Legal Action Against Nigeria’s Cryptocurrency Restrictions
James Otudor, a prominent advocate for Bitcoin in Nigeria, has initiated legal proceedings against the government due to its restrictive policies on the ownership, utilization, and trading of Bitcoin, Tether (USDT), and other cryptocurrencies. This announcement was made in a statement released on August 9.
A Call for Financial Freedom
Otudor emphasized that this legal challenge serves as a peaceful demonstration for the rights to financial freedom and inclusion. He stated, “As a nation that upholds human rights, we must protect and ensure the rights of individuals who own and utilize Bitcoin, USDT, and other digital currencies.”
Context of the Lawsuit
This lawsuit comes at a time when Nigeria has been tightening its regulations surrounding the cryptocurrency market. Notable trading platforms, such as OKX, have ceased operations in the country, and the Nigerian naira has been delisted from various crypto exchanges that function within its borders.
Targeted Officials and Regulatory Bodies
The legal action names several influential government figures and regulatory institutions, including the President of Nigeria, the Minister of Finance, the Attorney General, and entities like the Central Bank of Nigeria (CBN) and the Nigerian Securities and Exchange Commission (SEC).
Furthermore, the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, the National Information Technology Development Agency (NITDA), and the Nigerian Communications Commission (NCC) have also been included as defendants in this case.
Violation of Rights Allegations
According to Otudor, the Nigerian government has infringed upon the basic human rights of its citizens by unfairly targeting those seeking to buy, use, or trade in digital assets. Maurice Oru Ebam, the attorney representing Otudor, pointed out that “Section 43 of the Nigerian Constitution guarantees every citizen the right to acquire and own property throughout Nigeria. This right encompasses digital assets, which are crucial for ensuring financial inclusion and economic stability.”
Legal Basis for the Case
The lawsuit argues that the government’s actions, which include compelling telecommunications companies to block access to cryptocurrency platforms, contravene Article 14 of the African Charter on Human and Peoples’ Rights. This provision protects property rights, stating that such rights may only be restricted for reasons related to public necessity or community welfare.
Importance of Digital Assets
Otudor highlighted the vital role of Bitcoin and other cryptocurrencies in safeguarding personal savings against inflation and enabling seamless international transactions, particularly given the depreciation of the naira and the current shortages in foreign currency.
Requests from the Court
Otudor is urging the court to promptly lift the bans on all cryptocurrency exchange platforms, demanding that Nigerians be granted unrestricted access. He has also called for a ruling that recognizes the infringement of the rights of Bitcoin, USDT, and other digital asset users in Nigeria as unlawful and unconstitutional.
Push for Pro-Crypto Regulations
Additionally, Otudor seeks the creation of supportive regulations that would officially recognize Bitcoin and classify it as a commodity within the Nigerian financial framework.
