Skip to content
Nigeria has emerged as a leading hub of crypto-fintech innovation in Africa, driven by a tech-savvy youth population and economic instability. However, this growth has occurred amidst conflicting regulatory approaches, particularly between the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC),
resulting in uncertainty for operators, investors, and consumers. This paper examines the legal and economic implications of this regulatory divide and draws on comparative international models to propose a unified legal framework. It recommends the establishment of a statutory inter-agency commission, the enactment of a comprehensive Virtual Asset Regulation Act, the institutionalisation
of a joint regulatory sandbox, and the launch of a unified compliance portal to ensure clarity, investor protection, and innovation.
Introduction
The emergence of blockchain and cryptocurrency technologies has catalysed a digital finance revolution in Nigeria. Ranked among the top ten countries globally for crypto adoption, Nigeria’s growing fintech ecosystem is fueled by youth-led demand for alternative financial solutions. [1] However, the sector operates in a near legal vacuum, largely due to the conflicting stances of the Country’s primary financial regulators, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). This paper evaluates the regulatory tensions between these regulators, the legal uncertainty created thereby, and how Nigeria can adopt best practices from international regulatory frameworks to harmonize its crypto-fintech landscape.
Add your first comment to this post