Nigerian SEC to Establish New Compliance Rules by Q2 2025

The Nigerian SEC are tightening control over digital asset promotions to combat unregulated practices by influencers and virtual asset service providers (VASPs).

With the updated rules targeting social media promotions, these measures aim to safeguard Nigerian investors and establish a compliant crypto ecosystem.

Effective June 30, 2025, the new regulations position the Nigerian SEC crypto regulations as a significant step in addressing the risks associated with unregulated crypto marketing while fostering transparency and accountability.

SEC’s Strategy to Regulate Influencers

Social media influencers, often dubbed “Finfluencers,” have become central figures in promoting crypto products. The Nigerian SEC crypto regulations now mandate that influencers secure a “no-objection authorization” before advertising any digital assets.

Moreover, Finfluencers must confirm the licensing status of the crypto companies they promote with the SEC and disclose any compensation received for endorsements. Violators face penalties of up to ₦10 million (approximately $6,400) or a potential jail term of three years.

“This move aims to curb the menace of unregulated financial promotions that mislead investors,” explained Emomotimi Agama, director-general of Nigeria’s SEC.

VASPs Under Stricter Oversight – Nigerian SEC Crypto Regulations

The revised Nigerian SEC crypto regulations extend to VASPs, who must now obtain prior approval from the SEC before engaging third-party marketers. Additionally, the regulations require VASPs to ensure these partners comply with all marketing guidelines.

The rules apply universally to any VASP offering services to Nigerian residents, reinforcing the SEC’s commitment to protecting investors from misleading promotions.

On September 9, 2024, the SEC signaled its intention to intensify enforcement actions against businesses engaging in unregulated crypto transactions. The focus will be on entities that fail to obtain the necessary licenses or approvals from the SEC.

Currently, only two exchanges—Quidax Technologies and Busha Digital—are licensed to operate in Nigeria. Their approval underscores the regulator’s intention to establish a more structured market.

“These enforcement measures demonstrate our resolve to bring order and compliance to Nigeria’s crypto ecosystem,” noted Agama.

Safeguarding Against False Promotions – Nigerian SEC Crypto Regulations

The Nigerian SEC crypto regulations also place a spotlight on advertising practices, especially in the digital realm. Ads must comply with strict guidelines, including clear and accurate representation of investment risks. The SEC plans to actively monitor these promotions and penalize violators.

The new framework highlights the importance of investor education and protection. According to the SEC, these steps are necessary to prevent unauthorized financial investments from proliferating on platforms like social media.

While some industry stakeholders have welcomed the Nigerian SEC crypto regulations as a much-needed intervention, others have expressed concerns over the potential impact on innovation.

Chijioke Nwankwo, a blockchain analyst, remarked, “Regulation is essential for growth, but it must strike a balance to ensure innovation is not stifled. Nigeria’s SEC has a delicate task ahead.”

On the other hand, compliance-focused firms like Quidax Technologies view the changes positively. “The updated rules bring much-needed clarity to the industry. It’s a win for all stakeholders—regulators, businesses, and investors alike,” said Buchi Okoro, CEO of Quidax.

A New Era of Compliance For Nigerian SEC Crypto Regulations Investors

The Nigerian SEC crypto regulations mark a turning point for the country’s digital asset market. By holding influencers and VASPs accountable, the rules aim to eliminate deceptive practices and build a safer environment for investors.

As Nigeria prepares to enforce these measures, the global crypto community will likely watch closely. The country’s approach could serve as a model for other nations grappling with the challenges of regulating this fast-evolving industry.

“The new rules align with global best practices, ensuring that Nigeria remains competitive while protecting its citizens,” said Agama.

The updated Nigerian SEC crypto regulations represent a bold step toward fostering transparency and investor trust in the crypto market. With strict penalties for non-compliance, the SEC is sending a clear message: unregulated practices will no longer be tolerated.

By targeting influencers and VASPs alike, the regulations promise to usher in a new era of accountability, setting a benchmark for other nations navigating the complexities of digital asset regulation.

As the June 30, 2025 enforcement date approaches, compliance will become the watchword for all crypto stakeholders in Nigeria. Will these measures achieve their desired impact? Only time will tell, but one thing is certain—the Nigerian SEC crypto regulations are a game-changer for the industry.

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