Cryptocurrency’s Potential in Nigeria: A Call for Regulation and Adoption
Professor James Chinedu Ihemeje, a pioneer in cryptocurrency finance at Michael Okpara University of Agriculture, Umudike, has delivered a compelling argument for the adoption and regulation of cryptocurrencies in Nigeria. In his 61st inaugural lecture, titled “Cryptocurrency Investment in Nigeria: Stabilising future value of money for Sustainable Development,” Professor Ihemeje addressed misconceptions surrounding cryptocurrencies, advocating for their integration into government transactions to bolster their acceptance and usage among Nigerians. He emphasized the need for a robust regulatory framework by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to facilitate the responsible and beneficial use of cryptocurrencies within the country’s financial ecosystem.
Professor Ihemeje sought to clarify the distinction between cryptocurrencies and Ponzi schemes, highlighting the legitimate potential of cryptocurrencies as a tool for economic stability and growth. He cautioned Nigerians against falling prey to online scams, emphasizing the importance of vigilance and informed decision-making in the digital currency space. He dismissed fears surrounding cryptocurrency’s potential to displace traditional paper money and cause job losses within financial institutions, citing the coexistence of both systems in developed economies like the United States. He posited that cryptocurrencies, far from being a threat, could serve as a stabilizing force within the Nigerian economy.
Addressing the perceived apprehension within the CBN regarding the implications of cryptocurrencies for its operations and personnel, Professor Ihemeje argued against such anxieties. He reiterated the potential for coexistence between traditional and digital currencies, emphasizing the opportunity for cryptocurrencies to complement and enhance existing financial systems. He urged the CBN and SEC to embrace a regulatory approach rather than resistance, allowing for the controlled flow of cryptocurrencies within the Nigerian market. He underscored the decentralized nature of cryptocurrencies, governed by blockchain technology rather than any single entity, and stressed the importance of a legal framework to address potential abuses and ensure responsible usage.
Professor Ihemeje’s call for regulation stems from the recognition that a clear legal framework is essential to protect consumers and investors while fostering innovation and growth within the cryptocurrency sector. He advocated for government adoption of cryptocurrencies, emphasizing the potential for their use in official transactions to further encourage their broader acceptance among Nigerians. This approach, coupled with a robust regulatory framework, would enable authorities to address any misuse or criminal activity associated with cryptocurrencies, safeguarding the integrity of the financial system.
The Vice Chancellor of Michael Okpara University, Professor Muduebibisi Iwe, expressed his interest in policies aimed at stabilizing the Naira and the Nigerian economy, aligning with Professor Ihemeje’s focus on the potential of cryptocurrencies to contribute to economic stability. This convergence of perspectives underscores the growing recognition of the need to explore and evaluate innovative financial instruments like cryptocurrencies to address economic challenges and promote sustainable development.
Professor Ihemeje’s inaugural lecture serves as a timely and important contribution to the ongoing dialogue surrounding the role of cryptocurrencies in Nigeria’s financial future. It emphasizes the need for balanced regulation that fosters innovation and protects consumers while acknowledging the potential benefits of integrating cryptocurrencies into the national economy. By dispelling misconceptions and advocating for informed engagement with this emerging technology, Professor Ihemeje has set the stage for a more nuanced and productive discussion about the future of finance in Nigeria. His insights provide a valuable framework for policymakers, regulators, and the public to navigate the complexities of cryptocurrency adoption and harness its potential for economic growth and stability.
