OPINION
Virtual Currency Operations, Nigeria and Global Best Practices

By Zakari Mijinyawa
In its Updated Guidance for a Risk-Based Approach for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), released in 2021, the Financial Action Task Force (FATF) advised that in identifying, assessing, and taking effective action to mitigate their money laundering and terrorism financing risks, countries should apply preventive measures such as a better understanding on how they hurt the economy.
FATF is a New York-based independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorism financing, and the financing of proliferation of weapons of mass destruction.
Its recommendations are recognised as the global anti-money laundering (AML) and countering the financing of terrorism (CFT) standards. One of the most eye-catching recommendations in the updated document is for domestic cooperation and information exchange between the supervisors of the banking, securities, commodities, and derivatives sectors and the VASP sector. FATF recommended cooperation among law enforcement, intelligence, financial intelligence unit and VASP regulators to effectively monitor the VAs and VASPs playing in the sector.It also stated that regulators of VAs and VASPs should also consider liaising with other relevant domestic regulatory and supervisory authorities to secure a coherent interpretation of VAs and VASPs’ legal obligations and to promote a level playing field, including between VASPs and between VASPs and other obliged entities such as financial institutions and Designated Non-Financial Business and Profession.
It emphasised that such coordination is particularly important where more than one regulator is responsible for supervision (e.g., where the prudential supervisor and the AML/CFT supervisors are in different agencies or separate divisions of the same agency).
According to the guidance, it also is particularly relevant in the context of VASPs that provide various products or services or engage in different financial activities that may fall under the purview of different regulatory or supervisory authorities within a particular jurisdiction. Crucially, it noted that multiple sources of guidance should not create opportunities for regulatory arbitrage, loopholes, or unnecessary confusion among VASPs. “When possible, relevant regulatory and supervisory authorities in a jurisdiction should consider preparing joint guidance,” it said.
Interestingly, this was exactly what the Nigerian government did when it decided to make further concerted efforts to safeguard Nigeria’s foreign exchange market and combat speculative activities. Central to those efforts is a multi-pronged and multi-agency approach, which saw the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria (CBN) joining forces to address challenges impacting the nation’s economic stability.
The collaborative approach to tackle these infractions involves a coordinated effort with key regulatory and law enforcement agencies, including the Securities and Exchange Commission (SEC), the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).
FATF suggested that financial regulators should communicate their expectations of VAs and VASPs’ compliance with their legal and regulatory obligations and may consider engaging in a consultative process, where appropriate, with relevant stakeholders. Such guidance may be high-level requirements based on desired outcomes, risk-based obligations, and information about how regulators interpret relevant legislation or regulation or more detailed guidance about how VAs and VASPs might best apply particular anti-money laundering and counter-terrorism financing controls.
A strong argument can be made that, when the CBN initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility Cap, it was in actual sense implementing the provisions of the FATF guidance. FATF also emphasised the need for public authorities to share risk information, where possible, to better help inform the risk assessments of VASPs. “The type of information relating to risks in the VA space that the public and private sectors could share include typologies and methodologies of how money launderers or terrorist financiers misuse VAs and VASPs, a particular VA mechanism over another (e.g., VA transfer or exchange activities versus VA issuance activities in the context of money laundering or terrorist financing) or VAs more generally.”
The guidance also suggested that regulators and other competent authorities consider the guidance and input of virtual asset technical experts to develop a deeper understanding of the relevant business models and operations of VAs and VASPs, their potential exposure to money laundering and terrorism financing risks, as well as the risks associated with particular VA types or specific covered VA activities and to make an informed judgment about the mitigation measures in place or needed.
Having engaged the world’s biggest crypto trading platform, Binance, the Nigerian government continued its engagement with other platforms by enteringinto a three-year exclusive IPR (intellectual property right) agreement with Developing Africa Group to launch a national wallet for Nigeria. The engagement led to the selection of Koibanx and Algorand Blockchain as the payment platform and protocol on which the project will be built.
Without a doubt, ONSA has been at the forefront of FATF’s recommendation that countries should consider how they might share information with the private sector to help the private sector better understand the nature of law enforcement information requests or other government requests for information or to help shape the nature of the requests as regards VAs and VASPs.
As events of recent weeks have shown, Nigeria is in the good company of countries that have taken the regulation of VAs and VASPs seriously, including the US, Italy, Japan, Sweden and Finland.
In Italy for instance, service providers related to VAs are required to be listed in a special section of the register held by “OrganismodegliAgenti e deiMediatori” (OAM). The registration is a precondition for service providers related to VAs to carry out their activity in Italy. Work is currently ongoing to implement the register.
The United States has a comprehensive and technology-neutral regulatory and supervisory framework in place for regulating and supervising “digital assets” for anti-money laundering and countering financing of terrorism that subjects covered providers and activities in this space to substantially the same regulation that providers of non-digital assets are subject to within the existing AML/CFT regulatory framework for financial institutions.
In Nigeria, the SEC is updating its guidelines for crypto service providers to block criminals from engaging with capital markets. The commission said, “The SEC has also developed a new AML/CFT/CPF onboarding manual for licensing/registration and ongoing screening of Digital and VASP Beneficial Owners to ensure that criminals are not registered as operators in the capital market.” It also indicated its readiness to interface with genuine VASPs based on these clear rules and regulations and consult on its proposed measures before its final approvals.
Mijinyawa writes in from Abuja
OPINION
President Bola Tinubu: Establish a National Bureau for Ethnic Relations and Inter Group Unity

By Wilfred Uji
I once wrote an article based on a thorough research that all the states of North Central of Nigeria, Kwara, Niger, Kogi, Benue, Plateau and Nasarawa States, share a great deal of historical relations, resources, ethnicity and intergroup relations. These states have a common shared boarders with common security challenges that can only be effectively managed and resolved from a regional perspective and framework.
The exercise at the creation of states have overtime drawn arbitrary boundaries which in contemporary times are critical security and developmental issues that affects the sub region.
Firstly is the knowledge and teaching of history that can help grow and promote a regional unity and intergroup relations.
As far back as the pre-colonial era, the North Central of Nigeria had a plethora of multi ethnic groups which co-existed within the framework of mutual dependence exploiting indigenous peace initiatives. The diverse ethnic groups comprising of Nupe, Gwari, Gbagi, Eggon, Igala, Idoma, Jukun, Alago, Tiv, Gwanadara, Birom, Tarok, Angas, etc were independent state sovereignties before the advent of British colonial rule by the first quarter of the twentieth century.
Secoundly that British colonialism for economic and political exigencies almagamated all these ethnic groups under the Northern Region with headquarters first at Lokoja and later moved to Kaduna.
The indirect rule policy placed all the traditional political chiefdoms of the sub region under the political supervision, for the convience of taxation and draft labor, under the Sokoto Caliphate.
The indirect rule political structure was not intended to be a game changer that would enforce the dominance and hegemony of the Sokoto Caliphate over the people, land and resources of the sub region.
Thirdly, in the realization of the above, the British colonial state first created the Munchi Province and later the Benue Province as a political and state framework that could accommodate all the ethnic diversity of some of the North Central people.
State creation which ought to allow room for minority representation and expression, over time, has been turned upside down, by some ethnic groups as a vehicle of the exclusion of some minority groups.
For instance, the creation of Benue State in 1976 and Nasarawa State in 1996, does not signify and imply the exclusion of the Tiv and Idoma from Nasarawa State as well as the exclusion of the Alago and Jukun from Benue State.
These ethnic groups, long before state creation, had indigenous roots in all the states of the North Central of Nigeria. Historically, it is misleading and erroneous for these ethnic nationalities to be regarded as tenant settlers in the states where they are located.
The term tenant settlers have been used by the ruling political class of some states of the North Central of Nigeria as a staging point for land grabbing, genocide, land claims and struggles that has created a night mare for the security landscape of the region. In contemporary times, there is no denying the fact that there is an ethnic question in the North Central of Nigeria where there has been a revival of ethnic nationalism by some irredentist groups reinforced by revisionist historians. The ethnic nationalism which on one hand is a cultural revival but on the other promotes a hate agenda, is dangerous and antithetical to the inter group relations and unity of the North Central of Nigeria.
Ethnic hate, the idea that some ethnic nationalities do not belong or have indigenous roots in a state, has been responsible for some of the modern genocide and massacre in the history of modern Nigeria.
For political and security reasons, there is scanty research in this regard, the study of modern genocide backed by state action. Or where such research exist, it is often play down and watered as inter group conflicts and violent hostilities that should be treated with kids gloves and palliatives. This liberal and pessimistic approach to conflict management has been a responsible factor in the decimal reoccurrence of violent ethnic conflicts of the North Central States. The Liberal approach to conflict management, looks at the symptoms instead of the treatment of the disease.
Ethnocentrism is both an African and Nigerian reality that over time and space has been fueled and exploited by the ruling political class and elites. It is one of critical challenge of nation building in Africa that appears to be a curse of a continent and people.
All nations of the world have their share of the nightmare of ethnic and racial bigotry at one point or the other in their national history and transformation.
In the United States of America, it was dubbed the race question in the post emancipation era, the politics of the color line as William Dubios described the racial tension and phenomenon of his prevailing age and society. The race question sparked many reactions including the establishment of societies and organizations for the protection of the African American as well as the defence of the fundamental civil rights of the “American Negro”.
One of such initiative adopted by the State in America which was aimed at the improvement of the welfare and wellbeing of the African American as as his integration into main stream society was the establishment of the Bureau For Freed Men on race relations. The Bureau as a Federal institution was designed for the reconciliation of the inequality and segregation of the African American inorder for him to access equitable development and national resources, but, more importantly, political representation at both state and national level.
Subsequently, the Bureau came up with a number of proactive programmes and policies including the Affirmative Action as well as Federal Character Quota Systems that ensured the equitable and just integration of African Americans in main stream society and politics.
In recent years, Nigeria has established some regional frameworks that can translate into the creation of a Bureau for Ethnic Relations. One of such regional framework is the establishment of the North Central Development Commission by President Bola Ahmed Tinubu.
The Development Commission if strategically placed and positioned, can create a Bureau For Ethnic Relations that will help promote and reconcile inter-ethnic relations and development within the North Central of Nigeria.
I am limited as to the mandate of the commission interms development and the transformation of the North Central of Nigeria.
If the commission suffers from a deficit to manage ethnic relations along the lines of affirmative action and federal character principle, then, the federal government should as a matter of social priority establish an Bureau For Ethnic Relations of the six geopolitical units of Nigeria.
Let me end this write up by using the words of William Dubios that the challenge of Nigeria in the twenty first century is that of ethnic relations, it is that of the ethnic content, that of fairer skin races to that of the dark skin races.
Prof. Uji Wilfred is from the Department of History and International Studies, Federal University of Lafia
Education
Varsity Don Advocates Establishment of National Bureau for Ethnic Relations, Inter-Group Unity

By David Torough, Abuja
A university scholar, Prof. Uji Wilfred of the Department of History and International Studies, Federal University of Lafia, has called on the Federal Government to establish a National Bureau for Ethnic Relations to strengthen inter-group unity and address the deep-seated ethnic tensions in Nigeria, particularly in the North Central region.
Prof.
Wilfred, in a paper drawing from years of research, argued that the six states of the North Central—Kwara, Niger, Kogi, Benue, Plateau, and Nasarawa share long-standing historical, cultural, and economic ties that have been eroded by arbitrary state boundaries and ethnic politics.According to him, pre-colonial North Central Nigeria was home to a rich mix of ethnic groups—including Nupe, Gwari, Gbagi, Eggon, Igala, Idoma, Jukun, Alago, Tiv, Birom, Tarok, Angas, among others, who coexisted through indigenous peace mechanisms.
These communities, he noted, were amalgamated by British colonial authorities under the Northern Region, first headquartered in Lokoja before being moved to Kaduna.
He stressed that state creation, which was intended to promote minority inclusion, has in some cases fueled exclusionary politics and ethnic tensions. “It is historically misleading,” Wilfred stated, “to regard certain ethnic nationalities as mere tenant settlers in states where they have deep indigenous roots.”
The don warned that such narratives have been exploited by political elites for land grabbing, ethnic cleansing, and violent conflicts, undermining security in the sub-region.
He likened Nigeria’s ethnic question to America’s historic “race question” and urged the adoption of structures similar to the Freedmen’s Bureau, which addressed racial inequality in post-emancipation America through affirmative action and equitable representation.
Wilfred acknowledged the recent creation of the North Central Development Commission by President Bola Tinubu as a step in the right direction, but said its mandate may not be sufficient to address ethnic relations.
He urged the federal government to either expand the commission’s role or create a dedicated Bureau for Ethnic Relations in all six geo-political zones to foster reconciliation, equality, and sustainable development.
Quoting African-American scholar W.E.B. Du Bois, Prof. Wilfred concluded that the challenge of Nigeria in the 21st century is fundamentally one of ethnic relations, which must be addressed with deliberate policies for unity and integration.
OPINION
The Pre-2027 Party gold Rush
By Dakuku Peterside
The 2027 general elections are fast approaching, and Nigeria’s political landscape is undergoing a rapid transformation. New acronyms, and freshly minted party logos are emerging, promising a new era of renewal and liberation.To the casual observer, this may seem like democracy in full bloom — citizens exercising their right to association, political diversity flourishing, and the marketplace of ideas expanding.
However, beneath this surface, a more urgent reality is unfolding. The current rush to establish new parties is less about ideological conviction or grassroots movements and more about strategic positioning, bargaining leverage, and transactional gain.It is the paradox of Nigerian politics: proliferation as a sign of vitality, and as a symptom of democratic fragility. With 2027 on the horizon, the political air is electric, not with fresh ideas, but with a gold rush to create new political parties.Supporters call it the flowering of democracy. But scratch the surface and you will see something else: opportunism dressed as pluralism. This is not just politics; it is political merchandising. Parties are being set up like small businesses, complete with negotiation value, resale potential, and short-term profit models. Today, Nigeria has 19 registered political parties, one of the highest numbers in the world behind India (2,500), Brazil (35), and Indonesia (18).History serves as a cautionary tale in this context. Whenever Nigeria has embraced multi-party politics, the electoral battlefield has eventually narrowed to a contest between two main poles. In the early 1990s, General Ibrahim Babangida’s political transition programme deliberately engineered a two-party structure by decreeing the creation of the National Republican Convention (NRC) and the Social Democratic Party (SDP).His justification was rooted in the observation — controversial but not entirely unfounded — that Nigeria’s political psychology tends to gravitate toward two dominant camps, thereby simplifying voter choice and fostering more stable governance. Pro-democracy activists condemned the move as state-engineered politics, but over time, the pattern became embedded.When Nigeria returned to civilian rule in 1999, the Peoples Democratic Party (PDP) emerged as the dominant force, facing off against the All People’s Party (APP) and Alliance for Democracy (AD) coalition. The 2003 and 2007 elections pitted the PDP against the All Nigeria Peoples Party (ANPP); in 2011, the PDP contended with both the ANPP and the Congress for Progressive Change (CPC).By 2015, the formation of the All Progressives Congress (APC) — a coalition of the CPC, ANPP, Action Congress of Nigeria (ACN), and a faction of the All Progressives Grand Alliance (APGA) — restored the two-bloc dynamic. This ‘two-bloc dynamic’ refers to the situation where most of the political power is concentrated within two main parties, leading to a less diverse and competitive political landscape. Even when dozens of smaller parties appeared on the ballot, the real contest was still a battle of two heavyweights.And yet, here we are again, with Nigeria’s Independent National Electoral Commission (INEC) registering nineteen parties but facing an avalanche of new applications — 110 by late June, swelling to at least 122 by early July. This surge is striking, especially considering that after the 2019 general elections, INEC deregistered seventy-four parties for failing to meet constitutional performance requirements — a decision upheld by the Supreme Court in 2021.That landmark ruling underscored that party registration is not a perpetual license; it is a privilege conditioned on meeting electoral benchmarks, such as a minimum vote share and representation across the federation. The surge in party formation could potentially lead to a more complex and fragmented electoral process, making it harder for voters to make informed decisions and for smaller parties to gain traction.So, what explains the surge in the formation of new parties now? The reasons are not mysterious. Money is the bluntest answer, but it is woven with other motives. For some, creating a party is a strategic move to position themselves for negotiations with larger parties — trading endorsements, securing “alliances,” and even extracting concessions like campaign funding or political appointments.Others set up “friendly” parties designed to dilute opposition votes in targeted constituencies, often indirectly benefiting the ruling party. Some political entrepreneurs build parties as personal vehicles for regional ambitions or as escape routes from established parties, where rival factions have captured the leadership.Some are escape pods for politicians frozen out of the ruling APC’s machinery. There is also a genuine democratic impulse among certain groups to create platforms for neglected ideas or underrepresented constituencies. But the transactional motive often eclipses these idealistic efforts, leaving most new parties as temporary instruments, rather than enduring institutions.The democratic consequences of this kind of proliferation are profound. On one hand, political pluralism is a constitutional right and an essential feature of democracy. On the other hand, too many weak, poorly organised parties can fragment the opposition, confuse voters, and degrade the quality of political competition.Many of these micro-parties lack ward-level presence, a consistent membership drive, and ideological coherence. Their manifestos are often generic, interchangeable documents crafted to meet registration requirements, rather than to present a distinct policy vision. On election-day, their presence on the ballot can be more of a distraction than a contribution, and after the polls close, many vanish from public life until the next cycle of political registration. This is not democracy — it is ballot clutter.This is not uniquely Nigerian. In India, a few thousands registered parties exist, yet only a fraction of them is active or competitive at the state or national level. Brazil, notorious for its highly fragmented legislature, has struggled with unstable coalitions and governance deadlock; even now, it is reducing the number of effective parties.Indonesia allows many parties to register but imposes a parliamentary threshold — currently four per cent of the national vote — to limit legislative fragmentation. These examples, along with others from around the world, suggest that plurality can work, but only when paired with guardrails: stringent conditions for registration, clear criteria for participation, performance-based retention, and an electoral culture that rewards sustained engagement over fleeting visibility.Nigeria already has a version of this in place, courtesy of INEC’s power to deregister. We deregistered seventy-four parties in 2020 for failing to meet performance standards, and five years later, we are sprinting back to the same cliff.Yet, loopholes remain especially, and the process is reactive rather than proactive. Registration conditionalities are lax. This is where both INEC and the ruling APC must shoulder greater responsibility. The need for electoral reform is urgent, and it is time for all stakeholders to act.For INEC, the task is to strengthen its oversight by tightening membership verification, enhancing financial transparency, and expanding its geographic spread requirements, as well as introducing periodic revalidation between election cycles.For the ruling party, the challenge lies in upholding political ethics: resisting the temptation to exploit party proliferation to splinter the opposition for short-term gain. A strong ruling party in a democracy wins competitive elections, not one that manipulates the field to run unopposed. Strong democracy requires a credible opposition, not a scattering of paper platforms that cannot even win a ward councillor seat.Here is the truth: this system needs reform. Reform doesn’t mean closing the democratic space, but making it meaningful and orderly. Democracy must balance full freedom of association with the need for order. While freedom encourages many parties, order requires limiting their number to a manageable level.For example, Nigeria could require parties to have active structures in two-thirds of states, a verifiable membership, and annual audited financials. Parties failing to win National Assembly seats in two consecutive elections could lose registration.The message to new parties is clear: prove you’re more than just a logo and acronym. Build lasting movements — organise locally, offer real policies alternatives, and stay engaged between elections.Democracy is a contest of ideas, discipline, and trust. If the 2027 rush is allowed to run unchecked, we will end up with the worst of both worlds — a crowded ballot and an empty choice. Mergers should be incentivised through streamlined legal processes and possibly electoral benefits, such as ballot priority or increased public funding. At the same time, independent candidates should be allowed more room to compete, ensuring that reform does not entrench an exclusive two-party cartel.Ultimately, the deeper issue here is the erosion of public trust. Nigerians have no inherent hostility to new political formations; what they distrust are political outfits that emerge in the months leading up to an election, strike opaque deals, and disappear without a trace. Politicians must resist the temptation to treat politics as a seasonal business opportunity and instead invest in it as a long-term public service.As 2027 approaches, Nigeria stands at a familiar but critical juncture. The country can indulge the frenzy — rolling out yet another logo, staging yet another press conference, promising yet another “structure” that exists mainly on paper. Or it can seize this moment to rethink how political competition is structured: open but disciplined, plural but purposeful, competitive but coherent.Fewer parties will not automatically make Nigeria’s democracy healthier. But better parties — rooted in communities, committed to clear policies, and resilient beyond election season — just might. And that is a choice within reach, if those who hold the levers of power are willing to leave the system stronger than they found it.Dakuku Peterside, a public sector turnaround expert, public policy analyst and leadership coach, is the author of the forthcoming book, “Leading in a Storm”, a book on crisis leadership.