Nigerian Bitcoin advocate challenges government restrictions in landmark lawsuit

Sep 4, 2024 Localbitcoins No Comment 305 Views

Nigerian Bitcoin advocate James Otudor has initiated legal proceedings against the Nigerian government’s restrictions on the ownership, use, and trade of Bitcoin, Tether (USDT), and other cryptocurrencies, as stated in an August 9 announcement. Otudor is demanding that the government acknowledge and regulate Bitcoin as a commodity within the financial system.

In his statement, Otudor declared, “This legal action serves as a peaceful protest for freedom and financial inclusion. As a nation built on human rights, it is our duty to ensure that the rights of users and holders of Bitcoin, USDT, and other digital assets are safeguarded and upheld.”

The lawsuit comes in response to Nigeria’s increasingly restrictive crypto regulations, which have led major platforms such as OKX to exit the market, and the Nigerian naira being removed from crypto exchanges operating in the country.

High-profile officials and regulatory bodies, including Nigeria’s president, the finance minister, the attorney general, the Central Bank of Nigeria (CBN), and the Nigerian Securities and Exchange Commission (SEC), are among the defendants named in the lawsuit. Other agencies involved include the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, the National Information Technology Development Agency (NITDA), and the Nigerian Communications Commission (NCC).

The core of the lawsuit, according to Otudor, is the violation of citizens’ fundamental human rights by targeting individuals who want to engage in acquiring, using, or trading digital assets. Maurice Oru Ebam, Otudor’s lawyer, pointed out that Section 43 of the Nigerian Constitution guarantees every Nigerian the right to acquire and own property, which includes digital assets that have become crucial for financial inclusion and economic stability.

Furthermore, the lawsuit argues that the government’s actions, such as compelling telecom companies to block access to crypto platforms, violate Article 14 of the African Charter on Human and Peoples’ Rights. This article affirms property rights, which can only be restricted for public needs or community welfare.

Otudor highlighted the importance of Bitcoin and other digital assets in protecting savings from inflation and enabling international transactions, especially considering the naira’s devaluation and the nation’s foreign exchange shortages.

In his demands, Otudor is calling for an immediate halt to the blocking of crypto exchange platforms and unrestricted access for Nigerians. He is also seeking a court declaration that the infringement on the rights of Bitcoin, USDT, and other digital asset users is illegal and unconstitutional. Additionally, Otudor is pushing for the creation of pro-crypto regulations that officially recognize Bitcoin and regulate it as a commodity within Nigeria’s financial system.