Nigeria Recognizes Cryptocurrencies As Securities With ISA 2025

Nigeria has made a significant stride in embracing cryptocurrency regulation with the enactment of the Investment and Securities Act (ISA) 2025. This landmark reform, signed into law by President Bola Ahmed Tinubu, officially classifies cryptocurrencies and other digital assets as securities. This move reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulatory body for the Nigerian capital market, tasked with overseeing the burgeoning crypto industry.

The ISA 2025 aims to promote investor confidence and mitigate risks associated with digital assets. By recognizing cryptocurrencies as securities, the new law provides a clear regulatory framework that is expected to attract more investors and foster the growth of the crypto market in Nigeria. This regulatory shift is a departure from the previous ISA of 2007, which did not adequately address the complexities of digital assets.

The enactment of ISA 2025 also introduces stringent penalties for Ponzi schemes and other fraudulent activities in the crypto space. Operators found guilty of such activities face a 10-year jail term and a fine of 20 million naira. This tough stance is designed to protect investors and ensure the integrity of the market.

The new law is part of a broader effort to reposition Nigeria as a leading player in the global financial landscape. By embracing crypto regulation, Nigeria joins a growing list of countries that are recognizing the potential of digital assets and taking steps to integrate them into their financial systems. This move is expected to enhance Nigeria's attractiveness to international investors and boost its economic growth.

This regulatory breakthrough marks a dramatic departure from Nigeria’s previously restrictive stance on cryptocurrencies. For years, traders operated in a grey area, relying heavily on peer-to-peer (P2P) transactions due to the lack of official support. Crypto trading activity continued underground despite earlier crackdowns, with platforms adapting to support the Nigerian market via P2P infrastructure. The turning point came in 2023, when Tinubu’s administration began easing its stance, signaling a broader economic reform effort.

The ISA 2025 has now aligned Nigeria’s capital markets with global regulatory practices and supports the nation’s goal of retaining its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This move is expected to boost investors’ confidence and attract international capital to Nigeria’s growing tech and fintech sectors.

The ISA defines securities exchanges to include platforms dealing in digital assets, marking a direct inclusion of crypto markets into Nigeria’s financial system. In doing so, the law aims to protect investors, reduce fraud, and foster accountability. SEC Director-General Dr. Emomotimi Agama has praised the reform as an important step to reposition Nigeria as a competitive financial hub. “By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation,” he stated.

Despite the progress, industry experts urge more strategic clarity. Femi Adegolu, CEO of Bchain Africa, acknowledged the development as a game changer but called for a clearer roadmap for crypto implementation. “The growth will evolve gradually… there’s not a full clear roadmap on what needs to be achieved,” he said.

The Nigeria crypto regulation 2025 milestone brings long-awaited legitimacy to the country’s thriving digital asset market. With crypto now legally recognized as securities and platforms brought under SEC oversight, the regulatory groundwork is finally set. As implementation unfolds and policymakers refine the framework, the ISA 2025 has the potential to transform Nigeria into a crypto innovation hub, attracting both foreign investment and domestic entrepreneurial talent. The journey isn’t over, but the foundation is stronger than ever.