Nigeria Restricts Access to Coinbase, Binance, and Kraken Amidst Record Naira Depreciation

Nigeria is attempting to stabilize its rapidly declining national currency, the naira, by restricting access to prominent cryptocurrency exchanges, according to a report by the Financial Times. 

This step is part of the Nigerian government's efforts to combat cryptocurrency speculation as the naira hits record lows.

Late on Wednesday, the Nigerian Communications Commission (NCC) directed telecommunications companies to limit users' access to major cryptocurrency platforms such as Binance, Coinbase, and Kraken. 

Consequently, on Thursday, users faced intermittent access to these exchanges.

Bayo Onanuga, the Special Adviser on Information and Strategy to the Nigerian President, confirmed on X that reports of the government restricting access to these exchanges were accurate.

Cryptocurrency exchanges have significantly influenced the unofficial valuation of the naira, with sites like Binance frequently used as references for local foreign exchange rates. 

The Nigerian government's decision to restrict access to these platforms aims to reassert control over the naira's valuation.

Onanuga criticized Binance, which has faced regulatory issues in various countries and has been disruptive to the currency market, for its role in influencing the naira's value. 

He argued, “Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the naira, not on its crypto exchange platform.”

Crypto should be banned in our country or else this bleeding of our currency will continue unabated.

Nigeria's drastic measures to protect its currency, such as shutting down influential financial websites and outlawing certain cryptocurrency exchanges, underscore the difficulties it faces in maintaining economic stability. 

Since their central bank removed its dollar peg in June, the national currency has depreciated by more than 70%.