In a move that could redefine Africa’s largest economy, Nigeria is edging closer to integrating cryptocurrency into its formal financial system. The Speaker of the House of Representatives, Abbas Tajudeen, has inaugurated an ad hoc committee tasked with reviewing the economic, regulatory, and security implications of cryptocurrencies and Point-of-Sale (POS) operations in the country.
The initiative marks a historic policy shift for a nation that has long wavered between cautious acceptance and outright restriction of digital assets. It reflects growing recognition of the role of crypto in financial inclusion, remittances, and youth empowerment, while also acknowledging the risks of fraud, cybercrime, and consumer exploitation in an under-regulated space.
A New Era of Crypto Policy
Speaking at the inauguration in Abuja, Tajudeen underscored the urgency of building a transparent and secure framework for Nigeria’s booming crypto sector.
“This ad hoc committee is absolutely necessary,” he said. “Its main job is to conduct public hearings to gather input from stakeholders that will guide the House in creating legislation for a regulatory framework for crypto adoption. This work will also guide the House in its oversight functions on the use of digital currencies in Nigeria.”
His remarks come as Nigeria experiences a record-breaking surge in crypto adoption. According to Chainalysis, Nigeria ranked 6th globally in crypto usage, receiving an estimated $92.1 billion in on-chain value between July 2024 and June 2025 — nearly half of Sub-Saharan Africa’s total $205 billion.
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From Crackdown to Collaboration
Nigeria’s journey with crypto has been anything but linear. In 2021, the Central Bank of Nigeria (CBN) banned commercial banks from facilitating crypto-related transactions, citing risks such as money laundering and terrorism financing.
The ban sparked backlash from the tech community and drove most trading into the shadows of peer-to-peer (P2P) platforms.
By late 2023, however, the CBN softened its stance, lifting restrictions and issuing guidelines for Virtual Asset Service Providers (VASPs) — a sign of a growing willingness to work with the sector.
This shift accelerated in March 2025, when President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025, which classified cryptocurrencies as securities, bringing them under the jurisdiction of the Securities and Exchange Commission (SEC).
For the first time, Nigeria had a legal foundation to regulate crypto trading, custody, and issuance — creating a path for formal integration of digital assets into the economy.
The Push for Balanced Regulation
While the legal groundwork has been laid, the regulatory framework is still evolving. Tajudeen’s committee is expected to lead public hearings across the country, consulting with the CBN, SEC, fintech leaders, consumer advocacy groups, and law enforcement.
The goal: to draft laws that encourage innovation while safeguarding consumers from scams and cybercrime.
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“The growth of crypto cannot come at the expense of public trust,” one committee insider told reporters. “We need guardrails that protect people without stifling innovation.”
Nigeria’s need for tighter oversight is underscored by recent waves of crypto-related fraud and Ponzi-style schemes, which have drained savings from young investors and first-time users.
Experts argue that clear rules and enforcement will not only protect consumers but also attract foreign investment, as global exchanges and fintech firms seek transparent, stable markets.
A Potential Turning Point for Africa’s Crypto Future
With one of the world’s largest populations of crypto users and a tech-savvy youth eager for alternative financial tools, Nigeria’s pivot toward structured regulation could set the tone for Africa’s crypto economy.
If the new laws strike the right balance between oversight and innovation, Nigeria could emerge as a continental hub for blockchain and digital finance, drawing startups, investors, and talent.
The stakes are high. Overregulation could drive innovation back underground, while underregulation could leave consumers exposed. But the government’s latest steps signal a new willingness to embrace crypto as a legitimate part of the economy.
The Road Ahead
The ad hoc committee’s findings will help shape licensing requirements, compliance obligations, and penalties for violations, laying the foundation for a new digital economy.
For now, optimism outweighs skepticism. As Tajudeen noted, crypto is no longer a fringe asset in Nigeria — it’s fast becoming part of the country’s financial mainstream.
The coming months could determine whether Nigeria cements its position as a crypto-friendly global player or falls back into regulatory uncertainty.
Either way, the country’s shift from crackdowns to constructive dialogue signals that the future of finance in Nigeria will be digital — and crypto will likely play a starring role.
