President Bola Ahmed Tinubu has signed the Investment and Securities Act 2024 into law. This landmark legislation officially classifies digital assets as securities, bringing them under the regulatory oversight of the Securities and Exchange Commission (SEC) Nigeria.
According to BusinessDay, this Act marks a major step forward for Nigeria’s digital economy—offering clarity for investors, guiding the operations of crypto-related businesses, and strengthening legal protections across the ecosystem.
Before this law, the regulation of digital assets in Nigeria operated in a grey zone. With this Act, Nigeria now has a clear legal framework for identifying and regulating digital assets. By classifying them as securities, the law provides a standard interpretation of what digital assets are—and how they should be treated.
This move brings legal certainty, reduces confusion, and is expected to boost investor confidence in the long run. Clear laws help investors make informed decisions, while entrepreneurs now have a structured regulatory environment in which to innovate responsibly.
The Investment and Securities Act 2024 introduces several critical provisions that directly impact the virtual asset space:
• Regulatory Oversight: Digital asset exchanges, custodians, wallet providers, and other Virtual Asset Service Providers (VASPs) are now required to register and comply with SEC Nigeria’s regulations.
• White Paper Submission: Projects that issue digital assets must now submit white papers, especially if they believe their token is not a security. This process helps the SEC assess whether a digital asset should fall under securities regulation or be exempt.
• Enhanced Investor Protection: The law introduces stricter penalties against Ponzi schemes and fraudulent investments. This is particularly important, given the rise in crypto-related scams in Nigeria, many of which have left everyday investors with significant losses.
For businesses in the crypto space, this law marks the beginning of a new era of accountability. Regulatory compliance may increase operational costs, but it also opens the door for safer innovation, institutional investment, and cross-border partnerships.
The rules are now clearer: if a digital asset meets the definition of a security, it must go through the same legal and regulatory processes as traditional financial instruments. While this may appear restrictive at first, it helps level the playing field and filter out bad actors, thereby strengthening the ecosystem.
With the passage of this Act, Nigeria is stepping ahead of many other African countries in digital asset regulation. As one of the most active crypto markets on the continent, Nigeria’s regulatory direction is likely to set the tone for others exploring how to balance innovation with oversight.
This law reflects a balanced approach—encouraging the growth of blockchain and digital finance while ensuring that investor interests are not compromised. It demonstrates Nigeria’s intent not just to participate in the global digital economy, but to help shape its regulatory foundation.
