Nigeria has taken a major step toward regulating its thriving cryptocurrency sector after President Bola Tinubu signed the Investments and Securities Act (ISA) 2024 into law. The new legislation replaces the 2007 version and, for the first time, brings Nigeria crypto law under the oversight of the Securities and Exchange Commission (SEC).
The move marks a significant shift in the country’s approach to digital assets, providing a legal framework for exchanges, service providers, and investors. With Nigeria ranking as one of the world’s top crypto-adopting nations, the law aims to enhance security, combat fraud, and attract foreign investment.
What the New Nigeria Crypto Law Means for Investors and Users
Under the Nigeria crypto law, digital assets are now classified as securities, placing them under SEC supervision. This means that Digital Asset Operators (DAOPs), Virtual Asset Service Providers (VASPs), and Digital Asset Exchanges must comply with strict regulatory requirements.
For everyday Nigerians, the law could bring more stability to crypto transactions, which are already widely used for remittances, bill payments, and peer-to-peer (P2P) trading. With SEC oversight, users may benefit from:
- Better fraud protection
- More secure trading platforms
- Increased trust in crypto transactions
Emomotimi Agama, Director-General of the SEC, emphasized that the Nigeria crypto law is designed to “build a dynamic, inclusive, and resilient capital market.” He added that the updated regulations will help “foster innovation, protect investors, and position Nigeria as a competitive hub for local and foreign investments.”
Stricter Penalties for Crypto Fraud Under New Nigeria Crypto Law
One of the key aspects of the Nigeria crypto law is its strong stance against fraudulent activities. Scams like Ponzi schemes—often linked to unregulated crypto operations—will now face severe consequences, including:
- Minimum 10-year prison sentences
- Fines starting at ₦10 million (~$6,500)
- Increased penalties up to ₦40 million (~$26,000) for serious offenses
This crackdown is expected to restore confidence in Nigeria’s crypto market, which has seen rapid adoption despite past regulatory hurdles.
Nigeria’s Crypto Adoption: A Global Leader Despite Past Restrictions
Nigeria ranks second in Chainalysis’ 2024 Global Crypto Adoption Index, reflecting its citizens’ strong reliance on digital assets. Moyo Sodipo, COO of crypto exchange Busha, noted that many Nigerians now use crypto for daily transactions—from topping up mobile credit to paying bills.
“People are starting to see the real-world utility of cryptocurrency,” Sodipo told Chainalysis. “This is a shift from the earlier perception of crypto as just a get-rich-quick scheme.”
However, Nigeria’s relationship with crypto hasn’t always been smooth. In 2021, the Central Bank of Nigeria (CBN) banned financial institutions from servicing crypto exchanges, forcing traders to rely on P2P platforms like Binance. The restrictions were driven by concerns over the naira’s stability amid rising crypto demand.
The regulatory environment began to shift when President Tinubu took office in 2023 and appointed Olayemi Cardoso as CBN governor. The new Nigeria crypto law signals a more structured approach to digital assets, aligning with global trends toward clearer regulations.
The Future of Crypto in Nigeria Under SEC Oversight
With the Nigeria crypto law now in effect, the country joins a growing list of nations establishing formal frameworks for digital assets. The move could:
- Encourage institutional investment
- Reduce scams and illicit activities
- Strengthen Nigeria’s position as a crypto leader in Africa
As the SEC begins enforcing the new rules, industry players and users alike will be watching closely to see how the regulations shape Nigeria’s evolving crypto landscape.
For now, one thing is clear: Nigeria crypto law has taken a decisive step toward legitimacy, security, and broader adoption. The Bit Gazette has all the latest crypto news plus expert analysis.
