In a landmark legal action, Nigerian cryptocurrency advocate James Utudor has filed a lawsuit against the Nigerian government, challenging its restrictions on digital assets such as Bitcoin (BTC) and stablecoins. The suit aims to lift the ban on cryptocurrency exchanges and ensure unrestricted access for all Nigerians.
Lawsuit Seeks to Protect Digital Asset Rights
Filed on August 9, the lawsuit names several high-profile defendants, including the Nigerian presidency, finance minister, attorney general, Central Bank of Nigeria, Securities and Exchange Commission (SEC), Economic and Financial Crimes Commission (EFCC), Nigerian Police Force, National Information Technology Development Agency (NITDA), and the Nigerian Communications Commission (NCC).
Utudor argues that the current restrictions infringe upon Nigerians’ fundamental rights to own, use, and trade digital assets. The lawsuit highlights how these restrictions limit access to crucial financial tools, such as Bitcoin and stablecoins, which are seen as vital for protecting savings from inflation and facilitating international transactions.
Government Restrictions and Their Impact
Since the beginning of 2024, Nigerian authorities have enacted measures to limit cryptocurrency activities. These measures have included targeting popular exchanges like Binance, accusing them of facilitating activities detrimental to the local currency and evading taxes. Officials claim that these global platforms have contributed to the depreciation of the naira and have not fulfilled their tax obligations despite generating significant revenue from Nigerian users.
Call for Bitcoin to Be Recognized as a Commodity
Utudor’s lawsuit also seeks to have Bitcoin officially recognized as a commodity, which would potentially alter its regulatory treatment in Nigeria. By challenging the current legal framework, Utudor hopes to reaffirm the rights of Bitcoin and USDT holders and secure a more favorable regulatory environment for digital assets.
The lawsuit represents a significant pushback against government-imposed restrictions and reflects the growing sentiment among Nigerian crypto enthusiasts that digital assets are essential for financial stability and economic opportunity in the face of currency devaluation and foreign exchange shortages.
