Nigeria Establishes Regulatory Framework for Cryptocurrencies in 2025, Recognizing Them as Securities

Nigeria, long a leader in crypto adoption, has taken a significant step toward formalizing its digital asset ecosystem. The Securities and Exchange Commission (SEC) now oversees cryptocurrency operations under new rules enacted in June 2025. This marks a stark reversal from the 2017 ban on bank involvement with virtual assets.

President Bola Ahmed Tinubu's signing of the ISA 2025 law classifies cryptocurrencies as securities, granting the SEC regulatory authority. Emomotimi Agama, SEC Director General, emphasized rigorous due diligence for VIRTUAL asset service providers (VASPs), though licensing implementation faces delays.

The framework enables lawful crypto transactions for goods and services while maintaining compliance protocols. This shift reflects Nigeria's balancing act between fostering innovation and implementing oversight in one of Africa's most dynamic digital economies.