The Senate Committee on Capital Market on Friday called on the Federal Government to regulate and formalise cryptocurrency trading in the country to protect investors and tap into Nigeria’s booming digital asset economy.
Speaking during a media parley in Abuja, Chairman of the Committee, Senator Osita Izunaso, underscored the urgency of embracing digital finance, warning that continued inaction could cost Nigeria billions in potential revenue and global relevance.
“Nigeria is ranked second globally in cryptocurrency usage. Our young men and women are thriving in the space, yet the funds are flowing out of the country because we have refused to regulate the sector.
“The Central Bank initially rejected crypto, but how do you ignore something that is already operating independently?”
Between July 2023 and June 2024, Nigeria reportedly received about $59 billion in crypto transactions—underscoring its status as a leader in digital finance adoption, driven largely by economic hardship and the need for inflation hedging.
Izunaso warned that without a proper regulatory framework, the country risks being sidelined in the global crypto economy, while its citizens continue to engage in unregulated digital trades.
“If we regulate it, the money comes home. If we don’t, the blockchain doesn’t need us—they will keep operating anyway,” he added.
The lawmaker, who represents Imo West Senatorial District, also issued a stern warning to Nigerians to steer clear of Ponzi schemes, describing them as fraudulent traps that “always end in tears.”
He revealed that the recently signed Investment and Securities Act 2025, which he sponsored and was assented to by President Bola Tinubu two months ago, has introduced sweeping reforms to Nigeria’s capital market.
The new law, he said, not only provides a legal foundation for digital assets like cryptocurrency but also prescribes severe penalties for financial crimes, including a 20-year jail term for Ponzi operators.
“That Act is now the omnibus legislation for capital markets and investments,” he explained.
“Thanks to this law, cryptocurrency has been legalised and is now under the regulatory purview of the Securities and Exchange Commission. Digital assets are now officially recognised instruments in Nigeria’s financial ecosystem.”
Izunaso described the law as a game-changer that supports at least four pillars of President Tinubu’s economic agenda, including the goal of building a $1 trillion economy.
“You cannot achieve a trillion-dollar economy without a strong capital market. That’s where the money will come from. Until now, Nigeria operated only with the money market led by the CBN. Even the CBN’s e-Naira initiative struggled because it lacked the capital market’s structural support.”
He further hinted that plans are underway to publicly unveil the full provisions of the new Act, noting that many Nigerians are still unaware of the far-reaching changes it introduces.
“This is not the SEC you used to know,” he said. “This law has revolutionised it, and it’s high time the public understands the new opportunities and protections now available to them.”
With crypto adoption soaring and the risks of unregulated markets becoming increasingly evident, the senator expressed a strong conviction that regulation is no longer optional—it’s inevitable.