Nigerian authorities are gradually moving to regulate Africa’s largest cryptocurrency market, aiming to create legal certainty while tackling fraud and volatility. Despite ranking second globally in crypto adoption, Nigeria has struggled with scams and money laundering concerns.
The Securities and Exchange Commission (SEC) granted “Approval-in-Principle” to two exchanges—Busha Digital Limited and Quidax Technologies Limited—marking a step toward formalizing the sector. However, skepticism remains, particularly after the Economic and Financial Crimes Commission (EFCC) arrested 792 suspects in December for crypto-related fraud.
Beyond exchange approvals, Nigeria’s parliament is considering a bill to establish a regulatory framework for digital currencies. While President Bola Tinubu initially signaled support for crypto adoption, his administration later imposed restrictions, including targeting Binance over currency depreciation concerns. The exchange now faces an $81.5 billion tax lawsuit.
Despite challenges, industry leaders see progress. “Regulatory clarity and policies should be prioritized now,” said Obinna Iwuno, president of the Stakeholders in Blockchain Association of Nigeria (SiBAN).
As Nigeria balances regulation with innovation, clear policies could determine whether the country benefits from its booming digital asset market or stifles its growth.
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