In a recent assessment, Africa-centered risk consultancy firm SBM Intelligence has warned of potentially damaging consequences to Nigeria’s foreign investment potential resulting from bribery allegations made by Richard Teng, CEO of Binance, against Nigerian officials. The episode involving the detention of Binance executives in Nigeria could undercut foreign investor confidence, says the firm, setting a negative precedent that could deter further investment.
Reports suggest that Teng called out individuals, whose identities remain unknown, accusing them of soliciting a cryptocurrency bribe from Binance executives Tigran Gambaryan and Nadeem Anjarwalla, prior to their detention on February 28, 2024. SBM Intelligence underscores the need for a rigorous investigation to reveal the truth behind these allegations, and to hold any guilty parties to account.
As the consensus appears to widen between the Nigerian government’s resistance to cryptocurrency and its growing acceptance among the populace, SBM Intelligence indicates that this newly blooming source of investment could be at risk. Cryptocurrencies lure individual investors due to their potential for transaction and investment, but the Nigerian government is wary as they reduce their control over financial dealings and the economy.
With the situation around the detention of the Binance duo dragging on for over two months, SBM Intelligence suggests that this could cast a shadow over President Bola Tinubu’s efforts to allure foreign investors. This event would serve as a warning to others about the risks of dealing with a nation where bribery and indefinite detention of foreign officials seem plausible. The firm also emphasized that rapid, fair, and diplomatic resolution of this issue would be in the best interest of the Nigerian government.