The Nigerian Senate is urging the Federal Government to break its silence on cryptocurrency and move swiftly to regulate the booming digital asset industry in the country, warning that continued hesitation could see Nigeria lose out on massive economic benefits.
Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, made this call on Friday during a media parley in Abuja.
He stressed that Nigeria—currently ranked second in global cryptocurrency usage—must no longer ignore the digital financial revolution unfolding both within and outside its borders.
“Our young people are thriving in the crypto space, but due to the absence of regulation, billions of naira worth of assets are leaving our economy untaxed and unmanaged,” Izunaso said. “The Central Bank may have rejected crypto initially, but the blockchain does not wait for regulation—it operates with or without us.”
According to recent data, Nigeria recorded approximately $59 billion in cryptocurrency transactions between July 2023 and June 2024.
This surge, largely fueled by inflation, naira depreciation, and the search for alternative investment channels, places Nigeria as a global hub for digital finance adoption.
But despite the booming activity, Izunaso warned that the lack of a structured regulatory environment has exposed investors to fraud, capital flight, and a growing wave of Ponzi schemes disguised as crypto platforms.
The senator revealed that the recently assented Investment and Securities Act 2025—which he sponsored—has formally legalised cryptocurrency in Nigeria and now places digital assets under the oversight of the Securities and Exchange Commission (SEC).
“This law is a game-changer,” he said. “For the first time, Nigeria has an omnibus legislation that recognises digital assets as part of our financial ecosystem and provides a strong legal framework for their use.”
He also announced tough new penalties to tackle financial crimes. Under the new law, operators of Ponzi schemes face up to 20 years imprisonment, a move Izunaso says is meant to “protect Nigerians from fraudulent traps that always end in tears.”
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Crypto Regulation Key to Tinubu’s $1 Trillion Economy Vision
Senator Izunaso linked the importance of a robust capital market—including digital finance—to President Bola Tinubu’s target of building a $1 trillion economy.
“You can’t get to a trillion-dollar economy without unlocking capital, and crypto is a powerful vehicle for that.
The money market alone can’t carry that ambition. We need to give space for innovation, and that’s what this Act does,” he added.
He acknowledged that while the Central Bank’s e-Naira initiative struggled to gain traction, the inclusion of digital assets under the SEC could offer the structural support needed to push Nigeria’s digital finance agenda forward.
As part of efforts to sensitize Nigerians, Izunaso disclosed that a national awareness campaign will soon be launched to unveil the full provisions of the new Act.
“This is not the SEC of the past,” he emphasized. “There are new tools, new protections, and new opportunities available. It’s time the public knew what this law means for them.”
With digital finance rapidly shaping the global economy, Senator Izunaso maintained that regulating crypto in Nigeria is no longer just a policy option—it’s an economic imperative.