Nigeria tightens miner operations: lack of licenses halts progress

According to multiple sources, Nigerian authorities claim that no cryptocurrency firms, including mining outfits, meet the country’s licensing requirements. This effectively freezes any growth in the local mining sector, as operating legally depends on having the appropriate permits. The number of major pools in the region is approaching zero.

Data shows that mining interest in Nigeria increased by almost 50% in 2023 due to bitcoin’s rising popularity. However, in practice, regulatory barriers derail efforts by local enthusiasts. Experts estimate that up to 20 medium-scale farms could emerge under better conditions with external funding. Currently, many are forced underground, risking hefty fines or even criminal charges.

Observers predict that this policy may deprive Nigeria of potential tax revenues and blockchain-related investments in the long run. Meanwhile, officials insist that they’re acting in the interest of financial stability and citizen protection against fraudulent schemes. It remains unclear whether the government’s stance will shift in the coming years.