ABUJA – Nigeria is poised to unlock billions in digital asset investment and exit the Financial Action Task Force (FATF) grey list, following the inclusion of digital asset regulation in the newly signed Investments and Securities Act (ISA) 2025 by President Bola Ahmed Tinubu.
Thank you for reading this post, don't forget to subscribe!The Securities and Exchange Commission (SEC) disclosed that the country’s inclusion of cryptocurrency and blockchain regulation into its legal framework marks a critical compliance step that could see Nigeria removed from FATF’s grey list — a status that has slowed foreign capital inflow and raised international scrutiny since February 24, 2023.
The Market Size and Economic Impact
• Nigeria’s crypto trading volume was valued at $56.7 billion between July 2022 and June 2023, according to Chainalysis.
• The global cryptocurrency market is projected to surpass $10 trillion by 2030, offering Nigeria a significant opportunity to tap into digital finance for economic growth.
• SEC’s Regulatory Incubation Programme and Accelerated Incubation Programme aim to onboard legitimate crypto businesses safely, starting with a new cohort of approved operators expected next quarter.
What the SEC is Saying
Speaking in Abuja on Wednesday, SEC DG Dr. Emomotimi Agama said:
“The AML/CFT issues that led to our inclusion on the FATF grey list are now being addressed. The new law gives SEC the legal muscle to monitor and regulate digital asset transactions, clamp down on fraudulent schemes, and protect Nigeria’s financial system.”
He noted that the Investments and Securities Act 2025 empowers the SEC to regulate cryptocurrency exchanges, token offerings, and blockchain-based financial services, providing legal clarity and risk management tools for market operators.
Agama emphasized that the regulation does not criminalize crypto but ensures the space operates transparently:
“We now have the power to guide and, where necessary, sanction operators. It’s about building fences — not blocking the road.”
Grey List and Global Image
The FATF grey list includes countries under increased monitoring due to strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks. Nigeria joined the list alongside South Africa, UAE, and others, with potential risk to international investor confidence and financial access.
“The law is not just domestic policy,” Agama added. “It’s a message to the international community — we are open for secure and compliant digital business.”
Key Reforms and Regulatory Partnerships
• SEC is collaborating with:
• Central Bank of Nigeria (CBN)
• Economic and Financial Crimes Commission (EFCC)
• Nigeria Financial Intelligence Unit (NFIU)
• Office of the National Security Adviser (ONSA)
• Risk management frameworks are being institutionalized to mitigate digital fraud, protect investors, and boost Know-Your-Customer (KYC) compliance across platforms.
What’s Next?
Agama hinted at an upcoming announcement of successful applicants in the next Regulatory Incubation Cohort, based on a risk evaluation model that balances innovation with economic stability.
“With the tools we’re putting in place, Nigeria could transform its digital asset space into a $10 billion industry by 2030, attracting jobs, taxes, and investments,” he said.
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