Regulation of Virtual Assets in Nigeria
Abstract
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following the enactment of the Investment and Securities Act (ISA) 2025, which repealed the 2007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.
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How to Cite
Agama, E. (2025). Regulation of Virtual Assets in Nigeria. Bayero University Journal of Finance, 2(1), 166-175. https://doi.org/10.67894/bjf.2025.sfmyqonl
E. Agama, "Regulation of Virtual Assets in Nigeria," Bayero University Journal of Finance, vol. 2, no. 1, pp. 166-175, June 2025. doi: 10.67894/bjf.2025.sfmyqonl
