Cryptocurrency craze unfazed in Nigeria despite bitcoin plung

While bitcoin and other cryptocurrencies have suffered precipitous falls in recent weeks, the units remain popular in Nigeria where they make it easier to do business.

On the surface, digital coins may not seem like a good idea in a country where corruption is rampant and stacks of hard cash are often smuggled overseas.

Yet West Africa's biggest economy has the world's third-largest bitcoin holdings as a percentage of gross domestic (GDP), behind Russia and New Zealand, according to Citigroup.

That may be because blockchain technology -- public, online ledgers that underpin cryptocurrencies -- is liberating Nigerians sidelined by the global financial system as it dramatically improves the ease of doing business.

Olaoluwa Samuel-Biyi, a slight 27-year-old entrepreneur, looks the part of an aspiring corporate disrupter, dressed in skinny jeans with dishevelled hair.

He first considered using cryptocurrency when credit card firms and other established payment providers refused to partner with his global remittance company, deeming the venture too risky.

"They said the markets were too high risk and that people could finance terrorism," he told AFP, laughing. "It's ridiculous."

He realised that the only way he could solve the problem was to use cryptocurrency.

"It's so hard to send money from Nigeria to Zimbabwe, or from the United States to Sudan," he explained. Banks were "very tedious" and payment companies "generally exploitative", he said.

"There's heavy discrimination, definitely. We have to go all around them to succeed."

- 'Financial inclusion' -

Samuel-Biyi's company, SureRemit, developed its own virtual token -- a kind of custom cryptocurrency like bitcoin or one of the many alternatives such as ether.

The tokens are used to buy vouchers, which may be used to purchase goods and pay bills at participating merchants anywhere in the world, cutting out cumbersome middlemen and eliminating fees.

In January, SureRemit held its "initial coin offering" (ICO), a form of online crowdfunding where people purchase the tokens to be put in circulation for use in eight countries, mostly in Africa and the Middle East.

The 500 million tokens, each worth two US cents, sold out in just two days and were snapped up by major cryptocurrency players, including South Korea's Hashed, raising $7 million for the company.

"We were expecting scam allegations," said Samuel-Biyi, referring to Nigeria's unenviable reputation for online financial fraud. "But the world really accepted it."

If the token system works, SureRemit stands to take a chunk of the world's remittance market, which was worth $429 billion in 2016, according to the World Bank.

It's hardly surprising that SureRemit was conceived in Nigeria: remittance flows that year were worth $19 billion -- more than four percent of GDP.

Sub-Saharan Africa has some of the highest remittance costs in the world, with the most expensive fees seen within the continent.

To send money from France to Mali incurs a five percent fee, a quarter of how much it costs to send from Nigeria to Mali.

Such high fees have for years forced Nigerians to find alternative, sometimes risky, ways to transfer money.

"I remember back in 2004, e-gold (a defunct digital currency) was the only option anyone in Nigeria had to make online payments," said Tim Akinbo, the founder of Tanjalo, a Nigerian exchange where people can buy bitcoin with the local naira currency.

"There are still African countries cut off from international commerce online. Bitcoin is technology that allows financial inclusion."

- Naira volatility -

The depreciation of the naira, which has sunk to 305 against the US dollar from 169 in 2015, has made cryptocurrencies even more attractive -- and the authorities are paying attention.

Nigeria's central bank governor Godwin Emefiele warned recently that "cryptocurrency or bitcoin is like a gamble", though the Senate has launched an investigation into "the viability of bitcoin as a form of investment".

Stern warnings haven't made an impact on trading, said Owenizi Odia, Nigeria spokesman for Luno, another cryptocurrency exchange operating in the country.

"I think there's an acknowledgement that this technology is the future, going beyond bricks and mortar to improve cost efficiency," added Muyiwa Oni, an analyst at Stanbic IBTC Holdings in Lagos.

"For now we're still trying to distinguish who the main players will be."

Samuel-Biyi hopes to be one of them.

"Whether or not the authorities call it gambling, Nigerians are just looking for any opportunity to get ahead of the curve," he said. "It's part of the hustle."

Sowetan

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Nigeria defeated in CHAN Final

Ayoub el Kaabi scored his ninth goal of the2018 African Nations Championship (CHAN) asMorocco became the first hosts to triumph by thrashing 10-man Nigeria 4-0 Sunday in a Casablanca downpour.

With Nigeria in disarray and the final long over as a contest, the previously little known striker completed his record-extending goal haul by firing into the net from close range.

Zakaria Hadraf put the home team ahead at Stade Mohammed V on the stroke of half-time and added the match-clinching third goal midway through the second half.

In between the first goals of the tournament for Hadraf, fellow midfielder Mohamed el Karti netted soon after Nigerian attacker Eneji Moses was red-carded following a second caution.

Before the biennial tournament kicked off last month, Achraf Bencharki from 2017 CAF Champions League winners Wydad Casablanca was the centre of attention.

His five goals were instrumental in the success of Wydad and he was expected to spearhead the Moroccan CHAN challenge.

But Bencharki was a shock absentee from the line-up for the tournament opener while lone striker El Kaabi bagged a brace in a 4-0 mauling of Mauritania.

He followed up with a hat-trick -- only the third in the history of the tournament -- against Guinea, put one past Namibia and scored twice in the semi-final victory over Libya.

His nine goals comfortably surpassed the previous record of five from Zambian Given Singuluma in the first CHAN finals nine years ago.

El Kaabi helped Racing Casablanca win promotion to the Moroccan top flight last season, then joined Renaissance Berkane, a relatively successful but low-profile elite division outfit.

After his CHAN exploits, national coach Herve Renard is likely to give the 24-year-old a chance as Morocco prepare to face Iran, Portugal and Spain at the 2018 World Cup in Russia.

The destruction of Nigeria created a record winning margin for a CHAN final, bettering the three-goal victories of Tunisia and the Democratic Republic of Congo.

Morocco pocketed a record $1.25 million (about one million euros) having justified their pre-tournament role as favourites to win the fifth CHAN.

Sudan performed best of the four previous host nations, finishing third. Rwanda reached the quarter-finals and the Ivory Coast and South Africa exited after the first round.

Morocco also became the first champions to win five of the six matches -- defeating Mauritania, Guinea, Namibia and Libya before overwhelming Nigeria.

The only blemish was partly self-inflicted as they fielded a virtual reserve side in a goalless draw with Sudan after both nations had secured last-eight places.

El Kaabi had a goal disallowed and struck the woodwork before Hadraf sidefooted a cut-back between the legs of goalkeeper Oladele Ajiboye for a 45th-minute lead.

After Moses had been sent off, Morocco took control and Nigeria fell apart with some comical defending contributing to their downfall.

El Karti made it 2-0 just past the hour, Hadraf completed his brace three minutes later and player-of-the-tournament El Kaabi completed the rout with 73 minutes gone.

AFP

Suicide bomb attack kills 6 in Nigeria

Six people were killed and 39 others injured in a suicide attack Wednesday night in northeastern Nigeria.

A female suicide bomber infiltrated the Dalori Internally Displaced Persons (IDPs) camp in the city of Maiduguri and detonated an explosive device, killing herself and five other people, Satomi Ahmad, head of the State Emergency Management Agency told reporters late on Wednesday.

Minutes after the first attack, a second bomber launched another suicide attack, which caused no casualties or any fatalities when she blew herself up into pieces, according to Satomi Ahmad.

The Boko Haram militant group has stepped up its campaign of suicide bombing using girls, usually veiled, to blow up targets in Nigeria's northeast.

Nigerian President Muhammadu Buhari recently said Boko Haram's wicked methods of using innocent children for suicide bomb attacks on soft targets are "the last kicks of a dying horse."

Buhari reiterated that Boko Haram had been degraded. But attacks have continued regardless of the country's military efforts.

The group has been trying since 2009 to establish an Islamic state in northeastern Nigeria. More than 15,000 people have been killed and millions displaced.

Xinhua

Nigeria beat Sudan to advance to CHAN 2018 Final

Nigeria survived a sending-off to edge past Sudan 1-0 in the semi-finals of the African Nations Championship and set up a final against hosts Morocco.

They also lost first-choice goalkeeper, captain Ikechukwu Ezenwa, to injury after just 11 minutes.

They played the last half hour with only 10 men, after Ifeanyi Ifeanyi was dismissed following a nasty challenge.

Okechukwu Gabriel got the only goal of the game.

But Nigeria had to rely on some excellent saves from replacement keeper Oladele Ajiboye and some poor finishing from Sudan, who also had a man sent off late on.

Just five minutes after Ezenwa, who has also been first-choice keeper for the full national team, was forced off, Kalu Okugbue launched a long ball forward that was headed on by Anthony Okpotu into the path of Gabriel, who guided his shot home.

One of Ajiboye's first impressive saves came on the stroke of half-time as he dived to push a header on to the post, with the Sudanese claiming the ball had crossed the line. Replays showed it had not.

Thirteen minutes after the break Nigeria were reduced to 10 men as Ifeanyi slid in with both feet on his opposite number Mohamed Hashim Idris to get his second yellow card, which means he will miss Sunday's final.

Sudan created numerous chances to score an equaliser but poor finishing let them down as Ajiboye made good saves to deny Abdelrahman Maaz and Abdellatif Boya among others.

Sudan also ended the match with 10 players as Bakri Bashir was shown a straight red card as the referee adjudged he pulled Dayo Ojo just outside the area to deny him a clear goalscoring opportunity.

The Sudanese were then denied twice in injury time as Ajiboye made another good save, then he and a defender managed to scramble the ball off the line.

Awaiting Nigeria in Sunday's final are the hosts Morocco, who earlier needed extra time to beat Libya 3-1.

The last action at the tournament for Sudan will be the third-placed play-off against Libya on Saturday in Marrakech.

BBC