The Nigerian government has announced plans to remove the national currency, the Naira, from all peer-to-peer (P2P) trading platforms, as revealed by Emomotimi Agama, the Director General of the Nigerian Securities and Exchange Commission (SEC), during a virtual meeting with blockchain stakeholders.

This decision is part of a broader strategy to address currency manipulation in the foreign exchange market. Local stakeholders attribute the surge in P2P crypto trading in Nigeria to insufficient regulation. Despite recent regulatory challenges, Nigeria, Africa's most populous country, has seen significant crypto adoption, ranking second on Chainalysis' global crypto adoption index.

This regulatory shift contrasts with the more crypto-friendly approach at the beginning of President Bola Tinubu's administration, signaling a stricter stance against crypto speculators blamed for destabilizing the foreign exchange market.

The government has taken measures such as instructing telecom providers to block access to crypto exchanges, blaming platforms like Binance for exacerbating Naira devaluation, and directing financial institutions to block crypto-related accounts and enhance Know Your Customer (KYC) compliance.

Financial journalist Olumide Adesina believes these actions prioritize the government's interests over those of the population, potentially leading to the "extinction" of the crypto industry in Nigeria.