After years of inconsistent regulatory efforts, Nigeria is now signaling a firm commitment to overseeing its cryptocurrency industry, which has long operated in a largely unregulated environment. Obinna Iwuno, president of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), an advocacy organization, shared this perspective during a conversation with Chinedu Obidiegwu, Head of Business at Luno Nigeria, at the Moonshot event hosted by TechCabal on Thursday, October 16.
“While the regulatory framework for crypto is becoming clearer, we still have a way to go,” Iwuno remarked. “The Investment and Securities Act (ISA) of 2025, enacted in March, isn’t flawless, but it provides a foundation we can build upon. This means that anyone entering the market now is still considered an early participant.”
Since the start of 2024, Nigeria’s Securities and Exchange Commission (SEC) has taken strides to position itself as a progressive regulator. In June, it introduced the Accelerated Regulatory Incubation Programme (ARIP) alongside the Regulatory Incubation (RI) initiative, designed to pilot emerging crypto ventures within a controlled regulatory sandbox.
These sandbox programs have enabled the SEC to issue provisional licenses to seven crypto operators, allowing them to experiment with innovations such as stablecoins, tokenization, and asset-backed digital products. However, the progression to full licensing has been cautious, with the SEC citing extended due diligence processes to ensure that only compliant entities move forward.
Iwuno highlighted SIBAN’s role in fostering collaboration among crypto businesses, policymakers, and various regulatory bodies involved in monitoring crypto transactions. These include the Nigerian Communications Commission (NCC), the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), the National Information Technology Development Agency (NITDA), and the Ministry of Communications.
A key focus for SIBAN is educating all stakeholders to promote a comprehensive and coordinated regulatory approach, Iwuno explained.
“Nigeria has adopted a national blockchain policy emphasizing capacity building and the responsible adoption of cryptocurrencies,” he said. “While the ISA provides a regulatory framework, it doesn’t yet fully address the complexities of crypto. Our goal is to integrate crypto responsibly across both public and private sectors.”
Despite ongoing regulatory uncertainties, Nigeria has witnessed a rapid increase in digital asset adoption, driven largely by a youthful demographic seeking fast and convenient financial transactions.
Cryptocurrency offers unmatched utility in Africa, particularly for swift, high-value cross-border payments. Yet, the sector remains somewhat detached from traditional financial institutions due to regulators’ concerns over the absence of centralized control. To address this, SIBAN has championed compliance standards among operators to foster a self-regulatory environment, according to Iwuno.
“SIBAN has mandated that every operator implement at least two layers of identity verification to enhance security,” Iwuno noted. “This approach is building the trust necessary for market growth.”
Blockchain technology stands out as one of the few industries where individuals from diverse backgrounds and skill sets can contribute meaningfully. Its inclusive nature and vast potential for innovation make it an exciting field. Iwuno believes that the future belongs to those who actively develop, innovate, and deliver tangible value within the ecosystem.