Nigeria Classifies Crypto as Securities with New Regulations

Nigerian President Bola Ahmed Tinubu signed the Investments and Securities Act 2025 on April 2025, classifying digital assets as securities and granting Nigerian SEC oversight.

This move provides legal clarity, influences market dynamics, and aims to attract investments both locally and internationally.

Crypto Assets Now Regulated as Securities in Nigeria

The Investments and Securities Act 2025, signed by President Bola Tinubu, formally recognizes digital assets as securities. This empowers the Nigerian SEC to regulate such assets with enhanced oversight responsibilities.

The act requires crypto platforms operating in Nigeria to comply with SEC’s licensing mandates. This law intends to secure investor protection and encourage foreign investment by promoting a structured marketplace.

VASPs Face New Compliance Costs Under SEC Rules

The new legislation emphasizes transparency and investor safety, affecting VASPs who must now meet stringent compliance costs. This is expected to consolidate the market towards well-capitalized firms.

While the banking sector’s direct crypto activities remain restricted, regulatory clarity is seen as vital for boosting Nigeria’s competitive position in attracting international investments. As Emomotimi Agama, Director-General, Nigerian SEC, stated, “The ISA 2024 reflects our commitment to building a dynamic, inclusive and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers SEC to foster innovation, protect investors more efficiently, and reposition Nigeria as a competitive destination for local and foreign investments.”

Formalizing Crypto Markets Post-CBN Ban

Previously, the 2021 CBN ban on crypto transactions led to increased P2P trading. The new act seeks to formalize the crypto market within the framework of Nigerian financial regulations.

With Nigeria’s high crypto adoption rate, regulated oversight is anticipated to offer stability and growth opportunities, aligning with the aim to secure both local and foreign investments.