Nigeria’s local currency, the naira, has been ranked among the 10 worst-performing currencies in the world, according to a report by Bloomberg.

Naira Plunges: Among World’s 10 Worst Performing Currencies

The report highlights that five of the worst-performing currencies globally are from Africa, including the Zambian kwacha, Angolan kwanza, and the naira.

The decline in the performance of African currencies has been attributed to several factors, including economic challenges, unstable commodity prices, inflationary pressures, and a lack of dollar liquidity. The report noted that many African economies, heavily reliant on oil exports, are particularly vulnerable to drops in oil prices.

Keonethebe Bosigo, portfolio manager at Mazi Asset Management, commented that while oil prices are a significant factor, the real issue lies in poor currency management and economic imbalances. He explained that for the naira, the problem stemmed from not allowing it to adjust, which led to overvaluation and a subsequent loss of confidence in the currency.

Irmgard Erasmus, an economist at Oxford Economics, also weighed in on the naira’s struggles, citing ongoing issues with liquidity and dollar supply. Despite reforms aimed at liberalising Nigeria’s current account following the election of President Tinubu in 2023, the currency continues to face significant pressure.

“The naira remains undervalued relative to its long-term neutral value due to ongoing issues around liquidity and dollar supply,” said Erasmus. He added that while falling Brent crude prices have made the situation worse, improvements in dollar liquidity could potentially help the naira recover over time.

Erasmus also said that the naira should be trading around £1,100 per dollar in the absence of distortions, compared to its recent close of £1,544/$. However, he warned that without major policy changes and better dollar supply, the outlook for the naira remains uncertain.

The Central Bank of Nigeria (CBN) has announced that it will continue with plans to enforce the controversial cybercrime levy at 0.005% on all electronic transactions under its new 2024-2025 fiscal year guidelines.

CBN to Maintain Controversial Cybercrime Levy at 0.005% in New Guidelines

This levy, which has sparked debate among Nigerians, is mandated by the Cybercrime (Prohibition, Prevention, etc.) Act of 2015, aimed at bolstering the nation’s cyber security infrastructure.

According to the new guidelines, the percentage has been reduced from 0.5%, which was earlier announced in May 2024, to 0.005%.

In the recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document, the CBN reaffirmed its commitment to this charge, requiring banks and other financial institutions to deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

The document stated: “The CBN shall continue to enforce the payment of the mandatory levy of 0.005% on all electronic transactions by banks and other financial institutions, in accordance with the Cybercrime (Prohibition, Prevention, etc.) Act, 2015.”

The leadership struggles currently unfolding at SiBAN (Stakeholders in Blockchain Technology Association of Nigeria) highlight a deeply entrenched issue in Nigerian organisational structures – godfatherism.

Obinna Iwuno, SiBAN Leadership, and the Influence of Godfatherism in Nigeria’s Blockchain Sector – Insights by Adedayo Showemimo

Cabals and godfathers, who wield influence from behind the scenes, have long played a pivotal role in stifling progress and maintaining the status quo in various sectors of Nigerian society. SiBAN, an organisation aimed at promoting blockchain technology and cryptocurrency in Nigeria, is now facing a similar internal battle, threatening to derail the efforts of its president, Obinna Iwuno, and his progressive Board of Trustees, which boasts respected thought leaders and practitioners in the blockchain space such as Rabiu Abdulhameed Jibia, Dania Oluwaseun Narudeen, Emeka Ezike, and Mela Claude Ake.

Godfatherism, a term used to describe the influence of powerful individuals or groups, often without formal titles but with substantial sway over organisational decisions, is not new in Nigeria. This influence can be beneficial when it supports growth and progress. However, more often than not, it is wielded to maintain personal interests, block reforms, and ensure that new, innovative leadership is subdued or removed. This dynamic is seen across political, economic, and even technological sectors, and unfortunately, SiBAN has not escaped its clutches.

Blockchain technology, known for decentralisation and transparency, stands in stark contrast to the centralisation of power represented by godfatherism. The irony is that even in a body like SiBAN, created to foster innovation and decentralisation, old systems of control and suppression still persist. These dynamics are now threatening the leadership of Obinna Iwuno, a progressive leader seeking to drive blockchain and crypto adoption in Nigeria.

Under Obinna Iwuno, SiBAN has made strides toward positioning Nigeria as a key player in the global blockchain space. His leadership has been characterised by a forward-thinking approach that embraces innovation, regulatory collaboration, and engagement with global stakeholders. However, Iwuno’s vision has not come without resistance. The ‘cabals’ entrenched in the organisation – who have enjoyed long-standing influence – are working overtime to undermine his efforts.

In response to the ongoing challenges, Iwuno made a powerful statement, dismissing recent negative blog posts as mere distractions from those seeking to derail progress.

“The recent blog posts are mere distractions aimed at discrediting my leadership and slowing down the progress SiBAN has made in positioning Nigeria in the global blockchain landscape. These attacks are not a reflection of our work, but rather the handiwork of a few who refuse to embrace the change and innovation we represent” he said.

Internal Power Struggles Threaten Growth at SiBAN

Despite the clear vision for growth and innovation, these internal power struggles—largely driven by those who favour maintaining the status quo—threaten to disrupt the work that Iwuno and his team have been undertaking.

These factions oppose the changes that would democratise decision-making, introduce transparency, and bring fresh ideas into the fold. For a technology as disruptive and forward-thinking as blockchain, this resistance is not only ironic but also counterproductive to the mission of the organisation.

Describing some of the detractors as ‘sore losers’, SiBAN President, Obinna Iwuno stated, “Some of them are also sore losers from the last election, like Senator Ihenyen, the then incumbent president whom I defeated in the last elections. Instead of conceding defeat and acting honourably in advancing SiBAN, he has remained bitter. Someone like Chris Ani is actually an unregistered member of SiBAN and has attempted to reduce the association to a WhatsApp group.”

In a sector driven by innovation, rapid development, and decentralisation, the very presence of godfatherism is a hindrance. It breeds conservatism, discourages risk-taking, and suffocates new ideas. The old guard, often invested in their own influence, may not fully appreciate the potential for growth that blockchain offers Nigeria, choosing instead to prioritise their own grip on power.

Many of those opposing Iwuno’s leadership appear to fear losing control over the resources and decision-making processes within SiBAN. In this respect, their actions mirror those seen in other Nigerian sectors, where powerful interests work to suppress new leadership that threatens their dominance. Unfortunately, in their quest to protect their vested interests, they risk stalling SiBAN’s progress and, by extension, Nigeria’s potential leadership role in the African blockchain space.

For Iwuno and his team, the path forward will not be easy. The key lies in fostering unity, transparency, and collaboration, even as detractors continue to undermine their efforts. Public accountability and engagement with stakeholders, both locally and globally, can help to highlight the importance of the work being done under Iwuno’s leadership.

It is also crucial for Iwuno to continue building partnerships with regulators, the Nigerian government, and international organisations. The broader blockchain community is watching SiBAN, and signs of internal dysfunction could damage Nigeria’s credibility in this growing industry.