Fri, November 22

Nigerian SEC Proposes Significant Fee Hikes for Crypto Exchanges

The country's vice president, Kashim Shettima, has said that Nigeria is prepared to surpass other developed nations economically and technologically. As part of Nigeria's plan for digital transformation and leadership in Africa, Shettima revealed this on Tuesday when he inaugurated the AI Expertise Blockchain and Technology Training and Outsourcing Initiative in Dutse, the capital of Jigawa State. In collaboration with the prominent tech firm Gluwa, the AI Expertise Blockchain and Technology Training and Outsourcing Initiative seeks to provide training in artificial intelligence, blockchain, and other cutting-edge technologies to 1,000 Nigerians every year. The Vice President urged Nigerian youngsters to embrace the initiative, stating that it is critical to the country's economic future, at the initiative's debut at the Yakubu Gowon NYSC Orientation Camp, Fanisau, Dutse. According to him: “We are not merely catching up with the rest of the world; we are poised to overtake them. This initiative offers its beneficiaries the chance to become part of a global workforce, driving innovation that will shape our future”. Together with outlining the initiative's wider goals, he said that the federal government is aiming to establish a nationwide network of tech centers that would sustain Nigeria's economic development for many years to come. The Vice President expressed gratitude for the collaboration with Gluwa, saying it is in line with President Tinubu's plan to transform Nigeria's digital technology space. He praised Gluwa for empowering Aella Microfinance Bank and enabling the flow of nearly N100 billion to two million Nigerians, while also acknowledging the substantial impact of the company. Jigawa State Governor Umar Namadi highlighted the significance of the initiative in his previous speech, calling it a unique chance that is right at the young people's doorstep. According to him, the new initiative prioritizes innovation and digital technologies and is in line with Jigawa State's 12-Point Agenda as well as the federal government's Renewed Hope Agenda. The governor went on to announce the creation of a new ICT & Digital Economy Agency, stating, that they are more committed than ever to re-establish Jigawa State as a significant ICT hub in Nigeria. Shettima had earlier announced the launch of the fourth iteration of the Expanded National Micro, Small, and Medium Enterprises (MSMEs) Clinic, revealing that President Bola Tinubu had issued an executive order directing the federal government to provide N150,000 grants to each state's business owners as part of its support for MSMEs nationwide. He said that the N150,000 that the president had allocated to each MSMEs was an outright grant that did not need to be repaid. One of the federal government's initiatives to facilitate business in Nigeria is the Expanded National MSME Clinics. These are a series of business forums that are arranged throughout the nation to offer MSMEs immediate solutions to problems they face. The first, second, and third editions of the clinics were introduced earlier this year in the states of Benue, Ogun, and Ekiti, respectively. The MSMEs sub-sector, according to Shettima, is the backbone of the country's economy and has been a top priority for the Tinubu administration. They not only account for over 45% of Nigeria's GDP and 96% of all businesses in the country, but they also provide a vital lifeline for 80% of the workforce. Malam Umar Namadi, the governor of Jigawa State, had earlier expressed gratitude to the federal government for granting the state's citizens dividends of democracy via the MSME Clinics and other similar initiatives dispersed around the region. Namadi called the initiative a unique chance for operators in the state's small business sector and encouraged both current and prospective entrepreneurs to use the services offered by the clinics. Industry News
  • A whopping one million naira ($620) is now required as processing fee.
  • The purpose of these revisions, according to the SEC, is to increase transparency.

The SEC in Nigeria has suggested an increase in the registration cost for cryptocurrency exchanges from 30 million naira ($18,620) to 150 million naira ($93,000), as part of an update to the regulations that govern platforms providing crypto services.

According to the SEC, the purpose of the proposed amendments was to clarify things and include feedback from those involved in the business, “particularly with regard to the recent engagements with the CBN [Central Bank of Nigeria].” 

Significant Hike

On Friday, March 15, 2024, the Nigerian SEC proposed revising the regulations that it had first published in May 2022, which applied to all providers of crypto and digital assets. The application price for digital asset exchanges, offering platforms, and custodians has been increased from 100,000 naira ($62) to 300,000 naira ($186) under the revised regulations.

Moreover, a whopping one million naira ($620) is now required for processing, up from 300,000 naira ($186). Also, a similar 400% increase from 30 million naira ($18,620) to 150 million naira ($93,102) is the registration cost.

The purpose of these revisions, according to the SEC, is to increase transparency and integrate feedback from relevant parties in the sector. Furthermore, they embrace insights acquired from previous meetings with the Nigerian Central Bank.

Some have questioned the 500 million naira ($310,343) paid-up capital requirement, even though the SEC claims that industry stakeholders contributed to the proposed adjustments. They claim that local enterprises would be disadvantaged due to this hefty cost, while foreign corporations would mostly benefit.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.