President Bola Ahmed Tinubu has officially signed the Securities and Exchange Commission (SEC) Act 2025 into law. This new legislation introduces a regulatory framework that formally recognizes digital assets, including cryptocurrencies, as financial instruments under Nigerian law.
Digital Assets Gain Legal Recognition
The SEC Act 2025 marks the first time digital assets are codified in Nigeria’s legal system. While the new law does not render cryptocurrencies like Bitcoin as legal tender, it does recognize them as financial instruments or currencies, allowing them to be regulated. This clarity opens the door for structured innovation, investor participation, and the development of a digital financial economy within the country.
From CBN Ban to Structured Regulation
This development is particularly significant in light of the Central Bank of Nigeria’s (CBN) earlier stance. In February 2021, the CBN issued a directive that restricted financial institutions from processing transactions involving cryptocurrencies, citing concerns around fraud, money laundering, and financial system risks.
However, even during the period of the ban, the SEC of Nigeria had already begun laying the groundwork for regulation. Reports suggest that the Commission had initiated a regulatory sandbox to explore safe frameworks for crypto-related activities. The signing of the SEC Act 2025 now provides the legal backing needed to align both agencies’ goals: securing the financial system while embracing innovation.
Accelerated Regulatory Incubation and Crypto Licensing
Prior to the official signing of the Act, the SEC had introduced an initiative known as the Accelerated Regulatory Incubation Programme (ARIP) in 2024. This initiative was designed to fast-track the registration and licensing of Virtual Asset Service Providers (VASPs) operating in Nigeria. Through this initiative, digital platforms are now offered a clear path to compliance, consumer protection, and secure operations under Nigerian law.
Several Nigerian fintech companies have already benefited from provisional licenses under this program, signaling strong momentum and growing interest in the country’s digital asset ecosystem.
Industry Reactions and Stakeholder Support
The SEC Act 2025 has been welcomed by various stakeholders in the Nigerian digital economy. Industry groups have praised the initiative as a step forward in building trust, encouraging innovation, and expanding the reach of digital finance. Blockchain technology associations have also emphasized the importance of this law in making Nigeria a leader in Africa’s growing digital economy.
Implications for Nigeria’s Economy
This legal recognition of digital assets is expected to have wide-ranging implications:
Investor Confidence: With a clear legal structure, both local and international investors are more likely to invest in Nigeria’s digital economy.
Financial Inclusion: Digital assets could play a crucial role in extending financial services to the unbanked and underbanked population.
Youth Empowerment and Innovation:The law opens doors for young tech entrepreneurs to innovate safely and legally within a structured system.
Economic Diversification: As Nigeria seeks to reduce its dependence on oil and traditional sectors, digital finance could emerge as a new growth frontier.
The signing of the SEC Act 2025 by President Bola Ahmed Tinubu is a defining moment in Nigeria’s journey toward a digitally inclusive and innovation driven economy. By formally recognizing digital assets and setting up a clear regulatory environment, Nigeria is poised to embrace the future of finance while ensuring the necessary protections and oversight are in place. The collaboration between the SEC, the CBN, and industry stakeholders will be vital in shaping a sustainable digital financial ecosystem for the years ahead.
For context this law does not make Bitcoin legal tender in Nigeria.
But recognizing crypto as securities is a BIG step forward a strong foundation for full adoption in the near future.
