Legal Musings on the Future of Digital Assets in Nigeria
Since the advent of technology, societies the world over have been playing catch-up especially in the area of establishing laws, systems, rules and regulations over the consistently evolving concept. For example, with the general public’s access to the internet, nation’s legislatures scrambled to enact laws which harmonized activities on cyberspace with traditional concepts such as privacy, child pornography, fraud, etc. Interestingly, this legal chase after technology has not abated today.
Digital assets, to most minds, is mysterious and akin to stardust – a cosmic phenomenon. As a lawyer whose mind has become too comfortable with physical concepts of wealth vis-à-vis the usual, limited intangible assets such as benefits that inured from intellectual property rights, grasping digital assets (particularly, cryptocurrencies) becomes a daunting task. The volatility and frequent value upheavals of cryptocurrencies further add to the trepidation of most people towards the asset but in further proof that many Nigerians are financial risk-takers, trading in cryptocurrencies has enjoyed enthusiastic patronage particularly amongst the teeming Nigerian population of persons between the ages of 25 and 45.
Cryptocurrencies can be loosely classified into volatile coins, stablecoins and central bank digital currencies. The confident exploration by America’s President Trump into cryptocurrencies has sparked renewed global interest with vigour into digital assets (recall that in January, 2025, Trump launched a meme coin in his name). Factor in the Trump-administration-led GENIUS ACT (The Guiding and Establishing National Innovation for US Stablecoins Act), the value of cryptocurrencies, including volatile coins like Bitcoin, has continued to increase along with interest in the concept of digital assets!
In Nigeria, it appears suspicion, caution with a sprinkling of ignorance on the part of government coupled with often erratic policymaking may negatively impact the stability of dependence on digital assets in Nigeria. In January, 2017, Nigeria’s Central Bank (CBN), depending on information from military and law enforcement authorities alleged that digital currencies were employed as funding tools for terrorism and money laundering and thus, ordered a clampdown on trades. The CBN doubled down in February, 2021 with another circular directing financial institutions to cease operations of any accounts trading in cryptocurrencies. However, in an unexpected policy backflip, the same CBN launched the eNaira (falling within the category of central bank digital currencies) in October, 2021!
Fortunately, the Nigerian government appears to have succumbed to the tidal wave of the inevitable flow of progress. Between 2022 and 2024, regulatory agencies like the Securities and Exchange Commission (SEC) and the CBN have proposed rules making way for the public trading of digital assets (including issuance of licenses to exchanges) or reversed altogether, previously imposed bans or restrictions. In April, 2025, Nigeria’s President Tinubu signed a historic Investment and Securities Act 2024 into law which legally recognized virtual asset service providers (VASPs) and empowered SEC to regulate digital assets.
In light of the foregoing, why then the cautious optimism? From June, 2015, the CBN has imposed restrictions on access to foreign exchange (further widening the demand-supply gap) whereupon, Nigerians observed a steady increase over the years in exchange rates (the restriction was only removed in October, 2023). Sometime around 2021/2022, the same CBN further restricted international transactions using naira debit cards as part of her policy at the time and this onerous, ill-advised policy was only recently reversed in July, 2025. It is safe to assume that having diametrically opposed policies cannot augur well for skittish digital assets like cryptocurrencies.
Our current, indisputable and inevitable reality is that digital assets along with ancillary activities have come to stay in Nigeria and would continue to grow as a trading option. It is therefore hoped that the Nigerian government would develop a level of predictable stability in policymaking in the immediate future to enhance and support the acceptance of and reliance upon digital assets especially cryptocurrencies in Nigeria.
