Nigeria to Ban Person-to-Person Crypto Trade in Battered Naira

Nigeria vowed to ban person-to-person cryptocurrency trading in the naira, taking its latest step to corral an industry which the West African nation blames for harming the battered local currency.

Securities and Exchange Commission Director General Emomotimi Agama also told a meeting with fintech professionals on Monday that new rules would be rolled out “in the coming days” covering crypto exchanges, digital asset custodians and other corners of the sector.

“The thing that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening,” Agama said. “Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action,” he said in a statement released by the Abuja-based SEC on Monday evening.

Peer-to-peer platforms allow crypto investors to trade directly with one another, rather than via a central intermediary. In such transactions, the traders themselves negotiate the price.

The warning follows Nigeria’s ban on Binance Holdings Ltd., the world’s largest cryptocurrency exchange, and the arrest of two of its executives when they visited the country in February.

One of them fled but the other, Tigran Gambaryan, has been jailed at the Kuje correctional center in Abuja and will go on trial this month where he faces charges of tax evasion, currency speculation and money laundering.

“Manipulations and all forms of activities that undermine our national interest would not be acceptable,” Agama said.

Africa’s most populous nation has seen residents flock into crypto assets as a hedge for weakness in the naira, which has lost 65% of its value against the dollar since the government eased currency rules in June to make the unit more attractive to foreign investors.

Central bank Governor Olayemi Cardoso in February accused Binance of allowing illicit transactions in the naira on its platform, which the authorities subsequently blocked.

“SEC will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest,” Agama said. “We ask that those involved in sharp practices that undermine national interest should cease and desist.”

By Emele Onu, Bloomberg 

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Unions made their demand as the nation marked Labour Day on Wednesday amidst increased economic hardship and stalled negotiations between the workers and the government. The dispute comes even as the country's salaries commission raised the pay of government workers by between 25 percent and 35 percent, backdated to January.

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Army in Nigeria tries two of its personnel over deadly drone strike accident

Five months after admitting to killing 85 civilians in an airstrike, the Nigerian army has brought those it holds accountable to book.

The Director of Defence Media Operations announced on Thursday (May 2nd) that two military personnel were facing a court martial.

An army drone strike accidentally hit Tudun Biri village, in northwestern Nigeria on December 3rd, last year.

Civilians celebrated a Muslim festival at the time.

Major General Edward Buba told reporters in Abuja that the victims had been mistaken for terrorists.

He added the army initiated disciplinary action against those culpable following what he called a painstaking investigation.

The accused are to face a court martial for acts of ommission or commission.

Major General Buba did not provide further information.

Nigeria's armed forces often rely on air strikes in their battle against so-called bandit militias in the northwest and northeast of the country where jihadists have been waging a 14-year conflict.

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Civil servants in Nigeria get pay rises up to 35% due to inflation

Nigeria has raised salaries for civil servants by between 25% and 35% amid to help them cope with the rising cost of living.

The lowest-paid government employee will now earn $324 (£258) a year, Reuters news agency reports.

Police and military officers are among state workers who are set to benefit from the pay rises, which will be backdated to January.

The announcement came on the eve of Wednesday's Workers' Day holiday.

However, the rate of inflation is currently more than 30% - the highest figure in nearly three decades.

The cost of food has risen even more - by 35%, according to the latest data from the National Bureau of Statistics, so the pay rises mean that salaries for civil servants stay roughly the same in real terms - what it can buy in the shops and markets.

Pensions for those workers who benefit were also increased by between 20% and 28%, the National Salaries, Incomes and Wages Commission (NSIWC) said.

The hikes come after the government recently raised the salaries of academic staff members and healthcare workers.

However, the monthly minimum wage, set by the government and which all employers are supposed to observe, has not changed since 2019, when it was put at 30,000 naira - this is now worth just $19 (£15) after a sharp fall in the value of the naira over recent months.

The government also recently increased electricity tariffs for consumers who use the most power as it seeks to wean the economy off subsidies that have weighed heavily on public finances.

The trade union umbrella group, the Nigeria Labour Congress (NLC), welcomed the latest pay increase but urged the government to ensure that it was reflective of the harsh economic situation in the country.

"These categories of workers are already in the privileged sector but we expect it to be extended also to other categories of civil servants who are in lower cadre and are vulnerable," NLC spokesman Comrade Benson Upah told local media.

Negotiations are ongoing between the government and the main labour unions about an increase in the minimum wage.

Food prices as well as the prices of goods and services have doubled in many parts of the country since the removal of a fuel subsidy last year.

Petrol shortages have worsened in Nigeria's major cities, with long queues observed since last week, as Africa's biggest oil producer struggled with a fuel scarcity.

Authorities blamed the shortage on supply disruptions due to logistical challenges.

Most of Nigeria's oil is exported, while the fuel which is used locally is mostly imported due to a lack of refining capacity.

By Wycliffe Muia, BBC

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