Economy
Luno Engages CBN to Enable Customers Withdraw Funds
By Ahmed Rahma
One of the popular platforms for trading cryptocurrencies in Nigeria, Luno, has addressed the inability of its customers to withdraw their funds.
In a statement on Friday, the cryptocurrency trading platform said its users have been unable to get their money because the Central Bank of Nigeria (CBN) has blocked access to its Naira accounts.
How it all started
In February 2021, the CBN directed all commercial banks and other financial institutions in the country to block the accounts of crypto exchanges.
It explained in a circular and a subsequent notice that the use of digital currency in Nigeria was illegal and that as an institution saddled with the responsibility to regulate the nation’s banking industry, it would not allow the use of illegal money.
“Further to earlier regulatory directives on the subject, the bank hereby wishes to remind regulated institutions that dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges is prohibited.
“Accordingly, all DMBs, NBFIs and OFIs are directed to identify persons and/or entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.
“Please note that breaches of this directive will attract severe regulatory sanctions,” a circular dated February 5, 2021, signed by the Director of Banking Supervision, Bello Hassan, said.
Though the apex bank said the directive was with immediate effect, a window was allowed for customers of cryptocurrency exchanges to withdraw their funds.
For those who could not take back their money, it has been difficult because the banks have blocked access to the accounts in compliance with the order of the regulator.
Growing concerns of customers
The inability of some trapped customers to withdraw their funds has not gone down well with Luno, which said it was having discussions with the apex bank on ways to unblock its bank accounts to allow it to refund customers’ money.
Luno addresses the issue
In the statement released today, the firm assured that it would make the refund to its clients as soon as it gets the green light from the central bank.
“We are still in communication with the CBN and are hopeful that they’ll soon grant us access to our accounts to be able to payout Naira,” a part of the statement said.
“As soon as we are able to get access to our accounts, Nigerians will be able to withdraw. In the meanwhile, rest assured that your funds are completely safe and we are on your side,” Luno assured.
Discrepancies in Bitcoin rates
Meanwhile, Luno has addressed the concerns raised by some of its customers as regards the rate the Bitcoin and other digital tokens are sold on its platform.
Some cryptocurrency traders in Nigeria had claimed the value of the Bitcoin on Luna was higher than its competitors, forcing some of them to migrate.
But Luno said the price of Bitcoin on each platform is majorly determined by the forces of demand and supply.
“Firstly, the price of Bitcoin is determined by supply and demand, not Luno or any other cryptocurrency exchange.
“Each platform and country has its own unique marketplace with its own drivers of demand,” the company stated.
“The recent CBN directive has meant Naira withdrawals are no longer possible.
“Buying Bitcoin is the only way for Nigerians looking to send the Naira they still have in their accounts.
“This means there is now a power imbalance favouring the seller, causing higher prices.
“Secondly, the ban has also created market inefficiencies that remove the correlation between different crypto exchanges, resulting in significant price differences from one exchange and another,” it further said.
Luno silent on P2P adoption
Meanwhile, the company has remained silent on the possibility of its users in Nigeria to transact cryptocurrency through the peer-to-peer (P2P) system.
In a previous statement, Luno had maintained that it was not planning to consider the use of P2P to trade the digital coins on its platform.
However, a few of its competitors, including Binance, Paxful, amongst others, have adopted this system to beat the ban of cryptocurrency trading in Nigeria.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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