Nigeria’s SEC to Regulate Virtual Asset Service Providers Under New Law

The Nigerian Investment and Securities Act (ISA) 2025, recently signed by Nigerian President Bola Ahmed Tinubu, effectively ends the uncertainty surrounding the status of cryptocurrencies, with the new bill effectively repealing the Investment and Securities Act No. 29 of 2007. This revised securities law "officially" recognizes cryptocurrencies as an asset class. This recognition not only eliminates the uncertainty surrounding cryptocurrencies, but also means that they are no longer prohibited assets. In addition, law enforcement agencies that have been "harassing" people involved in these assets will have to stop such behavior.

Emomotimi Agama, Director General of the Nigerian Securities and Exchange Commission (SEC), said that the new law gives the SEC the power to promote innovation and protect investors more effectively, which repositions Nigeria as a competitive destination for domestic and foreign investment. In addition to recognizing digital assets and investment contracts as securities, the Investment and Securities Act 2025 also explicitly brings virtual asset service providers (VASPs) under the regulatory scope of the Nigerian Securities and Exchange Commission. The law also prohibits Ponzi schemes and imposes severe penalties, including imprisonment, on the planners of such schemes.