President Bola Ahmed Tinubu has directed the Central Bank of Nigeria (CBN) and other financial regulators to intensify monitoring of cryptocurrency and digital payment activities, warning that the rapid migration of Nigerians to non-bank platforms poses risks to the economy.

According to the President, the pace at which citizens are turning to stablecoins and other digital currencies outside the traditional banking system has become a matter of concern.

Speaking through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday, Tinubu said Nigeria could not afford to ignore the digital financial revolution.

“There is a digital revolution. Many people now make payments without using the banking system. They’ve turned to stablecoins and digital currencies.

“To this end, I have directed capital market and banking authorities to get hold of this narrative and track it while it is still evolving,” Tinubu said.

He added that technologies such as artificial intelligence and open banking were no longer futuristic ideas but “unavoidable realities” that Nigeria must harness for growth.

In his remarks, the CBN Governor, Olayemi Cardoso, highlighted ongoing reforms in the financial sector, projecting that diaspora remittances could hit $1bn monthly by 2026.

“When we began this journey, remittances were at $250 million a month. We targeted $500 million, and today we are at $600 million. By next year, our projection is $1 billion a month,” Cardoso said.

Also speaking at the conference, CIBN President and Chairman of Council, Prof. Pius Olanrewaju, disclosed that since 2024, 16 listed banks had raised over ₦2.5 trillion in fresh capital to strengthen their balance sheets and support businesses.

“Net domestic credit to the private sector has risen to over ₦82 trillion this year, supporting businesses and job creation,” he added.

Binance Lawsuits Deepen Government Crackdown

Naijaonpoint reports that Tinubu’s directive comes against the backdrop of the Federal Government’s legal battles with cryptocurrency giant Binance Holdings Limited.

In February 2024, the government filed a lawsuit seeking $79.51 billion and ₦231 million in damages, accusing Binance of causing economic losses through unregulated operations.

The Federal Inland Revenue Service (FIRS) also demanded $2.001 billion in income taxes for 2022 and 2023, while the Economic and Financial Crimes Commission (EFCC) charged the firm with tax evasion, money laundering, and foreign exchange violations.

Two of Binance’s executives, Tigran Gambaryan and Nadeem Anjarwalla, are currently facing trial in Abuja.

According to court filings, the lawsuits include penalties for tax evasion, interests tied to the CBN’s lending rate, and other sanctions.

The government further alleged that Binance concealed its operations despite having a significant economic presence in Nigeria.

While critics argue that the proposed 5% fuel surcharge and increased regulatory clampdown are further squeezing Nigerians, Tinubu’s government insists that tighter monitoring of digital assets is critical to protect the financial system.

Analysts, however, warn that excessive restrictions could drive crypto transactions underground, making them even harder to regulate.