Regulation of Virtual Assets in Nigeria

Nigeria’s regulatory architecture for virtual assets is undergoing significant transformation, following the enactment of the Investment and Securities Act (ISA) 2025, which repealed the 2007 framework. A key innovation of the new Act is the formal recognition of digital and virtual assets as securities, along with granting the Securities and Exchange Commission explicit statutory authority to regulate this asset class. Since 2020, the SEC has issued targeted rules for virtual assets that qualify as securities, including frameworks for Virtual Asset Service Providers (VASPs), offering platforms, and custodians in an attempt to integrate VASPs into the existing capital market ecosystem and ensure transparency, investor protection, and systemic stability. The ISA 2025 provided the long-awaited legal certainty in a previously ambiguous domain. This paper examines the evolution of Nigeria’s virtual asset regulatory regime, highlighting progress in oversight mechanisms. Given the swiftly evolving landscape of virtual assets, the study highlights the need for regulatory flexibility and recommends continuous cooperation among financial sector regulators for building a robust, inclusive, and globally competitive capital market capable of using virtual assets as a tool for mobilising investment and promoting economic development.