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CBN Issues Circular Reversing 2021 Bitcoin Ban

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Central Bank of Nigeria (CBN) at the weekend issued a circular to all banks and Financial Institutions that lifted its ban on bitcoin and outlined new guidelines for Virtual Asset Service Providers in Nigeria.

CBN Issues Circular Reversing 2021 Bitcoin Ban

 

This new regulation is yet another positive step by the regulators in Nigeria in providing better regulatory clarity as we continue to see the growth and importance of bitcoin and stablecoins in the daily lives of Nigerians and the Nigerian economy more broadly.

In Feburary of 2021, the CBN stepped in and filled the void created by the lack of crypto regulation and consumer protection measures, coupled with their fears of money laundering and terror financing, to issue its now infamous circular, which saw the prohibition of Nigerian banks from allowing bank accounts to be directly tied to crypto transactions.

Which resulted in businesses having to adjust to the drastic change, with some shutting down.

However, a consequence of the circular was the growth of Nigeria’s P2P crypto market, which is now dominant globally.

According to Chainalysis, Nigeria’s crypto transaction volume surged by 9% YoY to $56.7B between July 2022 and June 2023. Additionally, per the Chainalysis 2023 Global Crypto Adoption Index report, Nigeria ranked 1st for P2P exchange trade volumes and 2nd for overall adoption, rising from its previous ranks of 17th and 11th, respectively, a year prior in their 2022 edition of that report.

In a Friday circular to all banks and other FIs, the CBN communicated their “Guidelines On Operations of Bank Accounts For Virtual Assets Service Providers (VASPs).” The CBN cited global trends and guidelines from the Nigerian SEC as reasons for lifting its previous restrictions, as well as its introduction of more regulatory clarity and guidelines for digital assets and activities of VASPs.

The guidelines outline permitted activities between banks and FIs when opening accounts for virtual asset transactions and facilitating foreign exchange inflows and virtual asset trade for VASPs. The CBN also states that Nigerian banks and FIs are prohibited from holding, trading, and transacting cryptocurrencies for themselves.

 


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E-Business

CAC to Prosecute Business Owners Operating Without Registration

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Corporate Affairs Commission (CAC) has reaffirmed its commitment to enforcing business registration laws in Nigeria, warning that individuals and organizations operating unregistered businesses will face prosecution.

In a statement, the CAC emphasized that conducting business without proper registration violates the Companies and Allied Matters Act (CAMA) 2020, undermining transparency and accountability in the corporate sector.

The commission stressed that registration is not only a legal requirement but also a gateway to formal business opportunities, including access to bank loans, government grants, and partnerships.

The enforcement drive will be nationwide, targeting small and medium-sized enterprises (SMEs), online vendors, and informal traders who have failed to comply despite previous awareness campaigns and registration amnesty windows.

The CAC disclosed that enforcement teams, in collaboration with security agencies, will be deployed to identify and prosecute defaulters.

The commission urged business owners to take advantage of its simplified registration platform to regularize their status, noting that compliance will boost investor confidence and improve Nigeria’s ease of doing business. It warned that ignorance of the law will not be accepted as an excuse.

Business owners are advised to act promptly to avoid legal consequences, as the CAC moves to ensure a more structured and regulated business environment in Nigeria.


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NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

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Nigerian Copyright Commission (NCC) has pledged to enforce its legal obligations to combat online intellectual property infringement and urged commercial music users to obtain proper licences from rights holders or their representatives.

NCC Vows to Tackle Online Infringement, Block Illegal Music Websites

The Commission stated that this ensures creators are fairly compensated, supporting the music industry’s sustainable growth.

In a statement commemorating the 2025 World Intellectual Property Day, themed “IP and Music: Feel the Best of IP,” the NCC announced plans to enforce the Copyright Act 2022, which allows for the takedown of infringing materials and blocking of websites hosting illegal content.

Signed by Mrs Ijeoma Egbunike, director of Public Affairs, the statement outlined an aggressive anti-piracy campaign in collaboration with the private sector, targeting the online environment.

Egbunike affirmed the NCC’s commitment to establishing enforceable standards for transparency, digital audits, and real-time royalty reporting to protect creators’ rights. She stated, “The NCC will continue to champion policies that support the growth of the music industry, improve the livelihoods of Nigerian musicians, and foster a culture of creativity and respect for intellectual property.”

Despite the global success of Afrobeats and other Nigerian genres, the NCC noted that many musicians face low royalty returns due to rampant digital piracy.

To address this, the Commission revised its Collective Management Regulations to enhance transparency and accountability among Collective Management Organisations (CMOs).

The NCC emphasised that proper licensing is a legal obligation and vital for Nigeria’s creative economy, stating, “Music must feel the beat of intellectual property for the full potential of creativity to be realised.”

The Commission highlighted that creators’ livelihoods depend on fair royalty compensation.

Recent enforcement measures include the NCC’s designation by the Attorney-General of the Federation as an authority under the Proceeds of Crime (Recovery and Management) Act 2022.

This, combined with the Copyright Act 2022, empowers the NCC to order takedowns and block illegal music distribution websites.


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FG Warns Nigerians Against Growing Threat of Cyber Slavery in West Africa

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The Federal Government, has warned Nigerians against the growing threat of cyber slavery within the West African sub-region.

The Ministry of Foreign Affairs, in a statement issued in Abuja by Kimiebi Imomotimi Ebienfa, acting spokesperson, noted with grave concern the alarming rise of cyber slavery across parts of West Africa, targeting Nigerian citizens, particularly vulnerable youths.

The government said many young Nigerians, including underage teenagers, were lured out of the country under the false promise of lucrative employment opportunities abroad, particularly in crypto-related operations.

According to the government, “In reality, these individuals are trafficked into sophisticated scam operations and enslaved to work in criminal “call centres” — often referred to as “419 cyber-scam factories.” There, they are forced under coercive and inhumane conditions to send thousands of fraudulent emails, text messages, and calls aimed at defrauding victims worldwide.”

The government also noted with dismay, a recent incident where the Economic and Organised Crimes Office (EOCO) in Accra, Ghana, rescued and detained a group of Nigerians forced to engage in cybercrime activities under inhumane conditions.

“This incident highlights the severe exploitation and abuse associated with cybercrime operations. It also underscores the need for enhanced efforts to combat such multibillion-dollar criminal networks and mitigate the susceptibility of victims.

“The Ministry strongly warns all Nigerians, especially the youths and parents, to exercise the utmost caution when presented with job offers, particularly those promising easy money, overseas travel, or remote work involving cryptocurrencies.

“Nigerians are therefore advised to verify all employment offers through official channels and report suspicious cases to relevant authorities for necessary investigation and action to curtail the activities of the perpetrators.

“The Ministry wishes to assure the general public that, as a precautionary measure to address this unfortunate situation, the Federal Government is working closely with regional partners, law enforcement agencies, and international organizations to tackle this heinous crime, rescue victims, and bring perpetrators to justice.

“The Ministry remains committed to protecting Nigerian citizens at home and abroad and will continue to raise awareness about emerging threats to the welfare and dignity of our people,” the statement read.


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