesday, September 30, 2025
Video - Nigeria’s new 20 percent expat tax sparks investment concerns
Nigeria’s 2025 Tax Act, effective January 1, 2026, will impose a 20 percent tax on expatriates earning over $521 monthly, replacing outdated regulations to generate trillions of naira. Critics warn it could deter foreign investment and complicate diplomatic ties.
Nigeria and South Africa set to exit dirty-money list in October
Nigeria and South Africa could be removed from the Financial Action Task Force’s “grey list” as early as next month, a potential boost for two of Africa’s largest economies, according to sources familiar with the matter.
The FATF, a Paris-based global watchdog on money laundering and terrorist financing, placed both countries under heightened monitoring in February 2023 for shortcomings in tackling illicit financial flows.
Assessors conducted on-site inspections in recent weeks, and feedback on their action plans, as well as those of Burkina Faso and Mozambique, noted significant progress, sources told Bloomberg.
Business Insider Africa earlier reported that the FATF has already determined South African authorities have met “all or nearly all” of the required actions, according to FATF President Elisa de Anda Madrazo.
All four nations are expected to be cleared on Oct. 24, the final day of the FATF’s plenary meeting in Paris, though no final decision has been taken.
The FATF, a Paris-based global watchdog on money laundering and terrorist financing, placed both countries under heightened monitoring in February 2023 for shortcomings in tackling illicit financial flows.
Assessors conducted on-site inspections in recent weeks, and feedback on their action plans, as well as those of Burkina Faso and Mozambique, noted significant progress, sources told Bloomberg.
Business Insider Africa earlier reported that the FATF has already determined South African authorities have met “all or nearly all” of the required actions, according to FATF President Elisa de Anda Madrazo.
All four nations are expected to be cleared on Oct. 24, the final day of the FATF’s plenary meeting in Paris, though no final decision has been taken.
Potential market boost if listing is lifted
Although being placed on the grey list does not carry immediate penalties, it can severely damage a country’s economy and reputation.
A 2021 International Monetary Fund (IMF) report found that grey listing can cut capital inflows by as much as 7.6% of a country’s GDP.
South Africa’s Treasury said it will comment after the FATF’s decision is made public next month. Mozambique has completed all 26 actions needed to be delisted, said Luís Abel Cezerilo, who is coordinating the country’s removal.
That decision would come just as TotalEnergies SE prepares to restart its $20 billion natural gas export project.
Although being placed on the grey list does not carry immediate penalties, it can severely damage a country’s economy and reputation.
A 2021 International Monetary Fund (IMF) report found that grey listing can cut capital inflows by as much as 7.6% of a country’s GDP.
South Africa’s Treasury said it will comment after the FATF’s decision is made public next month. Mozambique has completed all 26 actions needed to be delisted, said Luís Abel Cezerilo, who is coordinating the country’s removal.
That decision would come just as TotalEnergies SE prepares to restart its $20 billion natural gas export project.
By Adekunle Agbetiloye, Business Insider Africa
Wednesday, September 24, 2025
Nigeria cuts lending rate for first time in five years
Nigeria’s central bank cut its main lending rate for the first time in five years, following the easing of inflation that had driven repeated hikes from early 2024.
The bank cut the benchmark rate by 50 basis points to 27% this week, citing “sustained disinflation, improved output growth, stable exchange rate and robust external reserves.” Nigeria’s inflation rate fell to 20.12% in August, the fifth consecutive decline this year. The bank also based the rate cut on its expectation that inflation will continue to slow for the rest of 2025, though it said it was monitoring “the risk posed by excess liquidity” from government spending.
Nigeria’s economy grew by 4.23% year-on-year in the second quarter, according to government data also released this week. Its rate cut comes as part of a wider easing of monetary policy across many of Africa’s biggest economies: central banks in Ghana, Egypt, and South Africa have taken similar steps, with cooling inflation cited in each case.
By Alexander Onukwue, SEMAFOR
The bank cut the benchmark rate by 50 basis points to 27% this week, citing “sustained disinflation, improved output growth, stable exchange rate and robust external reserves.” Nigeria’s inflation rate fell to 20.12% in August, the fifth consecutive decline this year. The bank also based the rate cut on its expectation that inflation will continue to slow for the rest of 2025, though it said it was monitoring “the risk posed by excess liquidity” from government spending.
Nigeria’s economy grew by 4.23% year-on-year in the second quarter, according to government data also released this week. Its rate cut comes as part of a wider easing of monetary policy across many of Africa’s biggest economies: central banks in Ghana, Egypt, and South Africa have taken similar steps, with cooling inflation cited in each case.
Friday, August 1, 2025
Nigeria embraces stablecoins
Meanwhile, Hong Kong authorities are urging caution in stablecoin adoption as its landmark Stablecoins Ordinance takes effect. The city-state says it will only issue a handful of licenses, and that most applicants “will be disappointed.”
Nigeria’s stablecoin embrace
Speaking at the Nigeria Stablecoin Summit in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, backed stablecoins as disruptive financial tools.
“I stand before you as both a regulator and an advocate for responsible innovation. My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” he said, as reported by local outlets.
Nigerians have been the most avid stablecoin users in Africa. A June report by Yellow Card exchange revealed that nearly 26 million Nigerians have been using stablecoins, equating to 12% of the population, which ranks the country first globally for adoption. The report described Nigeria’s stablecoin adoption as “a signal of how financial innovation can thrive in response to local needs.”
The DG joined several other African leaders who have acknowledged that stablecoins have become a vital cog in the continent’s financial rails. In Kenya, the central bank revealed that one in three banks has expressed strong interest in stablecoins, while in South Africa, the financial regulators have pointed out that they expect stablecoins to become the primary form of digital asset adoption over the next five years.
Agama says that Nigerians have been using stablecoins in cross-border funds transfers and, with the naira losing over 70% of its value against the U.S. dollar in the past three years, they have become a hedge against the local currency’s depreciation.
“Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility, a trend significantly amplified by the naira’s fluctuations, which have driven exponential growth in demand for dollar-backed digital assets,” he stated.
Market giants USDT and USDC are the most dominant in the Nigerian market. However, Agama said, “Africa needs African solutions that reflect our market conditions, demographic realities, and development priorities.”
One of these African solutions is cNGN, Nigeria’s first homegrown regulated stablecoin. Launched by the African Stablecoin Consortium, cNGN has hit $2.5 million in transaction volume across dApps, on-chain swaps, GameFi ecosystems, and merchant payments.
CNGN recently told CoinGeek it’s eyeing expansion beyond Nigeria, deepening its liquidity, and broadening its use cases.
“Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam. I want to see global capital flowing into Lagos as the stablecoin hub of the global south. This is not just finance. This is nation-building,” Agama told the attendees.
Speaking at the Nigeria Stablecoin Summit in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, backed stablecoins as disruptive financial tools.
“I stand before you as both a regulator and an advocate for responsible innovation. My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” he said, as reported by local outlets.
Nigerians have been the most avid stablecoin users in Africa. A June report by Yellow Card exchange revealed that nearly 26 million Nigerians have been using stablecoins, equating to 12% of the population, which ranks the country first globally for adoption. The report described Nigeria’s stablecoin adoption as “a signal of how financial innovation can thrive in response to local needs.”
The DG joined several other African leaders who have acknowledged that stablecoins have become a vital cog in the continent’s financial rails. In Kenya, the central bank revealed that one in three banks has expressed strong interest in stablecoins, while in South Africa, the financial regulators have pointed out that they expect stablecoins to become the primary form of digital asset adoption over the next five years.
Agama says that Nigerians have been using stablecoins in cross-border funds transfers and, with the naira losing over 70% of its value against the U.S. dollar in the past three years, they have become a hedge against the local currency’s depreciation.
“Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility, a trend significantly amplified by the naira’s fluctuations, which have driven exponential growth in demand for dollar-backed digital assets,” he stated.
Market giants USDT and USDC are the most dominant in the Nigerian market. However, Agama said, “Africa needs African solutions that reflect our market conditions, demographic realities, and development priorities.”
One of these African solutions is cNGN, Nigeria’s first homegrown regulated stablecoin. Launched by the African Stablecoin Consortium, cNGN has hit $2.5 million in transaction volume across dApps, on-chain swaps, GameFi ecosystems, and merchant payments.
CNGN recently told CoinGeek it’s eyeing expansion beyond Nigeria, deepening its liquidity, and broadening its use cases.
“Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam. I want to see global capital flowing into Lagos as the stablecoin hub of the global south. This is not just finance. This is nation-building,” Agama told the attendees.
HKMA: We’ll only hand out a handful of licenses
In Hong Kong, the city’s de facto central bank has called for caution amidst rising public interest in stablecoins.
Hong Kong’s Stablecoin Ordinance took effect on August 1, and some of Asia’s largest companies competed to be among the first to issue stablecoins under the new regime. However, the chief executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, now says that only a select few will receive the green light.
In his statement, Yue warned against the “growing frothiness” and “excessive exuberance” as the new regime takes effect. He says that some public companies have been putting out statements mentioning stablecoin integration to excite investors and spark a stock price rally.
“…in the initial stage, we will at most grant a handful of stablecoin issuer licences. In other words, a large number of applicants will be disappointed,” Yue warned.
While HKMA hasn’t revealed any details about the licensing process, experts opine that the big companies with extensive experience in tech and finance are most likely to beat the smaller startups to the punch. Those who have participated in the HKMA’s Stablecoin Sandbox stand an even bigger chance. They include JD.com’s (NASDAQ: JD) stablecoin subsidiary, Animoca Brands, and Standard Chartered Bank (NASDAQ: SCBFF).
While the new framework makes Hong Kong one of the world’s most attractive stablecoin hubs, it comes with risks to investors. The city has seen its fair share of fraudulent digital asset projects, the most prominent being JPEX, which sank with over $200 million in user funds.
In Hong Kong, the city’s de facto central bank has called for caution amidst rising public interest in stablecoins.
Hong Kong’s Stablecoin Ordinance took effect on August 1, and some of Asia’s largest companies competed to be among the first to issue stablecoins under the new regime. However, the chief executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, now says that only a select few will receive the green light.
In his statement, Yue warned against the “growing frothiness” and “excessive exuberance” as the new regime takes effect. He says that some public companies have been putting out statements mentioning stablecoin integration to excite investors and spark a stock price rally.
“…in the initial stage, we will at most grant a handful of stablecoin issuer licences. In other words, a large number of applicants will be disappointed,” Yue warned.
While HKMA hasn’t revealed any details about the licensing process, experts opine that the big companies with extensive experience in tech and finance are most likely to beat the smaller startups to the punch. Those who have participated in the HKMA’s Stablecoin Sandbox stand an even bigger chance. They include JD.com’s (NASDAQ: JD) stablecoin subsidiary, Animoca Brands, and Standard Chartered Bank (NASDAQ: SCBFF).
While the new framework makes Hong Kong one of the world’s most attractive stablecoin hubs, it comes with risks to investors. The city has seen its fair share of fraudulent digital asset projects, the most prominent being JPEX, which sank with over $200 million in user funds.
Tuesday, July 1, 2025
Video - Nigeria revamps credit system to reduce defaults
Nigeria is overhauling its credit system by linking loan histories to citizens’ National Identity Numbers. The move aims to curb defaults, encourage responsible borrowing, and expand credit access, especially in underserved areas. Experts warned that the system must be backed by strong data protection and inclusive financial infrastructure.
Friday, June 27, 2025
Nigeria’s first stablecoin summit to offer $10,000 to startups, undergraduates
Nigeria’s first stablecoin summit scheduled to hold in Lagos is expected to offer outstanding startups and undergraduates grants up to $10,000 in what would promote business development and innovation, organisers say.
The conference, billed for Thursday, July 24, 2025, is set to bring together policymakers, stablecoin innovators, and various stakeholders to discuss the future of borderless digital payments on the continent.
“Startups attending the event would have the opportunity to participate in a pitch competition, where winners would receive up to $10,000 in cash and other prizes,” the organisers said in a statement.
“Undergraduates with an interest in the tech and digital finance ecosystem are invited to submit their write-ups for an Essay Competition, which would award 1st, 2nd, and 3rd place to the best entries.”
Nigeria boasts one of the largest tech talent pools in Africa. During the conference, policymakers, stablecoin issuers, exchanges, payment gateways, regulators, developers, and ecosystem enablers are all expected to engage in open dialogues to develop frameworks that reflect current realities.
Nathaniel Luz, president of the Africa Stablecoin Network and convener of the Nigeria Stablecoin Summit, stated that there is a need for coordinated efforts and collaborations between the government and fintechs to unlock the full potential of stablecoins in Nigeria.
He added that policymakers and stablecoin innovators would need to engage in open dialogue to develop frameworks that reflect current realities.
Luz explained that the summit’s theme, “Enhancing Adoption for a Borderless Digital Economy,” speaks to Nigeria’s need for a more integrated and seamless borderless payment ecosystem.
He emphasized that the industry needs interoperable payment systems and reliable on- and off-ramps that connect everyday commerce with stablecoins, stressing that collaborations between the government and fintechs would strengthen trust, scale solutions, and help build a sustainable ecosystem that solves real-world problems.
He further said that Nigeria’s digital finance economy is ripe for growth and expansion with room for more adoption, but these crucial “gateway discussions” have not yet taken place. He therefore urged all stakeholders in the Nigerian digital finance ecosystem to attend the Nigeria Stablecoin Summit, organised by the Africa Stablecoin Network.
Luz described the gathering as a very special and pivotal moment that would shape the future of payments in Nigeria and beyond. He asserted that while stablecoins might be a luxury for the West, they are an economic lifeline for Africa.
The conference, billed for Thursday, July 24, 2025, is set to bring together policymakers, stablecoin innovators, and various stakeholders to discuss the future of borderless digital payments on the continent.
“Startups attending the event would have the opportunity to participate in a pitch competition, where winners would receive up to $10,000 in cash and other prizes,” the organisers said in a statement.
“Undergraduates with an interest in the tech and digital finance ecosystem are invited to submit their write-ups for an Essay Competition, which would award 1st, 2nd, and 3rd place to the best entries.”
Nigeria boasts one of the largest tech talent pools in Africa. During the conference, policymakers, stablecoin issuers, exchanges, payment gateways, regulators, developers, and ecosystem enablers are all expected to engage in open dialogues to develop frameworks that reflect current realities.
Nathaniel Luz, president of the Africa Stablecoin Network and convener of the Nigeria Stablecoin Summit, stated that there is a need for coordinated efforts and collaborations between the government and fintechs to unlock the full potential of stablecoins in Nigeria.
He added that policymakers and stablecoin innovators would need to engage in open dialogue to develop frameworks that reflect current realities.
Luz explained that the summit’s theme, “Enhancing Adoption for a Borderless Digital Economy,” speaks to Nigeria’s need for a more integrated and seamless borderless payment ecosystem.
He emphasized that the industry needs interoperable payment systems and reliable on- and off-ramps that connect everyday commerce with stablecoins, stressing that collaborations between the government and fintechs would strengthen trust, scale solutions, and help build a sustainable ecosystem that solves real-world problems.
He further said that Nigeria’s digital finance economy is ripe for growth and expansion with room for more adoption, but these crucial “gateway discussions” have not yet taken place. He therefore urged all stakeholders in the Nigerian digital finance ecosystem to attend the Nigeria Stablecoin Summit, organised by the Africa Stablecoin Network.
Luz described the gathering as a very special and pivotal moment that would shape the future of payments in Nigeria and beyond. He asserted that while stablecoins might be a luxury for the West, they are an economic lifeline for Africa.
Tuesday, May 13, 2025
Video - Nigeria’s central bank orders all banks to integrate Pan-African Payment and Settlement System
The Central Bank of Nigeria says the Pan-African Payment and Settlement System will simplify transactions and help African economies keep more value circulating within their borders. Many experts also believe this will help eliminate the expensive and time-consuming process of intra-African trade relying on the U.S. dollar.
Friday, April 25, 2025
Aliko Dangote to Join the World Bank
In response, the Nigerian billionaire accepted the invitation, noting that being icnluded in the group was an honor.
“I am both honoured and excited to accept my appointment to the World Bank’s Private Sector Investment Lab, dedicated to advancing investment and employment in emerging economies,” he said.
“This opportunity aligns with my long-standing commitment to sustainable development and unlocking the potential of developing economies.
Drawing inspiration from the remarkable successes of the Asian Tigers, which have demonstrated the power of strategic investment and focused economic policy, I am eager to collaborate with fellow leaders to replicate such outcomes across other regions,” he added.
What the World Bank said
Under the broader expansion of its Private Sector Investment Lab, which is currently starting a new phase, the World Bank, on Wednesday, announced Dangote's appointment.
This new phase is aimed at scaling up ideas to attract private capital and generate employment in the developing world, as reported by the Punch.
The global lender also noted that the aforementioned new phase has expanded the Lab's membership to include industry executives with experience creating jobs in developing markets, which is consistent with the Bank's growing role in job creation as a major driver of growth.
During the announcement, they mentioned that they had invited the Nigerian billionaire, alongside Bill Anderson, CEO of Bayer AG, Sunil Bharti Mittal, Chair of Bharti Enterprises, and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, to the recent iteration of the Lab.
“These industries have a proven ability to translate investment into broad-based employment and economic opportunity”, the World Bank head Ajay Banga stated.
“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period,” he added.
Currently, according to the Dangote website, Dangote cement alone has been able to support 54,000 employment in four African nations where the business operates, including Nigeria, Ethiopia, Senegal, and South Africa.
His recently established single train 650,000 barrels refinery also employs 29,000 Nigerians and 11,000 foreigners.
AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group were among the notable CEOs who launched the Lab.
Under the broader expansion of its Private Sector Investment Lab, which is currently starting a new phase, the World Bank, on Wednesday, announced Dangote's appointment.
This new phase is aimed at scaling up ideas to attract private capital and generate employment in the developing world, as reported by the Punch.
The global lender also noted that the aforementioned new phase has expanded the Lab's membership to include industry executives with experience creating jobs in developing markets, which is consistent with the Bank's growing role in job creation as a major driver of growth.
During the announcement, they mentioned that they had invited the Nigerian billionaire, alongside Bill Anderson, CEO of Bayer AG, Sunil Bharti Mittal, Chair of Bharti Enterprises, and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, to the recent iteration of the Lab.
“These industries have a proven ability to translate investment into broad-based employment and economic opportunity”, the World Bank head Ajay Banga stated.
“We are grateful to the original Lab leaders who helped us deliver strong results in the initial work period,” he added.
Currently, according to the Dangote website, Dangote cement alone has been able to support 54,000 employment in four African nations where the business operates, including Nigeria, Ethiopia, Senegal, and South Africa.
His recently established single train 650,000 barrels refinery also employs 29,000 Nigerians and 11,000 foreigners.
AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An Group, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata Sons, Temasek, and Three Cairns Group were among the notable CEOs who launched the Lab.
By Chinedu Okafor, Business Insider Africa
Tuesday, April 8, 2025
Binance vs Nigeria: Court Postpones $81.5 Billion Binance Tax Case Until April 30
A Nigerian court has postponed the tax evasion case against cryptocurrency exchange Binance until April 30, 2025. The delay will give Nigeria’s Federal Inland Revenue Service (FIRS) time to respond to Binance’s request to invalidate a court order allowing documents to be served via email.
The case involves claims that Binance owes $2 billion in back taxes plus an additional $79.5 billion that Nigeria says is due for economic damages. Nigerian authorities allege the exchange’s operations destabilized the country’s currency, the naira.
Binance’s lawyer, Chukwuka Ikwuazom, challenged the email service order in court on April 7. He argued the tax authority failed to get proper permission to serve court documents to Binance outside Nigeria, noting the company is registered in the Cayman Islands and has no physical office in Nigeria.
Tax Claims Against Crypto Exchange
The FIRS filed the lawsuit in February 2025, claiming Binance maintains a “significant economic presence” in Nigeria. This presence, according to tax authorities, makes the company liable for corporate income taxes for 2022 and 2023.
Nigeria is asking the court to order Binance to pay these taxes plus a 10% annual penalty on unpaid amounts. The tax authority is also seeking nearly 27% interest on the unpaid taxes.
The economic damages claim of $79.5 billion stems from allegations that Binance’s operations hurt the value of the naira. Binance has denied these claims about destabilizing the Nigerian currency.
Binance effectively exited the Nigerian market in March 2024 by stopping naira deposits and withdrawals on its platform. This move came amid mounting pressure from Nigerian authorities.
The case involves claims that Binance owes $2 billion in back taxes plus an additional $79.5 billion that Nigeria says is due for economic damages. Nigerian authorities allege the exchange’s operations destabilized the country’s currency, the naira.
Binance’s lawyer, Chukwuka Ikwuazom, challenged the email service order in court on April 7. He argued the tax authority failed to get proper permission to serve court documents to Binance outside Nigeria, noting the company is registered in the Cayman Islands and has no physical office in Nigeria.
Tax Claims Against Crypto Exchange
The FIRS filed the lawsuit in February 2025, claiming Binance maintains a “significant economic presence” in Nigeria. This presence, according to tax authorities, makes the company liable for corporate income taxes for 2022 and 2023.
Nigeria is asking the court to order Binance to pay these taxes plus a 10% annual penalty on unpaid amounts. The tax authority is also seeking nearly 27% interest on the unpaid taxes.
The economic damages claim of $79.5 billion stems from allegations that Binance’s operations hurt the value of the naira. Binance has denied these claims about destabilizing the Nigerian currency.
Binance effectively exited the Nigerian market in March 2024 by stopping naira deposits and withdrawals on its platform. This move came amid mounting pressure from Nigerian authorities.
Previous Detentions and Escapes
The current tax case follows earlier legal troubles for Binance in Nigeria. In February 2024, Nigerian authorities arrested and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on tax fraud and money laundering charges.
Nigeria later dropped the tax charges against both executives in June 2024. The remaining charge against Gambaryan was dropped in October.
Anjarwalla escaped Nigerian custody in March 2024, reportedly slipping away from guards and fleeing to Kenya. He remains at large, according to reports.
Gambaryan, a US citizen, was released and returned home in October 2024. Reports indicated his health had worsened during detention, with cases of pneumonia, malaria, and a herniated spinal disc requiring possible surgery.
Binance has stated it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities. However, the company had not immediately responded to requests for comment on the latest court developments at the time of reporting.
The case highlights ongoing tensions between cryptocurrency platforms and national regulators as countries work to establish frameworks for taxing and regulating digital asset businesses operating within their borders.
The next court date of April 30 will determine whether Binance’s challenge to the service order will be accepted or if the case will proceed under the current terms.
The current tax case follows earlier legal troubles for Binance in Nigeria. In February 2024, Nigerian authorities arrested and detained two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, on tax fraud and money laundering charges.
Nigeria later dropped the tax charges against both executives in June 2024. The remaining charge against Gambaryan was dropped in October.
Anjarwalla escaped Nigerian custody in March 2024, reportedly slipping away from guards and fleeing to Kenya. He remains at large, according to reports.
Gambaryan, a US citizen, was released and returned home in October 2024. Reports indicated his health had worsened during detention, with cases of pneumonia, malaria, and a herniated spinal disc requiring possible surgery.
Binance has stated it is working with Nigeria’s Federal Inland Revenue Service to resolve potential historic tax liabilities. However, the company had not immediately responded to requests for comment on the latest court developments at the time of reporting.
The case highlights ongoing tensions between cryptocurrency platforms and national regulators as countries work to establish frameworks for taxing and regulating digital asset businesses operating within their borders.
The next court date of April 30 will determine whether Binance’s challenge to the service order will be accepted or if the case will proceed under the current terms.
By Oliver Dale, COIN CENTRAL
Thursday, April 3, 2025
President Tinubu signs law classifying crypto as securities
Nigeria’s President Bola Tinubu has signed a new law strengthening SEC oversight of cryptocurrencies and classifying them as securities.
Nigeria‘s President Bola Ahmed Tinubu has signed the Investments and Securities Act 2024 into law, classifying cryptocurrencies as securities under the regulatory authority of the Nigerian Securities and Exchange Commission, local news outlets report.
The new law replaces the ISA 2007 Act and reportedly expands the SEC’s role in overseeing Nigeri’s capital markets, including crypto exchanges. The act also enforces tougher penalties for Ponzi schemes, which are commonly linked to the crypto market.
For example, those convicted of running Ponzi schemes could face a prison sentence of 10 years or more, along with a minimum fine of N10 million (about $6,500). The total financial penalties could go up to N40 million (around $26,000), depending on how serious the offense is.
Nigeria’s tech-savvy population has turned to cryptocurrencies as a way to protect against high inflation and the sharp decline of the naira against the dollar since mid-2023. According to data from Chainalysis, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024.
Since taking office in 2023, President Bola Tinubu has focused on fiscal reforms aimed at boosting government revenue and reducing the budget deficit, including revamping tax administration. The push for regulation brings Nigeria in line with other regions like the European Union with its Markets in Crypto-Assets, all of which have moved to regulate cryptocurrencies.
By Denis Omelchenko, Crypto News
Nigeria‘s President Bola Ahmed Tinubu has signed the Investments and Securities Act 2024 into law, classifying cryptocurrencies as securities under the regulatory authority of the Nigerian Securities and Exchange Commission, local news outlets report.
The new law replaces the ISA 2007 Act and reportedly expands the SEC’s role in overseeing Nigeri’s capital markets, including crypto exchanges. The act also enforces tougher penalties for Ponzi schemes, which are commonly linked to the crypto market.
For example, those convicted of running Ponzi schemes could face a prison sentence of 10 years or more, along with a minimum fine of N10 million (about $6,500). The total financial penalties could go up to N40 million (around $26,000), depending on how serious the offense is.
Nigeria’s tech-savvy population has turned to cryptocurrencies as a way to protect against high inflation and the sharp decline of the naira against the dollar since mid-2023. According to data from Chainalysis, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024.
Since taking office in 2023, President Bola Tinubu has focused on fiscal reforms aimed at boosting government revenue and reducing the budget deficit, including revamping tax administration. The push for regulation brings Nigeria in line with other regions like the European Union with its Markets in Crypto-Assets, all of which have moved to regulate cryptocurrencies.
Wednesday, March 26, 2025
Visa To Set Up A Data Centre In Nigeria
Visa has announced an investment into the construction of a state-of-the-art data center in Nigeria. This was revealed by Visa’s regional president, Andrew Torre, during a visit to Vice President Kashim Shettima.
This move signals a leap forward for Nigeria’s digital infrastructure and is more than just a corporate expansion. It is a strategic play to solidify Nigeria’s position in the global tech landscape. For years, Nigeria has relied on external data infrastructure. This has led to slow data processing (latency), concerns about data ownership (sovereignty), and vulnerability to disruptions outside the country.
Visa’s data center aims to solve these problems by bringing data storage and processing closer to home. This translates to faster, more reliable online transactions for everyone, from everyday consumers to large businesses.
Andrew Torre said that this project complements Visa’s existing $1 billion investment in Nigeria. This includes partnerships with Moniepoint for digital payment solutions, Interswitch, and ThriveAgric, supporting smallholder farmers and food security. The data center, however, is designed to bring new technologies to the Nigerian market, further fueling the nation’s digital economy.
Vice-President Shettima warmly welcomed Visa’s expansion, highlighting the Nigerian government’s commitment to fostering partnerships and driving digital growth. He particularly praised Visa’s investment in ThriveAgric, aligning with the government’s focus on modernizing the agriculture sector. He stated that Nigeria is where the action is noting the country’s leading position in Africa’s fintech scene.
The impact will range from faster online payments, smoother e-commerce experiences, and more reliable digital services across all sectors. This increased efficiency will stimulate economic growth and create a more robust digital ecosystem. Beyond speed, the data center addresses data sovereignty. Keeping data within Nigeria’s borders ensures greater control and security, empowering businesses and consumers alike.
By Sonya Israni, CIO Africa
This move signals a leap forward for Nigeria’s digital infrastructure and is more than just a corporate expansion. It is a strategic play to solidify Nigeria’s position in the global tech landscape. For years, Nigeria has relied on external data infrastructure. This has led to slow data processing (latency), concerns about data ownership (sovereignty), and vulnerability to disruptions outside the country.
Visa’s data center aims to solve these problems by bringing data storage and processing closer to home. This translates to faster, more reliable online transactions for everyone, from everyday consumers to large businesses.
Andrew Torre said that this project complements Visa’s existing $1 billion investment in Nigeria. This includes partnerships with Moniepoint for digital payment solutions, Interswitch, and ThriveAgric, supporting smallholder farmers and food security. The data center, however, is designed to bring new technologies to the Nigerian market, further fueling the nation’s digital economy.
Vice-President Shettima warmly welcomed Visa’s expansion, highlighting the Nigerian government’s commitment to fostering partnerships and driving digital growth. He particularly praised Visa’s investment in ThriveAgric, aligning with the government’s focus on modernizing the agriculture sector. He stated that Nigeria is where the action is noting the country’s leading position in Africa’s fintech scene.
The impact will range from faster online payments, smoother e-commerce experiences, and more reliable digital services across all sectors. This increased efficiency will stimulate economic growth and create a more robust digital ecosystem. Beyond speed, the data center addresses data sovereignty. Keeping data within Nigeria’s borders ensures greater control and security, empowering businesses and consumers alike.
Thursday, February 20, 2025
Nigeria suing Binance for $81.5 billion
Nigeria has filed a lawsuit seeking to compel Binance to pay $79.5bn for economic losses the country’s government says were caused by the cryptocurrency exchange’s operations there and $2bn in back taxes, court documents showed on Wednesday.
Authorities blame Binance, the world’s largest crypto exchange, for Nigeria’s currency woes and detained two of its executives in 2024 after crypto websites emerged as platforms of choice for trading the local naira currency.
Binance, which is not registered in Nigeria, did not immediately respond to a request for comment. It has previously said it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve potential historic tax liabilities.
The inland revenue service alleges that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts. FIRS is also requesting a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria after a government crackdown on the industry last year. The charges include non-payment of value-added tax, company income tax, failure to file tax returns and complicity in helping customers to evade taxes through its platform.
Binance, which is contesting the charges, announced last March that it was stopping all transactions and trading in the naira. The company is also facing separate anti-graft agency money laundering charges, which it has denied.
Authorities blame Binance, the world’s largest crypto exchange, for Nigeria’s currency woes and detained two of its executives in 2024 after crypto websites emerged as platforms of choice for trading the local naira currency.
Binance, which is not registered in Nigeria, did not immediately respond to a request for comment. It has previously said it is working with Nigeria’s Federal Inland Revenue Service (FIRS) to resolve potential historic tax liabilities.
The inland revenue service alleges that Binance has a “significant economic presence” in Nigeria and is therefore liable for corporate income tax. It is seeking a court declaration that Binance pay income taxes for 2022 and 2023, plus a 10% annual penalty on unpaid amounts. FIRS is also requesting a 26.75% interest rate on the unpaid taxes, based on the Central Bank of Nigeria’s lending rate.
Binance was already facing four counts of tax evasion in Nigeria after a government crackdown on the industry last year. The charges include non-payment of value-added tax, company income tax, failure to file tax returns and complicity in helping customers to evade taxes through its platform.
Binance, which is contesting the charges, announced last March that it was stopping all transactions and trading in the naira. The company is also facing separate anti-graft agency money laundering charges, which it has denied.
Wednesday, February 19, 2025
Aliko Dangote re-enters top 100 richest individuals list in Forbes 2025
According to Forbes' real-time ranking of billionaires, Dangote’s net worth climbed to approximately $23.9 billion from $13.4 billion last year. This increase of around $10.5 billion (78.4 per cent) was driven by the recent commencement of operations of Dangote Petroleum Refinery commenced operations in Lagos.
With a 92.3 per cent stake in the Dangote refinery, the 67-year-old billionaire has re-entered the ranks of the top 100 richest individuals for the first time since 2018. He also stands out prominently on the list as the only African among the top 100 richest individuals in the world.
South African billionaire Johann Rupert holds the second spot in Africa, at 164th with a net worth of $14.2 billion. Nicky Oppenheimer and family come in third place, at 288th position, with a net worth of $9.5 billion.
The Dangote refinery, with a capacity of 650,000 barrels per day, is the largest in Africa and the seventh-largest refinery globally. Since the commencement of operations of the petroleum refinery in Lagos, Dangote has disrupted the Nigerian government’s oil monopoly and has overcome substantial challenges from the Nigerian “oil mafia.”
The refinery is already influencing global energy dynamics after it recently signed a deal to export two cargoes of aviation fuel to Saudi Arabia. Locally, the refinery is already influencing the import-export market, as Nigeria's petrol imports have reached their lowest level in eight years, reducing reliance on foreign suppliers and strengthening fuel independence.
In an interview with Forbes, Dangote shared his vision for African industrialization, stating, "We have to build our nation by ourselves. We have to build our continent by ourselves, not rely on foreign investment." He described the refinery project as "the biggest risk of my life," emphasizing the stakes involved for his financial future.
Zainab Usman, Director of the Africa Programme at the Carnegie Endowment for International Peace, remarked that many Nigerians believe Dangote to be a hero, a true industrialist driving transformative change in the country and in Africa.
By Victor Oluwole, Business Insider Africa
Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'
Friday, January 24, 2025
Visa invests in Nigeria's Moniepoint
Founded in 2015, Moniepoint initially focused on providing infrastructure and payments technology for banks and financial institutions.
It has since grown into Nigeria's leading business banking provider and is now the country's largest merchant acquirer, powering most of the country’s Point of Sale transactions. In 2023, it expanded beyond SMEs and entered the personal banking market through its subsidiary, Moniepoint Microfinance Bank.
The firm now claims some 10 million businesses and individual customers, helping them access payments, banking, credit, and business management tools and processing $22 billion monthly.
Visa's investment comes soon after a $110 million Series C investment led by Development Partners International’s African Development Partners III fund and joined by Google’s Africa Investment Fund and African VC Verod Capital.
Tosin Eniolorunda, CEO, Moniepoint, says: "Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem."
Andrew Torre, regional president, CEE and Middle East and Africa, Visa, adds: "By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation."
It has since grown into Nigeria's leading business banking provider and is now the country's largest merchant acquirer, powering most of the country’s Point of Sale transactions. In 2023, it expanded beyond SMEs and entered the personal banking market through its subsidiary, Moniepoint Microfinance Bank.
The firm now claims some 10 million businesses and individual customers, helping them access payments, banking, credit, and business management tools and processing $22 billion monthly.
Visa's investment comes soon after a $110 million Series C investment led by Development Partners International’s African Development Partners III fund and joined by Google’s Africa Investment Fund and African VC Verod Capital.
Tosin Eniolorunda, CEO, Moniepoint, says: "Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem."
Andrew Torre, regional president, CEE and Middle East and Africa, Visa, adds: "By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation."
Thursday, January 23, 2025
Video - Central Bank of Nigeria halts extensions for export proceeds repatriation
The bank says no extensions will be accorded anymore for the repatriation of exports proceeds, in compliance with Nigeria's foreign exchange regulations. Non-oil export proceeds have a 180-day window for repatriation while oil and gas proceeds have a 90-day deadline.
Tuesday, October 29, 2024
Nigeria signs funding deal with IFC to boost naira currency financing
The central bank of Nigeria has signed an agreement with the International Finance Corp to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement on Monday.
The IFC, a World Bank Group member, aims to "significantly scale up" its financing in Nigeria, targeting over $1 billion in the coming years, the statement said.
The partnership will enable IFC to manage currency risks and increase its investments in Nigeria's naira currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.
"Many of these sectors require local currency financing, and IFC's partnership with the (central bank) is a key tool in expanding access," the statement said.
By Elisha Bala, Reuters
Monday, September 30, 2024
World Bank approves $1.57 billion loan for Nigeria
The World Bank has approved a $1.57 billion financing package for Nigeria under a new programme to support its health and education sectors and help provide sustainable power, the bank said on Monday.
The World Bank is the largest lender to Nigeria, with more than $15 billion in loans at the end of March, data from the Debt Management Office showed.
The bank said in a statement that the money would help increase availability and effectiveness of financing for basic education and primary healthcare service delivery.
"The new financing includes $500 million for addressing governance issues that constrain the delivery of education and health, $570 million for the Primary Healthcare Provision Strengthening Program and $500 million for the Sustainable Power and Irrigation for Nigeria Project," the bank said.
Nigeria is among countries with the highest number of out of school children mainly due to insecurity, especially in the north of the country where a long-running Islamist insurgency and armed kidnapping gangs have caused havoc.
The World Bank said part of the money would be used to improve dam safety to protect people from floods.
Nigeria faces frequent flooding and this year up to a million people were affected after a dam in northeastern Borno state burst.
More floods are expected in Nigeria after authorities in Cameroon started releasing water from a large dam to prevent it from overflowing.
By MacDonald Dzirutwe, Reuters
Friday, September 27, 2024
Nigeria’s hula cap gains traction as foreign exchange earner
The hula cap is a popular traditional headgear in northern Nigeria. Its intricate designs are gaining traction beyond Nigeria's borders. Local producers are now exporting caps to countries like Chad, Cameroon, and even the United States.
Monday, August 26, 2024
Video - Nigeria’s Central Bank announces a 130% surge in remittance inflows
According to the apex bank, this is a sign that ongoing policy measures to enhance liquidity in Nigeria's foreign exchange market are bearing positive results.
Friday, August 16, 2024
Nigeria targets crypto accounts worth $38 million in intensified crackdown
The move marks an escalation in a year-long crackdown on crypto use since Nigeria’s central bank alleged in February that crypto platforms enabled money flows through the country from unidentifiable sources.
In a Tuesday briefing to a government council chaired by President Bola Tinubu, National Security Adviser Nuhu Ribadu said his office initiated action to freeze $38 million held as crypto in digital wallets. The accounts allegedly received donations in support of nationwide cost of living protests that were held at the beginning of this month, local media outlets reported.
A separate report by Premium Times detailed screengrabs of what it purports to be a court order in Nigeria’s capital Abuja authorizing EFCC, Nigeria’s financial crimes investigator, to freeze four wallets holding about 37 million USDT, a stablecoin valued at par with the dollar. The wallets “are owned by individuals being investigated for offences of Money Laundering and Terrorism Financing,” the EFCC said according to the purported court order.
It is not clear when the agency began its investigation of the wallets’ owners. The order to freeze did not specify a connection to the protests and was granted on Aug. 9, the protests’ penultimate day. An EFCC spokesperson did not immediately respond to requests for comment by Semafor Africa.
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Nigeria’s crackdown has included shutting off user access to crypto websites and trading platforms, and the arrest of staffers of Binance, one of the world’s largest crypto companies. Authorities have said crypto trading fueled a sharp weakening of the naira currency earlier this year.
Some doubt has been raised as to the content of the crypto wallets targeted by Nigerian authorities.
Two reports on Wednesday argued that two of the wallets contained less crypto than the EFCC’s court order stipulated and that they remained active, while a third wallet was non-existent. KuCoin, a crypto trading exchange that suspended its peer-to-peer service in Nigeria in May and reported by technology publication Techpoint as the owner of one of the four wallets, could not be reached for comment.
Alexander’s view
Nigeria’s latest action against crypto holders is not surprising given the government’s tone all year, but its overlap with cost of living protests suggests a broader security anxiety within government circles.
Despite veiled threats by the army and police to discourage the protests, residents across the country marched earlier this month against the soaring prices of food and other essentials. The protests did not quite last for the scheduled 10-day period as intensity faded after the first few days. Security forces used tear gas and live ammunition on protesters. At least six people were reportedly killed on the first day of demonstrations.
The specter of Russian flags being flown in northern states, where incidents of looting of stores were also attributed to protesters, appears to have evoked a determination to identify and punish leading actors of the protests. Targeting funding sources is one way to do so, as the authorities did in 2020 during protests against police brutality known as #EndSARS.
By Alexander Onukwue, Semafor
Related story: US lawmakers say Nigeria is detaining American to extort Binance
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