Nigeria: crypto & digital assets regulation

Who regulates

• Securities and Exchange Commission Nigeria (SEC)

  Primary regulator for digital assets classified as securities, including issuers, offering platforms, custodians, and Virtual Assets Service Providers (VASPs).

  ^{[1][2][3][4][5][6]}

• Central Bank of Nigeria (CBN)

  Regulates financial institutions' interactions with Virtual Assets Service Providers (VASPs) and previously prohibited cryptocurrency transactions.

  ^[7][8][9]

• Nigerian Financial Intelligence Unit (NFIU)

  Focuses on Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) compliance for VASPs.

  ^{[10][11][12][13]}

• Financial Services Regulation Coordinating Committee (FSRCC)

  Coordinates financial system stability and mandates strengthened oversight of fintech and digital assets.

  ^[14]

• Nigeria Deposit Insurance Corporation (NDIC)

  Protects depositors and ensures financial system stability.

  ^[15]

• Economic and Financial Crimes Commission (EFCC)

  Investigates financial crimes, including those involving digital assets.

  ^[16]

Core laws & rules

• SEC Rules on Issuance, Offering Platforms and Custody of Digital Assets (2022)

  Classifies digital tokens as securities and mandates strict operational frameworks for issuers, offering platforms, and custodians, requiring detailed whitepapers and compliance.

  ^[3]

• SEC Statement on Digital Assets and Their Classification and Treatment (2020/2021)

  Presumes virtual crypto assets to be securities unless proven otherwise by the issuer, mandating registration for assets deemed securities and all participants in digital asset services.

  ^[1][2]

• CBN Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPs) (2024)

  Provides guidelines for financial institutions regarding their relationships with VASPs, aiming to regulate these entities due to money laundering and terrorism financing risks.

  ^[9]

• SEC ARIP Framework For The Onboarding Of VASPs (2024)

  Introduces the Accelerated Regulatory Incubation Program (ARIP) to streamline the registration and onboarding process for Virtual Assets Service Providers (VASPs) and Digital Investments Service Providers (DISPs).

  ^[4]

Licensing & registration

• Virtual Assets Service Providers (VASPs) and Digital Investments Service Providers (DISPs)

  Entities must undergo the SEC's Accelerated Regulatory Incubation Program (ARIP) to obtain an Approval-in-Principle (AIP), permitting operation within a controlled regulatory sandbox.

  ^[4][5][6]

• Issuers, Offering Platforms, and Custodians of Digital Assets

  Digital tokens are classified as securities unless proven otherwise, requiring strict operational frameworks and registration with the SEC. Issuers must file detailed whitepapers for regulatory assessment.

  ^[3][1][2]

Restrictions & warnings

• The Central Bank of Nigeria (CBN) previously prohibited financial institutions from dealing in cryptocurrencies or facilitating payments for crypto exchanges, directing the closure of associated accounts.

  ^[7][8]

• The SEC actively warns against and declares illegal unregistered crypto platforms, unauthorized meme coins, and Ponzi schemes, emphasizing that such assets lack intrinsic value and are highly speculative.

  ^{[17][18][19][20][21][22][23][24][13]}

Direction of travel

• Nigeria is actively developing and implementing a comprehensive regulatory framework for digital assets, moving towards a more structured and supervised environment for VASPs and other digital investment services.

  ^{[4][9][14][5][6]}

• A strong emphasis remains on combating money laundering, terrorism financing, and proliferation financing risks associated with virtual assets, with ongoing guidance for VASPs from the NFIU.

  ^[10][11][12]

• Regulators continue to prioritize investor protection through alerts against unregistered entities and speculative assets, while fostering innovation through controlled environments like the ARIP.

  ^[19][17][4]

Sources

1. Statement on Digital Assets and Their Classification and Treatment · 2020-09-14
2. SEC Statement on Digital Assets and Their Classification and Treatment · 2021-02-11
3. Rules on Issuance, Offering Platforms and Custody of Digital Assets · 2022-05-13
4. Arip Framework For The Onboarding Of Vasps 4624 · 2024-06-04
5. SEC Nigeria Clears Two Additional VASPs for Admission into ARIP · 2026-07-03
6. SEC Clears Seven New Fintech Firms for Admission into the Accelerated Regulatory Incubation Programme (ARIP) · 2026-07-02
7. Circular to Banks and Other Financial Institutions on Virtual Currency Operations in Nigeria · 2017-01-16
8. Letter to All Deposit Money Banks, Non-Financial Financial Institutions and Other Financial Institutions · 2021-02-05
9. Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPs) · 2024-01-02
10. virtual Assets And Virtual Assets Service Providers (vasps) Aml/cft Implications For Giaba Member States · 2020-12-24
11. executive Summary Of Royal United Services Institute (rusi) Guidance On Counterproliferation Financing For Virtual Assets Service Providers (vasps) · 2022-11-24
12. national Amlcftcpf Strategy 2023 2027 · 2023-07-27
13. Advisory on Ponzi schemes in Nigeria · 2025-04-29
14. Financial Services Regulation Coordinating Committee Communique · 2026-06-05
15. NDIC Quarterly Vol 39 No 3&4 2024 – Article front page · 2025-12-09
16. EFCC Establishment Act 2024 · 2004-10-20
17. Warning Against Investing With Binance · 2023-07-28
18. Circular on the Activities of Binance Nigeria Limited · 2023-06-09
19. Investor Alert – $Davido Meme Coin Disclaimer · 2024-06-14
20. SEC Alert: Marino FX Ltd Unregistered and Unlicensed in Nigeria · 2024-11-25
21. CBEX (Crypto Bridge Exchange) and ST Technologies International Ltd Unregistered Digital Asset Advisory · 2025-04-17
22. SEC Public Notice on Unregistered Tofro.com · 2025-04-30
23. Illegal Operator Alert - Punisher Coin · 2025-06-05
24. SEC Alert on Unauthorized ZUGACOIN and SAMZUGA GPT · 2025-06-17