Nigeria is poised to exit the Financial Action Task Force (FATF) grey list following the integration of cryptocurrency and digital asset regulation into the Investments and Securities Act (ISA 2025), recently signed into law by President Bola Tinubu. The act addresses key gaps in Nigeria’s anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks that led to its grey-listing in February 2023.
According to SEC Director-General Dr. Emomotimi Agama, the law’s passage signals a strong commitment to financial reform and global compliance: “The AML CFT issue is what brought about our inclusion in the grey list; the inclusion of this law provides us an avenue to exit that grey list, and that is very critical to the international community.”
The new framework gives the SEC enforcement powers over digital asset operators and introduces oversight mechanisms, including regulatory incubation programmes to evaluate institutional risk and encourage sustainable operations. These reforms aim to boost investor confidence, safeguard the market, and establish clearer Know Your Customer (KYC) standards.
ISA 2025 formally recognizes virtual assets as securities and sets rules for exchanges handling them, enabling better investor protection and infrastructure for secure trading. With support from the Central Bank of Nigeria, EFCC, and NFIU, the SEC aims to balance innovation with economic security.
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