SBM Intelligence, a risk consultancy firm focused on Africa, has issued a warning about the potential impact of bribery allegations made by Binance CEO Richard Teng against Nigerian government officials on the country’s foreign investment efforts.
In its assessment of recent events and their economic implications, which it shared with media outlets, SBM Intelligence highlighted that the circumstances surrounding the detention of Binance officials in Nigeria could send a discouraging message to foreign investors, potentially undermining confidence in the country’s investment landscape.
On May 7, it was reported that Teng alleged that unknown individuals had sought a cryptocurrency bribe from Binance executives Tigran Gambaryan and Nadeem Anjarwalla before their detention on February 28, 2024.
Despite the Nigerian government’s denial, SBM Intelligence stressed the importance of a thorough investigation to uncover the truth and hold any guilty officials accountable. The consultancy firm stated that Nigeria’s government strongly opposes cryptocurrency, which contradicts its increasing popularity and acceptance among citizens. This highlights a gap between government views and public opinion.
SBM Intelligence suggested that individual citizens are attracted to cryptocurrencies due to the investment and transaction possibilities they offer. However, the government and its agencies view cryptocurrencies negatively because they diminish their control over financial transactions and the economy.
The company noted that it has been over two months since the Nigerian government detained two Binance executives, with one managing to escape. SBM Intelligence also highlighted that President Bola Tinubu has been traveling to different countries to attract investors. However, it emphasized that detaining foreign business officials could make it challenging for the country to attract investors.
SBM Intelligence further mentioned that the ongoing narrative surrounding the arrest of the Binance executives reflects poorly on the Nigerian government. It highlighted that resolving the issue promptly, fairly, and diplomatically would benefit the Tinubu administration.