Nigeria has officially recognized cryptocurrency and digital assets as securities for the first time with the enactment of the Investment and Securities Act (ISA) 2025. Signed by President Bola Tinubu, the new law brings clarity to the country’s previously uncertain digital asset landscape. Virtual assets, including cryptocurrencies, investment contracts, and digital asset exchanges, are now under the regulatory oversight of the Securities and Exchange Commission (SEC). The law aims to strengthen investor protection, enhance accountability, and curb abuse in the rapidly expanding crypto sector.
A key provision of the ISA 2025 is the recognition of digital assets as securities. The law defines securities exchanges as organized facilities for bringing buyers and sellers together and matching offers for digital assets, among other financial instruments. This development is expected to bolster investor confidence and regulatory oversight. With Nigeria ranking second globally in cryptocurrency adoption, this move is expected to attract further growth to the country’s crypto market.
The ISA 2025 also introduces structural reforms designed to align Nigeria’s capital markets with international best practices. By offering a clearer legal framework for digital assets, the Act fosters deeper capital formation and economic diversification. SEC Director-General Dr. Emomotimi Agama praised the legislation, calling it a significant step toward building a dynamic, resilient capital market. While the law paves the way for growth, challenges remain, particularly regarding the need for a detailed strategy for the industry’s development.
Historically, Nigeria’s stance on cryptocurrencies was restrictive, with traders often relying on underground and peer-to-peer (P2P) exchanges due to regulatory uncertainty. However, in mid-2023, the government signaled a shift toward a more progressive regulatory approach, culminating in the ISA 2025’s passage. The SEC’s Accelerated Regulatory Incubation Program has already granted provisional licenses to several crypto exchanges, helping to formalize and legitimize the market. This regulatory clarity positions Nigeria as a leader in the global cryptocurrency space, potentially driving innovation and economic growth in the digital economy.
Source: Business Day