Nigeria Drafts Unified Crypto Rules as $400M Digital Market Expands
Nigeria’s regulators are repositioning the country’s digital finance landscape. CBN Governor Olayemi Cardoso has confirmed a partnership...
Quick overview
- Nigeria's regulators are collaborating to create a digital currency framework, marking a significant policy shift under President Bola Tinubu's administration.
- The Central Bank of Nigeria (CBN) has relaxed its previous restrictions on cryptocurrencies, allowing the Securities and Exchange Commission (SEC) to take the lead in regulation.
- This new approach aims to support innovation, consumer protection, and financial inclusion in Nigeria's rapidly growing digital finance landscape.
- With over 22 million Nigerians involved in crypto, this partnership positions Nigeria as a potential regional leader in digital finance governance.
Nigeria’s regulators are repositioning the country’s digital finance landscape. CBN Governor Olayemi Cardoso has confirmed a partnership with the SEC to create a digital currency framework. This is a big policy shift under President Bola Tinubu’s administration.
Cardoso said regulators want to “midwife a sustainable framework” that supports innovation and the financial system. This is a departure from years of hostility towards cryptocurrencies, and a more balanced and strategic approach to the growing digital asset space.
From Ban to Regulation
Until early 2023, Nigeria had one of the toughest stance against crypto in Africa. Under former CBN Governor Godwin Emefiele, banks were barred from serving crypto-related entities. This directive was heavily criticized and created a jurisdictional conflict between the CBN and the SEC, leaving startups uncertain and stifling innovation.
Since May 2023, the tone has changed. The CBN has relaxed its restrictions and given the SEC the lead in regulating crypto. This comes as Nigeria is one of the fastest growing crypto adopters in the world – with $400 million in annual crypto transactions, according to industry data.
Key Changes:
- CBN and SEC are working on a national digital currency policy.
- CBN is “surprised” by crypto’s rapid growth.
- New frameworks will focus on consumer protection and financial inclusion.
This coordinated approach shows regulators know crypto is no longer a niche trend but a part of Nigeria’s economic landscape.
Nigeria’s New Role in Digital Innovation
While details of the framework are still unknown, the partnership means a unified regulatory model. By overseeing and encouraging responsible innovation, Nigeria is positioning itself as a regional leader in digital finance governance.
Analysts believe this could attract fintech investments and boost confidence among local and international players. As Cardoso put it, the focus is on ensuring “digital currency innovation evolves within a sustainable and secure environment”.
With over 22 million Nigerians in crypto, this policy shift could change how Africa’s largest economy navigates the digital revolution.
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