Business

Making Sense of The CBN Ban On Cryptocurrency In Nigeria

When the Central Bank of Nigeria announced Is New Regulatory Restrictions On the use of cryptocurrency in Nigeria, it left a lot of people scratching their heads as to what exactly the apex bank is seeking to achieve.

Calling this a ban actually sounds quite simplistic as the CBN cant really stop individuals from using cryptocurrency in this modern, interconnected global world, what it has done on Friday is to order Nigerian banks to close all cryptocurrency-related accounts. It has also barred financial institutions from facilitating cryptocurrency payments in the country.

Even though the circular of February 5 has sparked a lot of reactions, the CBN makes it clear that its recent restriction is not new, but only a reminder of the earlier circular that was dated January 2017. In that memo issued in 2017, the bank had said digital currencies such as bitcoin, litecoin, and others are largely used in terrorism financing and money laundering since most transactions are executed virtually. The regulator bank had also warned that such currencies are not accepted as legal tender in Nigeria.

Also Read: Find Out How to Link Your NIN With Your SIM Card Across All Networks

According to the CBN, its latest position on cryptocurrency is not an outlier “as many countries, central banks, international financial institutions and distinguished investors and economists have also warned against its use.”

The CBN lists some of these countries as China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Saudi Arabia, Nepal, Cambodia, among others.

These countries “have all placed certain level of restrictions on financial institutions facilitating cryptocurrency transactions,”

The CBN says that crypto use is so opaque that it has become well-suited for “conducting many illegal activities including money laundering, terrorism financing, purchase of small arms and light weapons, and tax evasion..in fact, the role of cryptocurrencies in the purchase of hard and illegal drugs is well known.”

The CBN also highlighted extreme price volatility of cryptos. “Bitcoin, the best known cryptocurrency, hit a record high of $42,000 per unit on January 8, 2021 and sank as low as $28,800 about two weeks later. This is far greater volatility than is found with normal currencies,” the regulator explains.

Business

Unity Bank and Providus Bank are merging Amidst Ongoing Reforms

The Unity Bank and Providus Bank merger has been approved by the Supreme Court, clearing the final legal hurdle. The combined bank will operate as Providus-Unity Bank (PUB).

The long-awaited merger between Unity Bank Plc and Providus Bank Limited has finally cleared its last major hurdle after the Nigerian Supreme Court dismissed the final legal challenges against the deal and approved the transfer of Unity Bank’s assets and liabilities.

The ruling comes after regulatory approval from the Central Bank of Nigeria (CBN) and overwhelming support from shareholders of both banks, effectively paving the way for the consolidation to move into its implementation phase.

The merger is part of efforts to create a stronger financial institution that meets the CBN’s recapitalisation requirements for banks with national licences.

With the legal process now concluded, the combined entity is expected to operate under the name Providus-Unity Bank (PUB). While the banks have not yet released a detailed transition timetable, official documents and statements provide a fairly clear picture of what customers can expect.

Mergers are designed to create stronger, more stable financial institutions, not to liquidate them.

Unity Bank brings a massive retail footprint and deep roots in agricultural financing, while Providus Bank contributes an advanced digital infrastructure and robust corporate banking systems.

Combined, the enlarged bank boasts an asset base projected to exceed ₦2 trillion and a deposit base of over ₦1.2 trillion. Your funds remain fully intact and accessible. Behind the scenes, IT teams from both banks are working to integrate their banking systems.

If any account number changes become necessary in the future, often to resolve rare instances where customers at both banks share identical account numbers, the bank will notify you directly well in advance.

Business

Nigeria remains the World Bank’s third-largest borrower with $18.5bn

Nigeria remains the World Bank’s third-largest borrower, with $18.5bn in debt exposure, as fresh data show the country’s reliance on concessional loans continues to rise amid economic reforms and infrastructure funding needs.

Nigeria has remained the third-largest borrower from the World Bank’s International Development Association (IDA), with the country’s debt exposure now standing at $18.5 billion as of March 31, 2026.

Fresh figures contained in the IDA’s March 2026 financial statements showed that Nigeria’s exposure dropped slightly from the $18.7 billion recorded in December 2025, representing a decline of about $200 million within three months.

Even with the slight quarterly drop, Nigeria’s debt to the World Bank has continued to rise on a yearly basis. The latest figure is about $1.2 billion higher than the $17.3 billion exposure recorded in March 2025, showing a 6.9 per cent increase over one year.

The new ranking places Nigeria behind Bangladesh and Pakistan among countries with the highest borrowing from the World Bank’s concessional lending arm. According to the report, Bangladesh remained the largest borrower with $22.7 billion exposure, while Pakistan followed with $19.2 billion. Nigeria came third with $18.5 billion.

Nigeria alone accounts for around eight per cent of the institution’s total loan portfolio and roughly 13.3 per cent of the combined exposure of the IDA’s ten largest borrowers.

The report further showed that the 10 largest borrowing countries account for about 60 per cent of the World Bank’s concessional lending exposure globally.

Nigeria’s rising exposure highlights the country’s growing dependence on multilateral financing to support infrastructure projects, social programmes, economic reforms and budget support amid ongoing fiscal pressures.

The Federal Government is also in talks with the World Bank for another fresh loan facility valued at $1.25 billion. If approved, total World Bank loan approvals secured by Nigeria since President Bola Ahmed Tinubu assumed office in May 2023 could rise to around $10.6 billion.

Business

NCC orders Telco’s To compensate subscribers for poor network service

The Nigerian Communications Commission (NCC) has instructed Mobile Network Operators (MNOs) to make things right for customers when the network quality in certain areas doesn’t meet the expected standards.

This directive was shared in a statement released on Sunday by Nnenna Ukoha, who leads the Public Affairs Department. The statement emphasized the Commission’s firm view that customers shouldn’t have to bear the entire brunt of service problems if operators aren’t meeting the required service delivery benchmarks.

Part of the statement said “Under this directive, erring operators will compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs).
Mobile Network Operators (MNOs) shall be required to pay these compensations for instances of poor quality of service recorded within specified time frames.

The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur.”

Ukoha explained that this directive stems from the Commission’s overall approach to regulation, which prioritizes the consumer right at the heart of Nigeria’s telecommunications landscape. They emphasized that today’s telecommunications services are fundamental to economic activity, social connections, and gaining access to digital possibilities.

“When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system.

While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry,” the statement said.

The Commission has designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards.

“Further to this directive by the Commission to MNOs on compensation to consumers, the Commission is also mandating Tower Companies that own the critical infrastructure for Quality of Service delivery, such as masts, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.