Nigerian Bitcoin Advocate Files Lawsuit Against Cryptocurrency Restrictions

The Nigerian Securities and Exchange Commission (SEC) has expressed cautious openness to regulating Bitcoin, signaling a potential shift in the country’s approach to digital assets.

The developments coincide with a lawsuit filed by a Nigerian bitcoin advocate challenging government restrictions on cryptocurrencies.

Cryptocurrency education takes center stage in Nigeria’s SEC strategy

Dr. Momotimi Agama, Director General of the SEC, indicated that the agency is not opposed to regulating Bitcoin and is open to exploring the framework. This openness is intended to accommodate cryptocurrencies in the Nigerian financial system, despite the SEC’s historical caution. The SEC’s primary goal remains investor protection and maintaining market integrity, and any move toward regulation would be consistent with these goals.

“So for us, it’s clear that it’s about people understanding — people being more educated about cryptocurrency trading, digital asset trading and everything that comes with it. There are opportunities around it, so let’s look at those opportunities, and as such, we will deal with anyone who doesn’t comply with our regulations,” Agama said in a recent appearance on local television.

Read more: Cryptocurrency regulation in Africa: what we know so far

Just days after Agama’s statement, James Otudor, a prominent Bitcoin advocate, filed a lawsuit. The suit names key government officials, including the president, finance minister, and attorney general.

Utudor’s legal challenge centers on the Central Bank of Nigeria’s (CBN) crackdown on cryptocurrency transactions, which has created a difficult environment for cryptocurrency enthusiasts and businesses.

In addition, his lawsuit seeks to overturn these restrictions and calls for the establishment of a clear regulatory framework for digital assets in Nigeria. BeInCrypto reported that in addition to these restrictions, local officials have accused exchanges of failing to pay taxes, despite Nigeria contributing significantly to their revenue.

“Plaintiff argues that the ongoing persecution of Nigerians who own and use cryptocurrencies constitutes a clear violation of their fundamental human rights,” Otudor said in his Twitter post.

Read more: How to protect yourself from inflation with cryptocurrency

He also stressed the importance of digital assets for financial inclusion in a fragile economy, highlighting how cryptocurrencies like Bitcoin can protect savings from inflation and enable international transactions. This is especially important in the face of the devaluation of the naira and shortages of foreign currencies. He therefore advocates for the recognition of Bitcoin and other cryptocurrencies as unique financial instruments, calling for regulations that reflect their distinct characteristics.