Nigeria classifies crypto as securities under new law

President Bola Tinubu signed the Investments and Securities Act (ISA) 2024, replacing the earlier 2007 law and expanding the Securities and Exchange Commission’s (SEC) oversight to include crypto exchanges and service providers. 

Emomotimi Agama, the Director-General of the SEC, highlighted the law’s role in “building a dynamic, inclusive, and resilient capital market.” He added, “By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investments.”

For everyday Nigerians, the law could bring more structure to how they buy, sell, or use crypto—especially through popular exchanges and apps. With formal oversight, users may see more secure platforms, better fraud protection, and increased trust in using crypto for daily transactions.

Under the new law, companies handling digital assets must comply with SEC regulations. It places Digital Asset Operators (DAOPs), Virtual Asset Service Providers (VASPs), and Digital Asset Exchanges under the commission’s expanded authority.

This move is seen as key to combating fraud and scams like Ponzi schemes, which have been linked to the crypto space. Convicted individuals could face at least 10 years in prison and fines starting at N10 million (roughly $6,500), with penalties rising to N40 million (roughly $26,000) in severe cases.

Supporters say the law could also improve trust in digital assets and attract more investment into the sector.

Nigeria ranked second in Chainalysis’ 2024 Global Crypto Adoption Index, reflecting its position as a leader in crypto uptake. According to Moyo Sodip, the co-founder and COO of crypto exchange Busha, daily activities like topping up mobile phone credit and paying bills have been increasingly powered by crypto. He told Chainalysis, “People are starting to see the real-world utility of cryptocurrency, especially in day-to-day transactions, which is a shift from the earlier view of crypto as just a get-rich-quick scheme.”

A history of crypto friction in Nigeria

However, despite growing crypto adoption in Nigeria, its crypto industry has faced challenges over the years. In 2021, the Central Bank of Nigeria (CBN) ordered the closure of all crypto accounts, forcing traders to go underground. The move was driven by the pressure faced by the naira amid rising crypto demand. Global platforms like Binance responded by offering peer-to-peer (P2P) services for Nigerian traders. 

The government’s stance toward cryptocurrencies began to ease when President Tinubu started his term and appointed Olayemi Cardoso as CBN governor in 2023. 

Nigeria’s regulatory update reflects a broader global shift toward clearer crypto rules. As more countries refine their frameworks, greater oversight could help build investor confidence and support the mainstream use of digital assets.