A prominent Nigerian bitcoin advocate has initiated a groundbreaking legal challenge against the government’s restrictions on digital assets. James Utudor, a leading proponent of cryptocurrency, has filed a lawsuit seeking to dismantle the current ban on owning, using, and trading cryptocurrencies in Nigeria.
His legal action aims to protect fundamental rights and ensure unrestricted access to cryptocurrency exchanges for all Nigerians.
The lawsuit names a range of government bodies as defendants, including the Nigerian presidency, finance minister, attorney general, Central Bank of Nigeria, Securities and Exchange Commission, Economic and Financial Crimes Commission, Nigerian Police Force, National Information Technology Development Agency, and Nigerian Communications Commission. Utudor contends that the measures imposed by these entities violate the rights of digital asset holders and those wishing to own such assets.
Since early 2024, Nigerian authorities have introduced stringent measures to limit cryptocurrency trade and usage, targeting major exchanges such as Binance. The government has accused these platforms of facilitating illegal activities that contribute to the devaluation of the local currency and of evading taxes despite generating substantial revenue from Nigerian users.
Utudor’s lawsuit argues that these restrictions hinder Nigerians’ ability to use essential financial tools to hedge against inflation. He is seeking a court ruling that recognizes Bitcoin (BTC) and USDT as commodities and lifts the blockade on cryptocurrency exchanges. This legal action aims to guarantee that all Nigerians have the freedom to engage with cryptocurrencies without governmental interference.
In a social media statement, Utudor emphasized that Bitcoin and other digital assets are crucial for safeguarding savings from inflation and facilitating international transactions, especially amidst the naira’s devaluation and foreign exchange shortages. He believes the lawsuit is vital for addressing these economic challenges and protecting Nigerians’ financial rights.
The legal challenge has received considerable backing from the Nigerian crypto community, which views it as a pivotal effort to contest the government’s increasingly restrictive policies on digital assets.
Should the lawsuit succeed, it could lead to the removal of current restrictions, allowing Nigerians to freely own, use, and trade cryptocurrencies, and potentially establish Bitcoin as a recognized commodity within the country.
