Bolstering Trust: Why Nigeria’s Crypto Regulation Still Needs Further Refinement
Nigeria is emphatically signaling its commitment to bringing its burgeoning cryptocurrency industry, which has long been characterized by a “Wild West” environment, under a robust regulatory framework after years of inconsistent efforts. This clear intention to impose order on digital asset operations is a critical step towards fostering a more secure and transparent financial ecosystem within the nation, aiming to provide much-needed clarity for participants.
Advancing Regulatory Frameworks Amidst Evolving Digital Markets
The journey towards comprehensive crypto regulation in Nigeria, while showing progress, still has significant ground to cover, as highlighted by Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN). During a fireside chat with Chinedu Obidiegwu, Head of Business at Luno Nigeria, at Moonshot by TechCabal on Thursday, October 16, Iwuno acknowledged that “Crypto regulation is gaining clarity, but we are not where we want to be yet.” He further noted that the recently signed Investment and Securities Act (ISA) 2025, enacted in March, is not without its imperfections but serves as a foundational step. Iwuno’s perspective suggests an ongoing need for refinement, articulating that the market remains early for operators looking to enter. Since 2024, Nigeria’s Securities and Exchange Commission (SEC) has proactively positioned itself as a forward-thinking regulator, demonstrating this commitment by launching the Accelerated Regulatory Incubation Program in June. This initiative underscores a concerted effort to adapt regulatory oversight to the rapid pace of technological innovation and foster responsible innovation within the digital asset space.
While Nigeria has laid a vital groundwork with the ISA 2025 and the SEC’s proactive programs, the sentiment among industry stakeholders indicates that these initial steps are merely the beginning. The collective ambition is to cultivate a regulatory environment that not only protects investors and ensures market integrity but also encourages innovation and growth within the vibrant African tech landscape. Achieving a truly robust and comprehensive regulatory framework will require continuous dialogue, adaptation, and refinement to address the complexities of the evolving digital asset economy and build lasting confidence.
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