Ray Youssef, the Chief Executive Officer of NoOnes, a prominent cryptocurrency platform in Nigeria, recently disclosed in an interview with Techpoint Africa that peer-to-peer (P2P) transactions are estimated to be a $500 billion business in Nigeria alone.

This revelation comes at a time when the country is considering a ban on cryptocurrency.

Youssef emphasized that the official cryptocurrency volume in Nigeria is reported to be $59 billion annually. 

Still, he believes that the actual volume is significantly higher, potentially ten times more, due to the extensive P2P transactions that are not officially recorded.

Youssef noted that most peer-to-peer transactions occur outside of platforms like Binance or NoOnes, taking place on WhatsApp, Telegram, in coffee shops, and on the streets.

He suggested that a significant portion of the $60 billion passing through centralized exchanges may be peer-to-peer volume being disguised. 

He emphasized the resourcefulness of Nigerians in finding alternative uses for platforms not initially intended for such purposes.

It's worth noting that in February 2021, the Central Bank of Nigeria instructed banks and financial institutions to close accounts associated with cryptocurrency transactions.

The ban on cryptocurrency services was lifted by President Bola Tinubu's administration, allowing all banks and OFIs to conduct such services under the guidelines for regulating virtual assets service providers.

Following the ban, the CBN discovered that crypto traders were manipulating the naira through peer-to-peer trading using a pump-and-dump strategy.

In February 2024, the Central Bank Governor, Olayemi Cardoso, stated that Binance processed $26 billion in untraceable transactions, leading to a crackdown on the global exchange and the freezing of over 1,000 bank accounts involved in peer-to-peer transactions.

Despite this, many Nigerians, particularly P2P traders, are expressing dissatisfaction with the Federal Government's decision, arguing that cryptocurrency is legal and should not be blamed for the weakening of the naira.