Luno, a crypto exchange platform, plans to reintroduce naira deposits and withdrawals on its platform in November, the company announced via email sent to users.

The move signals a defining moment in Nigeria’s cryptocurrency market predicament, which has seen exchange platforms restricted to Peer to Peer (P2P) services only.

“You will be able to deposit funds to and from the Luno platform using vouchers purchased and redeemed through a trusted third party provider,” Luno said.

In February, the Central Bank of Nigeria (CBN), had banned regulated financial institutions from carrying out crypto-related transactions, dampening the boom that had put Nigeria at the top of crypto market.

As of December 2020, Nigeria traded more than $566 million worth of bitcoin, thus becoming the world’s second largest peer-to-peer (P2P) bitcoin market after the U.S., which traded $3.75 billion, according to data from crypto exchange platform Paxful.

The ban has narrowed Nigeria’s crypto market to P2P, hampering the sustainability of this growth. Recently, the CBN embarked on Central Bank Digital Currency (CBDC) development project. The CBDC called eNaira has been launched in a push to provide alternative to cryptocurrency that has increasingly become a better choice for Nigerians. Local banks have also been automatically onboarded to facilitate fast and reliable transactions for users.

The financial regulator had said that the cryptocurrency boom is a threat to Nigeria’s financial sector and national security as it is being used by criminals to facilitate money laundering and to sponsor terrorism.

Luno, alongside other exchanges, have been working to provide alternatives to the naira deposits and withdrawals that banks offer. Given the CBN ban, the exchange said using a “trusted third party” to facilitate such transactions is the only choice for now.

“We believe that this is the safest and easiest-to-use solution currently available to our customers in Nigeria and look forward to you experiencing it for yourselves,” the exchange said.

The launch of eNaira is expected to temporarily capture a section of Nigerians, who want to experience the CBDC service. This is because, compared with cryptocurrency, the eNaira is not profitable. Furthermore, the eNaira guidelines issued by the CBN have transaction limitations that huge fund merchants don’t want to reckon with.

However, the trade volume decline in Nigeria’s cryptocurrency market, which was induced by the CBN’s ban, emphasizes the need for the naira deposits and withdrawals gap to be filled, even without the help of the banks.

It is not clear who the “third party” mentioned by Luno is. What is clear is that the exchange’s move, if successful, may be the antidote the Nigeria’s crypto market needs to totally break free from the central bank’s shackles.

But Luno said it may come with a price: “The return of Naira deposits and withdrawals may cause significant price volatility, with the release of pent-up customer demand to buy and sell cryptocurrency causing unusual market behavior that could last for several weeks.”

Nigeria has in the budget money to fight malaria but some foreign creditors have offered Nigeria $200 million loan more: “The Senate has frowned at a plan by the federal government to borrow $200 million to purchase mosquito nets and other ancillary medical therapies to prevent malaria”.  And the government wanted to take it. Then, some reasonable parliamentarians asked questions:

“This is unacceptable. We should be able to put our feet down when dealing with these donor agencies or creditors as regards loans to be taken and what it should be expended on. This is a clear case of money and jobs for the boys by creditors luring you for loans and railroading you on what it should be spent on.

“Washington or whatever creditor offering the loan, should stop giving us money with one hand and taking it back with another hand through railroaded spending,”  Ibrahim Oloriegbe (APC, Kwara).

You know what is happening: they will never give you the loan to buy from mosquito nets producers in Kano, Lagos, Aba and Uyo. They will give you the money and you have to import expensive and overpriced products from abroad. That is one of the major reasons I hate these loans – you never get market value because you take whatever you are given.

 Ibrahim Oloriegbe, keep speaking and please do not allow this loan to go through unless there is a clause that Nigeria can take the $200 million and buy from local companies, not exclusively foreign firms whose governments/funds are providing the loans.

I write to stand with the good people of Sudan after the military punted their evolving democracy with a coup. I stand with the oil workers, doctors, pilots, carpenters, market women, and all Sudanese as they oppose these soft-target soldiers. Africa has security issues, and if these soldiers are bored, there are many battlefields available to engage them. Yes, government houses are not the destinations in this age.

Coup is evil. It remains like yesterday when Prof Obah, a Vice Chancellor when I was in FUTO, sent a directive to me that the Students FM Radio Station (just an engineering students thing) we had designed and installed to communicate within campus, has been mandated by General Abacha to be taken down. I could not believe myself. Imagine if they have done the unthinkable: came in and arrested us with no trace. That was my campaign manifesto as Director of Research: I will give FUTO a radio station – and we delivered. The finest Director of Social, Osita Njokubi, P.Eng, C.Eng, made it more popular than the state radio station that non-students were tuning in.

So, khaki boys are NEVER the solution irrespective of the mess from politicians. Sudan took down the last leader, Omar al-Bashir, because of a loaf of bread. These coup plotters should expect fire because this is more than bread – and they will be down.

We stand with Sudan – and peace in the land.

The Tekedia Capital Q4 2021 Investment Cycle is currently active; register for access to the deal flow – and join our members and invest in Africa’s future promising startups. A membership fee which covers four investment cycles is $1,000 or N550,000. The Demo Day will take place on Saturday, Oct 30 with all the startups presenting.  We’ve got great companies, from one which processes $10 million monthly transactions in Nigeria (never raised money) to more. To join us, begin here

Blue Origin and Sierra Space announced this week plans for Orbital Reef, a “commercially developed, owned, and operated space station” to be built in low Earth orbit.  More so, the companies said the Orbital Reef will run a “mixed use business park” in space. The park will be ready within the decade..

Blue Origin and Sierra Space announced on Tuesday plans for Orbital Reef, a “commercially developed, owned, and operated space station” to be built in low Earth orbit. The station will start operating in the second half of this decade.

The companies said the Orbital Reef will be operated as a “mixed use business park” in space. With shared infrastructure that efficiently supports the proprietary needs of diverse tenants and visitors, and will feature a human-centered space architecture with world-class services and amenities that is inspiring, practical, and safe.

“The station will open the next chapter of human space exploration and development by facilitating the growth of a vibrant ecosystem and business model for the future,” the companies said.

But I have one question: who will collect the tax in Orbital Reef since I am not sure the US or Nigeria will claim jurisdictional control for tax purposes in space?. In other words, if Jeff Bezos (Amazon founder) finishes this thing and decides to move Amazon headquarters to space, what happens to Amazon corporate tax?

Tax attorneys, provide guidance please.

Orbital Reef: Blue Origin Announces Plan to Build A Space Station

Comment on LinkedIn Feed

A nice comment on LinkedIn, by an expert, sharing below

A number of international conventions readily come to mind here. There is the international law principle of Common Heritage of Mankind to the effect that some territories, including space, are for all mankind and cannot be claimed by a nation or entity.

There is the Outer Space Treaty which came to force in January, 1967. It contains a whole lot of interesting provisions, e.g. that space shall be freely used and exploited by all nations; that no nation shall claim sovereignty over any part of the outer space or celestial bodies; states are responsible for their own activities and those of entities originating from such states. In that case, the country of origin of a space dwelling/ trading company takes responsibility, including tax regulations– my submission.

There is also the Declaration on Future Generations which, amongst others, emphasises the preservation of the common heritage of Mankind as well as the interest of Future Generations.

You may also wish to avert your mind to the issue of Mining of Celestial Bodies.
The US has enacted the Commercial Space Launch Competitiveness Act in 2015. This gives US citizens and companies the right to explore and exploit space resources but no sovereignty rights granted. Pause.