Nigeria’s Digital Asset Future: Stuck between Regulation and Surveillance

The African digital asset landscape is shifting beneath our feet. Ghana has just officially passed its Virtual Asset Service Providers (VASP) Bill 2025 into law, joining Kenya, which achieved a similar legislative milestone this year. The Bill now awaits presidential assent. As Nigeria’s neighbors celebrate clear, statutory frameworks, many stakeholders in Nigeria are left with a familiar sense of disappointment—and understandably so.

Despite being a global leader in crypto adoption, Nigeria remains in a paradoxical state: we have more “regulation” than ever, yet the industry feels stuck.

Acknowledging the Green Shoots of Progress

It would be unfair to say nothing has happened in Nigeria. Over the last two years, we have seen significant institutional shifts that deserve acknowledgment:

1. The National Assembly’s AML/CFT Framework Amendments: Nigeria recorded a significant milestone when the National Assembly introduced new AML/CFT laws—specifically the Money Laundering Act 2022 and the Terrorism Act 2022—to recognize virtual asset service providers as financial institutions for the purpose of AML/CFT compliance.

2. NITDA’s Vision: In June 2023, the National Information Technology Development Agency (NITDA) pioneered and promoted the National Blockchain Policy in collaboration with the Federal Ministry of Communications and the Digital Economy, and the Presidency, providing a high-level roadmap for adoption.

3. The CBN’s Reversal: In December 2023, the Central Bank of Nigeria (CBN) officially reversed its 2021 anti-crypto stance, providing a pathway for VASPs to be onboarded by banks and financial institutions—although hinged on the condition of obtaining SEC license (or approval).

4. The SEC’s Framework: The Securities and Exchange Commission (SEC) introduced the Accelerated Regulatory Incubation Program (ARIP) and supported the Investments and Securities Act (ISA) 2025, which—although in a questionable blanket fashion—gives all digital assets a formal home as securities.

5. The NFIU’s Integration: The Nigerian Financial Intelligence Unit (NFIU) has taken a progressive step by incorporating VASPs into its goAML platform, fostering transparency and AML/CFT compliance.

6. The EFCC’s Vigilance: The Economic and Financial Crimes Commission (EFCC) continues its work in generally curbing crypto-related financial crimes, ensuring that the ecosystem is clean of bad actors.

7. The FIRS’s New Fiscal Frontier: Crucially, the Federal Inland Revenue Services (“FIRS” or “Nigeria Revenue Service” from 2026) has formalized crypto taxation. Under the new tax reforms, profits from digital assets are now “chargeable gains.” Starting January 2026, individuals will face progressive taxes up to 25%, and VASPs will be integrated into a 30% Corporate Income Tax regime, amongst others.

The Reality: Stuck Between Mountains and Secrecy

Despite the significant milestones highlighted above, a disconnect remains—and apparently and undeniably so. Nigeria appears to be trapped between mountains of regulation—where the cost and complexity of compliance are often prohibitive for local startups—and the secrecy of surveillance, where the industry is viewed through a lens of suspicion rather than growth.

As I see it, especially in the course of my policy work in this emerging sector across Africa, there are two major differences between the approach taken by Ghana/Kenya and the approach by Nigeria:

1. The Level of Political Will

In Ghana and Kenya, we see a unified government stance. In Nigeria, despite agency-level progress, there is an apparent absence of top-tier political leadership. 

Specifically, I personally believe that the Federal Minister of Finance should “own” the digital finance narrative. This is vital for alignment. Rather, instead of a unified message, what we are presently witnessing is a fragmented one, where the CBN, FIRS, SEC, and noticeably the Office of the National Security Adviser (ONSA) often appear to be pulling from various and different directions. Who is really the regulator?

2. Opportunity vs. National Security Risk

This is the fundamental shift in mindset. Ghanaian and Kenyan regulators tend to now view crypto as an opportunity to leverage for economic growth, financial inclusion, and foreign investment, a stark difference from how they used to view it.

Conversely, Nigerian authorities still largely view crypto as a national security risk to be contained. When we treat the world’s most populous black nation’s crypto market as a security problem rather than an economic conversation, we lose the “Digital Finance” plot.

3. The Human Cost: Innovators as Suspects

The consequence of this “security-first” approach is that security agencies slowly and surely—though unintended—become the de facto regulators, while regulators effectively provide regulatory data for surveillance. When the primary interaction an innovator has with the state is through the lens of surveillance, innovators become potential suspects, not potential captains of a new multi-billion dollar industry. This “policing of innovation” drives talent underground or across borders—often to places that support innovation with promise, not police them with suspicion. No great nation has ever been built in this way—at least none that I know of.

The Way Forward: Waking the “Sleeping Man”

Over the years, Nigeria has done the hard work of creating rules; now it must find the soul to apply them constructively. It’s time we had definite regulatory timelines, and became more intentional with execution. It’s time full licensing really kicked off. While one cannot wake a man who pretends to be sleeping, one can at least point out that the world is moving on without him.

Recommendations for Nigeria

1. Unified Leadership: The Ministry of Finance must lead a digital economy taskforce to harmonize the efforts of the CBN, FIRS, SEC, and NITDA, ensuring regulation facilitates growth rather than just restriction. As Ghana is about to demonstrate from 2026, dual regulation is feasible, depending on the relevant use cases, whether as investments or payments; remittances; and settlements. And yes, we can have these regulators collaborate, launch, and operate a one-stop, RegTech-enabled Virtual Asset Service Providers Regulations Office (VASPRO), where applications for registration and licensing can be centrally coordinated.

2. Developmental Regulation: Nigeria must shift from a purely restrictive model which often emphasizes enforcements to “developmental regulation”—creating tiered licensing that allows smaller, local innovators to grow without being crushed by the same requirements as global giants. Also, the global giants must see that Nigeria is truly ready to globally compete in every dimension, and not only be told—show, don’t just tell.

3. Economic Re-framing: Move the crypto conversation from the “Situation Room” to the “Economic Council.” Crypto is one strategic financial technology innovation for economic growth that the National Economic Council, which is chaired by the Vice President, could add to its portfolio. Yes—economic growth, not economic sabotage. We need to talk about GDP, jobs, and FDI, not just suspicious transactions. Today, tomorrow, and forever, there are—and will be—way more good actors than bad actors out there. Innovators are here to build and collaborate, not kill and isolate. 

4. Legislative Leverage: Primary legislation, by way of statutes, remains a critical backbone of innovation, no matter how creative regulators try to be with the tool of subsidiary legislation by way of rules. Ghana and Kenya have set a precedent by enacting dedicated Virtual Asset Service Providers Acts, underscoring the importance of tailored legislation. Nigeria, too, stands to benefit from a legislative approach—one that leverages the authority of the National Assembly, and its inherently rigorous multi-stakeholder and public-facing law-making process. This is why I believe what the House of Representative’s Ad Hoc Committee on the Economic, Security and Regulatory Implications of Cryptocurrency and POS is currently working on is worth our attention. I appeared before this Ad Hoc Committee in October where, in my capacity as the Executive Chair of the Steering Committee of the Virtual Asset Service Providers Association (VASPA), I had the privilege of presenting a paper on the need for Nigeria to have an overarching legal framework for virtual asset services in Nigeria.

The digital finance landscape is evolving across Africa, and digital asset is, most unavoidably, a significant part of this. In my policy advocacy work across the African continent, I have seen the evolution of regulation, from outright bans to tough restrictions; from deliberate containment to intentional support. Nigeria, my home country, is the giant of the continent—at least in a number of ways. Over the last 7 years of my professional engagement with this emerging sector, I have seen the heavy cloud of uncertainty and lack of clarity—fed by the fear of the unknown and the known—hold back a promising journey of adoption. It is time we stopped acting like we are afraid of the future we helped build. Unleash the chained anchor.