Emma Okonji
A Lagos-based tech analyst who has interest in cryptocurrency growth, Mr. Bright Johnson has advised the federal government to release two Binance executives, detained while trying to negotiate recent restricted access to several crypto platforms including Binance, in Nigeria.
The two Binance executives, American citizen, Tigran Gambaryan and Nadeem Anjarwalla, a UK/Kenyan national, came to negotiate with the government and eventually were detained and have remained in detention without formal charges against them.
According to Johnson, the action is not only counterproductive but could eventually undermine the government’s efforts to bring about economic change and growth.
Johnson who spoke at a press conference in Lagos on Friday, said the Nigerian authorities seem to be hounding crypto exchanges, seeking to make them the scapegoats for the naira’s recent devaluation against the US dollar and the country’s soaring inflation rate, which has exceeded 20 per cent.
He argued that detaining the Binance employees was a misguided move that could backfire on the government, derailing its efforts to protect Nigeria’s economic interests.
The federal government recently restricted access to crypto services, including Binance as a way of steadying the naira.
But Johnson, while briefing select media, said: “The real leverage the government holds is not the detainment of two foreign nationals, but rather the immense appeal of Nigeria as Africa’s largest and leading economy. The simple fact is that crypto businesses want to operate in the Nigerian market because of its economic importance and until recently, its relatively amenable policies toward crypto adoption by both individuals and businesses.
“Crypto exchanges are not the cause of Nigeria’s economic and inflation woes; this stems from more deeply entrenched policy challenges, global headwinds impacting commodity prices, and other macroeconomic factors beyond the control of any single company. Blaming Binance and seeking to penalise it with dramatic actions like the detention creates an adversarial climate that will deter investment rather than encourage productive engagement”.
Speaking further, Johnson said: “The wiser path forward for Nigerian policymakers would be to recognise the inherent leverage the country possesses as a major African economic force. In the past, Binance expressed its willingness to comply with appropriate regulations to ensure the sustainability of its operations in this key market. Other major crypto players have indicated the same.
“Doubling down on an adversarial, enforcement-led approach is counterproductive and short-sighted. The detention of the two Binance employees is unlikely to speed up any sort of resolution to whatever legitimate concerns the Nigerian authorities may have. If anything, it slows down, or completely halts the critical conversation around how crypto exchanges can properly register as regulated businesses, meet robust standards and disclosures, and ultimately help Nigeria realise crypto’s economic development potential.”
Nigeria is right to want a well-regulated crypto market and accountability for any illicit activity, but alienating some of the leading players is self-defeating, Johnson further said.
