The Securities Exchange Commission (SEC) of Nigeria has unveiled plans to license providers of virtual assets, including cryptocurrencies, in a bid to harness the growing opportunities in the sector while ensuring investor protection.
This decision aligns with the increasing adoption of digital assets across the country.
In an interview with Bloomberg, Emomotimi Agama, the SEC’s Director-General, announced that the commission aims to issue its first licenses for digital services and tokenized assets within this month.
Agama, known for his enthusiasm for crypto and fintech, expressed confidence in the initiative, stating, “This is going to happen sooner than you think.”
Agama highlighted the importance of supporting Nigeria’s youth, who are significantly engaged in the fintech sector, and acknowledged the substantial market potential of digital assets. “The market size is huge and it is growing,” he remarked.
The SEC’s licensing effort seeks to establish a formal framework for digital asset activities, enhancing regulation and data collection. While the SEC is supportive of innovation in fintech and cryptocurrency, Agama emphasized that the commission will not tolerate the use of cryptocurrencies for currency manipulation in Nigeria.
This regulatory development follows notable changes in Nigeria’s cryptocurrency landscape. In December 2023, the Central Bank of Nigeria (CBN) lifted its ban on cryptocurrency transactions, marking a policy shift. However, the federal government subsequently acted against Binance, a leading crypto exchange, for regulatory breaches.
In May, the SEC announced plans to delist the naira from all peer-to-peer (P2P) platforms, including Binance, to address market manipulation concerns.
Agama revealed in June that Nigeria’s cryptocurrency market is valued at over $400 million, with expectations that the volume of crypto transactions in the country will reach $52.5 million by 2028—a projected increase of 12.66 percent from 2024.
