Nigeria’s Securities and Exchange Commission (SEC) is moving to bring more of the country’s rapidly expanding digital asset market under formal regulatory oversight.
But the growing scale of crypto activity means the regulator now faces a bigger challenge, that is, turning a largely market-driven ecosystem into a compliant and investor-protected financial market.
The SEC recently cleared three virtual asset service providers—Blockchain, Pisi Payments Solution Limited and Yellow Card Financial Limited—for admission into its Accelerated Regulatory Incubation Programme (ARIP).
Pinnacle Daily reports that the latest admission brings the number of firms under the SEC’s structured regulatory framework to 14.
With the clearance, the companies have received Approval-in-Principle to operate within the defined scope of ARIP, subject to regulatory, operational and supervisory conditions.
While the approval is not a final licence, it allows the firms to test their business models in a controlled environment while demonstrating compliance with the SEC’s requirements.
The timing is significant because Nigeria is already one of the largest digital asset markets in Africa.
$92bn Market Creates Bigger Regulatory Challenge
Nigeria received about $92.1 billion in cryptocurrency value between July 2024 and June 2025, according to Chainalysis.
The figure placed Nigeria at the top of Sub-Saharan Africa, with the country receiving nearly three times the value recorded by South Africa.
The scale of activity suggests that regulation is no longer simply about creating rules for a small emerging technology sector, as it is increasingly about bringing a significant financial activity into a formal framework.
Chainalysis’ 2025 Geography of Cryptocurrency report also identified Nigeria among the world’s leading crypto-adopting countries, with usage driven by different needs including remittances, investment and savings.
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The latest SEC action therefore represents a shift from simply acknowledging the growth of digital assets to testing how major operators can function within Nigeria’s regulated financial system.
From Crypto Adoption to Formal Oversight
The scale of Nigeria’s crypto market has been visible for some time. An IMF report published in 2025 said Nigeria recorded about $59 billion in crypto transactions between July 2023 and June 2024.
The IMF’s latest assessment also said Nigeria accounted for roughly 60 per cent of stablecoin inflows into Sub-Saharan Africa since 2019.
The IMF has linked the growing use of stablecoins in Nigeria partly to cross-border transfers and the search for faster and cheaper alternatives to traditional channels.
It also highlighted the potential implications for monetary policy, financial regulation and illicit financial activity.
This creates the central policy challenge for the SEC, which is that the regulator must provide enough oversight to protect investors and reduce financial risks without creating rules that push legitimate businesses and users outside the formal system.
Global Operators Enter Nigeria’s Regulatory Framework
The admission of Blockchain and Yellow Card is particularly significant because it brings established digital asset businesses further into Nigeria’s regulatory process.
Blockchain said its participation would allow it to work directly with the SEC as the regulator evaluates digital asset business models, tests safeguards and develops a longer-term framework for the sector.
“Nigeria is one of Africa’s most important digital asset markets and participating in the SEC’s ARIP is an important step forward in our long-term commitment to the country,” the General Manager for Africa at Blockchain, Owen Odia, stated.
The company said the programme would provide a controlled environment for introducing its global experience to Nigeria while working with regulators on consumer protection, transparency and responsible innovation.
Blockchain said it operates in more than 70 jurisdictions and has more than 95 million wallets and over 44 million confirmed accounts, with more than $1.2 trillion processed through its platform.
For Nigeria, the participation of larger international operators could provide an opportunity to bring global compliance practices and technology into the domestic market. But it also increases the need for regulators to ensure that international platforms operating locally meet Nigerian standards.
Test Is What Happens After Approval
The expansion of ARIP means the immediate issue is no longer simply how many crypto firms the SEC can admit. The more important test is whether the regulatory process can produce firms that are fully compliant and accountable to Nigerian users.
Approval-in-Principle does not amount to a final operating licence as the firms remain subject to the conditions of the programme while the SEC evaluates their operations.
That distinction is important in a market where the volume of transactions is already large.
The SEC’s regulatory approach is therefore being tested against a market that grew faster than formal oversight. The regulator must now determine whether its sandbox can effectively monitor business models, identify risks and establish safeguards before companies move into full operation. The challenge is even greater because crypto activity extends beyond traditional securities trading into payments, transfers and other financial services.
Nigeria’s experience also shows why the issue goes beyond investor protection. The IMF has warned that increasing use of stablecoins for cross-border transactions could complicate financial regulation and create implications for monetary policy. (Reuters)
Can Regulation Capture the Economic Value?
The SEC’s latest move could mark an important stage in the formalisation of Nigeria’s digital asset market. But the success of the policy will ultimately depend on whether regulation can match the scale and changing nature of crypto activity.
Nigeria already has a market processing tens of billions of dollars in digital assets. The challenge now is to ensure that this activity is conducted through transparent and supervised channels, while preserving room for innovation.
The admission of 14 firms into ARIP shows that the regulatory framework is expanding. The bigger question is whether that framework can turn Nigeria’s huge crypto adoption into a market where investors are protected, legitimate businesses can scale, and regulators have enough visibility to manage the risks.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X