Nigeria’s Securities and Exchange Commission (SEC) has announced a delay in issuing new provisional licences to crypto startups under its Accelerated Regulatory Incubation Programme (ARIP). The delay, according to Director General Emomotimi Agama, is due to the need for a third level of due diligence.
Speaking during a virtual stakeholder session hosted by the FinTech Association of Nigeria (FintechNGR), Agama acknowledged the concerns of digital asset startups awaiting approval. He apologised for the slow process, noting that lessons from the first batch of licences issued in August 2024 revealed compliance issues that need to be addressed.
“From the first batch of provisional licences, we have observed important issues we need to take care of,” Agama said. “Level 3 due diligence needs to happen before we can come out with the next set.”
The commission, which promised a faster licensing process in December 2024, has yet to approve new applications since granting provisional licences to Quidax and Busha. Startups that applied last June remain stuck in limbo, with no clear timeline for when new licences will be issued.
Agama explained that crypto regulation involves coordination with multiple agencies—including the EFCC, NFIU, and ONSA—which operate independently. This multi-agency process has contributed to delays in the SEC’s review and approval of applications.
Despite these setbacks, the SEC remains committed to building a solid regulatory foundation. Agama stressed the importance of collaboration in achieving this goal, especially as concerns around money laundering and terrorist financing continue to drive scrutiny of the crypto space.
The delay follows the recent passage of Nigeria’s Investment and Securities Act (2025), which officially places cryptocurrencies under the SEC’s regulatory umbrella. While this law provides clearer jurisdiction for the commission, crypto startups must now wait longer for regulatory certainty in a space that thrives on speed.
