More than two weeks after the ban on cryptocurrency in Nigeria, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have agreed to collaborate and conduct research with a view to finding ways of regulating the Cryptocurrency market.

They said this at a virtual lecture organized by the Association of Capital Market Academics of Nigeria (ACMAN) in Abuja on Sunday, the News Agency of Nigeria (NAN) reported.

ACMAN is a network of researchers in capital markets, especially lecturers in the country’s universities.

Timi Agama, Head of Department, Registration, Exchanges, Market Infrastructure and Innovation Department of SEC described the cryptocurrency market as an air that could currently not be caged or regulated.

He noted that cryptocurrency was a market of about two trillion dollars which could not be ignored. According to him, the world cannot be moving forward and we will be static.

Agama said that although the SEC or the capital market would not accommodate or encourage any fraudulent practices that allowed for money laundering, cryptocurrency was a market to look into.

“There is a lot of investment moving into the cryptocurrency market and the tendency is that it will reduce the amount of investments in the stock market.

“Part of the desire of the SEC even in the future is to provide a regulatory framework that will take care of all these challenges that we have seen internationally and the entire world is grappling with in terms of cryptocurrency and digital assets.

“For us at the SEC and capital market, it is something to look at, the world cannot be moving forward and we will be static, no.

“It is important for us to review, understand, appreciate and introduce regulations that will guide the movement of the market in this direction.

“A market that has opportunity for ICOs, derivatives, is not a market we can ignore.

“ It is our desire that we do more work, collaborate as regulators and analyze to make sure that we provide a level playing field where Nigerians, international investors and whoever is interested in this space will be comfortable and happy.

“I hope that in doing that, we are going to be able to drive foreign portfolio investment, Foreign Direct Investment (FDI) into this country and build our capital market,’’ he said.

Kevin Amugo, Director, Financial Policy and Regulation Department of the CBN, said the ban was to enable it to work together with stakeholders in addressing the anonymity of the technology.

Mr. Amugo said the CBN would continue to develop policies that would optimize the opportunities of the financial technology industry and promote the economic landscape of the country.

He said that consumer protection was a huge challenge in the cryptocurrency market as it was speculative and no economic fundamentals drove its price.

“The committee on cryptocurrency headed by the National Security Adviser and members are EFCC, NFIU, SEC, NAICOM and all regulators to strategize and come up with a national position not a monetary policy position.

“We have issued our initial draft but COVID-19 impeded our efforts to conclude our actions.

“Because of interests crypto has regenerated, I think it is high time we reconvened and ensure that we take a national position, so that what is issued is a national position not a CBN’s or SEC’s position.

“We are not stifling fin-tech operations, CBN has been proactive in granting licenses to fin-tech operators.

“The way forward for us will be continuous engagement, ongoing consultations and academic research.

“We are engaging internationally and locally to ensure that we come out with a harmonized and implementable position,’’ he said.

Gbite Oduneye, Chief Executive Officer of the Eagle Global Market (EGM) Lagos, appealed to the CBN and SEC to look at ways to safeguard against money laundering in the market.

Mr. Oduneye appealed to regulators to find ways to regulate the cryptocurrency market as there were prospects in it.

“We understand the difficulties in the market but the regulators must organize and look for ways, organize and make people operate the way they want in the market.

“Every new innovation will come with a number of difficulties but we have the innovative minds, great regulators that can enable us to take advantage in this,’’ he explained.

This development reveals that the CBN did neither research nor consultation with stakeholders before it made the decision to ban the operation of crypto exchanges.

In reaction, analysts have described the decision as “irrational,” saying that it tells terribly about the regulator.

Everyone knows that I am a fan of ex-President Yar’Adua. In 2017, I delivered a major speech in the Yar’Adua Center on the invitation of the trustee. He was a compassionate national  leader in Nigeria . He was the President who voted for more money, per year, to develop Niger Delta than any government in history. It was so big that after his death, the government reduced it. His ascension was brief and Nigeria lost a good man.

BusinessDay has the full data on how our presidents have performed since 1999 – Yar’Adua ran the table; President Buhari has not even started!: “At no point in its 60-year history has Nigeria’s economy expanded slower than its population for a longer period than between 2015 and 2020, an indictment on President Muhammadu Buhari who has led the country in that time. With data from the National Bureau of Statistics (NBS) showing a 1.9-percent contraction in 2020, ……”

Before you throw political attacks, the newspaper used government data, mainly the National Bureau of Statistics for this piece. This is data talking.

Consider the labor market where we have four job seekers, Mr. Dollar, Mr. Euro, Mr. Pounds, and Mr. Naira. They supply their time/service for wages. The wages they earn will enable them to buy consumables for their respective households. Assume everyone is 25 years old and same sex. They all got employed by one firm (the global economy) to do the same job and were provided equal resources.

At the end of the month, to their surprise, each earned differently for the same job description. Mr. Naira, who received the least, protested to the employer thus, “Why should I be paid the poorest wage when we all have the same JD and worked equal hours. I demand an equal wage with Mr. Pounds!”

The employer smiled as he brought out a sheet of paper from his drawer and slides it across the table towards Mr. Naira. “Yes, the four of you were employed under the same terms and conditions, however, the major determinant of your wage is your productivity and you know that. Please read out the daily output for each employee.” Mr. Naira: “Mr. pounds 1.3856kg, Mr. Euro 1.2195kg, Mr. Dollars 1kg, and Mr. Naira 0.0026kg.” The employer added, “1kg equals 1 dollar, therefore there is no limit to what you could earn according to your output. So, Mr. Naira, could you tell me the just wage for all employees?” Mr. Naira with watery eyes read out the respective wages, “Mr. Pound, 41.57 dollars. Mr. Euro, 36.59 dollars. Mr. Dollars, 30 dollars. And Mr. Naira, 0.08 dollars.”

This piece was inspired by a picture I saw on social media where the face values of 100 Pounds Sterling, 100 Euro, 100 Dollar, and 100 Naira were contrasted with their intrinsic value (market value). They all fetched different baskets of goods and services in the market. The Naira could only buy two Gala (a popular snack in Nigeria). This depicts the reality in our individual and national lives. If we consider productivity to be a sole function of time, and time, a function quality education, experience, skills, and training, then we will understand the reason behind the differences in value whether for currencies, national incomes and our individual lives.

So, what value do you command in the marketplace? How are you investing your time? You desire to soar higher, and this is only possible when you acquire greater capacity to produce greater outputs. First you must be mad about your current level and seek a different kind of education, training, skill, and experience. There is a new renaissance called the Tekedia Institute that has been transforming ideas into products, accelerating leadership ascents, imparting businesses to thrive through uncommon business insights. 

So, if you want to innovate, grow and transform, capture emerging opportunities, and digitally evolve your business or job, turn disruption into a competitive advantage, master the concepts of building category-king companies and advance; you must enroll in the Tekedia Mini-MBA 4th Edition ASAP!

“A little learning is a dangerous thing; drink deep or taste not the Pierian spring: there shallow thoughts intoxicates the brain.” – Alexander Pope, 1709

In conclusion, to be the best, to increase your intrinsic value with respect to your face value, you must learn from the best. Join Prof Ndubuisi Ekekwe, as lead anchor, leading other great and accomplished minds around the globe in making history at the Tekedia Institute, USA.

See you at the top!

This is the schedule for Tekedia Live (zoom) for the week of Feb 22. The zoom links and everything are in the Board. The three faculty members coming are:

• Tue, Feb 23 | 12noon – 1pm WAT | Agile Methodology – Bola Adesope, Sonnet Insurance

• Thur, Feb 25 | 12noon – 1pm WAT | Design Thinking – Aderinola Oloruntoye, Workforce Group*

• Sat, Feb 27 | 7pm – 8.30pm WAT | General Topic, Fintechnolization Playbook (MTN, Mastercard, MPESA, Paystack) – Ndubuisi Ekekwe

*pictured