Crypto is back in Nigeria

Africa’s largest economy ends a crypto ban in place since February 2021. Nigerian banks and fintechs are now working together on a naira stablecoin (cNGN).

Author

Anthony Miclet
December 26, 2023

Good morning and Merry Christmas folks! 🎅🎄🎁

Santa came early for crypto enthusiasts in Nigeria.

The Central Bank’s new governor last week lifted a crypto ban imposed by his predecessor nearly three years ago. Banks and fintech in the country reportedly now plan to launch a naira stablecoin (cNGN) in 2024.

In other top stories from the past week:

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Pulse54: African startups rise to the climate challenge

Young African entrepreneurs are responding to current climate upheavals with innovative solutions, drawing investor interest and backing.

Last year, climate-tech funding in Africa grew 3.5x to over $860m, making it Africa’s most funded sector after fintech. And over the past 12-18 months, several VC firms—among them Satgana, Catalyst Fund, Equator, and EchoVC—have introduced funds to support startups in the sector.

The timing of this surge in climate funding couldn’t be better, we write in our latest Pulse54 newsletter, as Africa increasingly suffers the impacts of climate change.

We delve into the continent’s budding climate-tech sector, spotlighting the opportunity and active players—VCs and startups.

Tap the button below to access it. Don’t forget to subscribe to get our next edition straight in your inbox.

Xmas rally

Assets soar ahead of Christmas, save for JSE & NSE equities

The Nigerian Exchange surged past the 74,000 mark, with the All-Share Index rising 1.21% increase to close at 74,289.02 points on Thursday with the market capitalization exceeding N40trn (~ $42bn).

Bitcoin has risen to nearly $45,000—a staggering 165% surge in value this year. As 2023 winds down, enthusiasts believe BTC’s value is likely to surge past $50,000 as early as January.

Gold climbed on Friday in a last-minute bull run before hitting the wall at $2,070 and reversing toward $2,050. For 2024, the precious metal is seen rising with Fed rate cuts, recession fears, and Middle East tensions. 

Meanwhile, oil eased ahead of Christmas break on possible future Angola output increase. Experts see the market enduring serious headwinds and challenges in 2024.

Crypto return

Nigeria lifts ban on crypto banking, to create stablecoin

After a two-year ban, Nigeria's central bank has flipped the switch on crypto in a December 22 circular, allowing transactions but emphasizing regulation. 

Banks can now handle crypto firms' accounts and forex, shifting from a complete ban to controlled engagement. They can facilitate crypto transactions for only licensed firms issued by the SEC, which controls the wider digital asset landscape.

This reflects global trends and aligns with the Securities Commission's previous digital asset regulations. Crypto in Nigeria is back but under watchful eyes.

OPEC tensions

Angola to leave oil bloc amid dispute over export quotas

Africa’s leading oil exporter Angola announced its decision to exit the Organization of the Petroleum Exporting Countries after 16 years of membership last week amid contention over production quotas.

Luanda—second only to Nigeria by oil export volumes—rejected a reduced output limit imposed by OPEC leaders, which aimed to account for the country's declining oil output capacity.

The departure reveals underlying tensions among the oil cartel’s members and introduces uncertainties in the global oil market. Although fellow African producers, Nigeria and Congo, have reaffirmed their commitment to the Saudi-led group.

Headline roundup

A summary of the major business, tech, and finance headlines of the past week.

Macro & Markets

VC Funding & Startups

Other Deals & Expansion

Funds & Accelerators

Startup Opportunities

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Our insight for the week

Get more context into events shaping Africa’s economic landscape.

Flagging. That’s how we would describe the African tech startup funding scene in 2023.

Global macro headwinds saw investors cut fewer checks and some reportedly backed down from commitments, forcing a slew of startup shutdowns and downsizing.

While on the surface, it seems Africa’s VC funding figures fell far from 2021 and 2022 levels, available estimates suggest the continent’s startups still managed to attract more than $5 billion.

Before the year’s funding scorecards start to roll out, we take a look at the top 10 largest fundraising rounds in the African tech startup industry this year and the trends they reveal.

Tap the button below to check out the full blog on our website.

We will also be publishing a piece that explores standout trends in Africa’s tech landscape in 2023 and our high-conviction themes for the new year—stay tuned!

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Catch you next week!