ISA 2025: Nigeria Embraces Crypto Regulation in Landmark SEC Reform

Nigeria has taken a historic step toward crypto adoption with the formal recognition of cryptocurrencies as securities under the newly signed Investment and Securities Act (ISA) 2025. Signed into law by President Bola Tinubu, the Act ends over a decade of regulatory ambiguity around digital assets and establishes a new chapter for blockchain innovation in Africa’s largest economy.

The ISA 2025 designates cryptocurrencies, virtual assets, and investment contracts as securities and subjects them to regulation under the Securities and Exchange Commission (SEC). This shift comes as Nigeria continues to rank second globally in crypto adoption, according to the Chainalysis 2024 report. The country’s high volume of peer-to-peer and stablecoin transactions has long outpaced its formal regulatory stance—until now.

From P2P Workarounds to Formal Recognition

This regulatory breakthrough marks a dramatic departure from Nigeria’s previously restrictive stance on cryptocurrencies. For years, traders operated in a grey area, relying heavily on peer-to-peer (P2P) transactions due to the lack of official support.

Crypto trading activity continued underground despite earlier CBN crackdowns, with platforms like Binance adapting to support the Nigerian market via P2P infrastructure. The turning point came in 2023, when Tinubu’s administration began easing its stance, signaling a broader economic reform effort.

The ISA 2025 has now aligned Nigeria’s capital markets with global regulatory practices and supports the nation’s goal of retaining its “Signatory A” status under IOSCO’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This move is expected to boost investors’ confidence and attract international capital to Nigeria’s growing tech and fintech sectors.

A New Era of Crypto Oversight and Capital Market Reform

The ISA defines securities exchanges to include platforms dealing in digital assets, marking a direct inclusion of crypto markets into Nigeria’s financial system. In doing so, the law aims to protect investors, reduce fraud, and foster accountability. SEC Director-General Dr. Emomotimi Agama has praised the reform as an important to reposition Nigeria as a competitive financial hub. “By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation,” he stated.

Despite the progress, industry experts urge more strategic clarity. Femi Adegolu, CEO of Bchain Africa, acknowledged the development as a game changer but called for a clearer roadmap for crypto implementation. “The growth will evolve gradually… there’s not a full clear roadmap on what needs to be achieved,” he said.

Conclusion: Nigeria Steps Into a New Crypto Era

The Nigeria crypto regulation 2025 milestone brings long-awaited legitimacy to the country’s thriving digital asset market. With crypto now legally recognized as securities and platforms brought under SEC oversight, the regulatory groundwork is finally set. As implementation unfolds and policymakers refine the framework, the ISA 2025 has the potential to transform Nigeria into a crypto innovation hub, attracting both foreign investment and domestic entrepreneurial talent. The journey isn’t over, but the foundation is stronger than ever.