The six month detention of Tigran Gambaryan, a U.S. citizen and former federal agent, now employed by cryptocurrency exchange Binance, is raising concerns about Nigeria’s international business reputation and its attractiveness to foreign investors.
Gambaryan, who has been held for over six months, is reportedly in deteriorating health, according to Binance CEO Richard Teng.
Teng, in a statement, called for the immediate release of his employee and warned that the situation could “be detrimental to the long-term economic development and well-being of” Nigeria. The detention has sparked fears among industry leaders that Nigeria’s actions could lead to broader economic repercussions.
The case has drawn criticism from international business and industry groups. The Digital Chamber of Commerce, an advocacy group for the blockchain and cryptocurrency sectors, stated that the Nigerian government’s actions ”threatens all crypto professionals” in the country.
The Nigerian Blockchain Association echoed these concerns, noting that the continued detention of the Binance employee could have “significant implications for the national interest” of the country, as well as “the reputation of Nigeria's blockchain industry.” The association warned that such actions could deter future investments and hinder the growth of the nation’s tech and crypto industries.
Experts warn that Nigeria’s handling of the situation could dampen foreign direct investment (FDI) at a time when the country is striving to attract international capital. The Digital Chamber has expressed concerns that the Nigerian government’s approach, including the imposition of excessive fines and the detention of foreign nationals, could have a “chilling effect on foreign direct investment and continuation of operations for multinational firms operating” in Nigeria.
A financial expert from the Cato Institute suggested that many international companies may now reconsider the risks of operating in Nigeria, as “many companies are becoming increasingly hesitant from doing business in the country” because of concerns about the safety of foreign professionals.
The case has also led to calls for action from U.S. lawmakers. Several have urged President Joe Biden to intervene, arguing that the American citizen is effectively being held “hostage” by the Nigerian government. Despite these calls, the White House has not yet issued a public statement on the matter, leading to frustration among the detainee’s family and advocates.
Criticism has also emerged from the business community in the U.S. A partner at Bankless Ventures, a crypto investment firm, voiced disappointment over the lack of response from the White House.
Economists are weighing in on the potential consequences for Nigeria’s economy. Steve Hanke, a prominent economist, pointed out that Nigeria’s economic challenges stem from deeper structural issues rather than the cryptocurrency sector.