• 21 Jun, 2025
• Faith Kegh
• No comment

Time to Unblock Innovation in Nigeria’s Crypto Sector.

In February 2024, the Securities and Exchange Commission (SEC) directed telecom compani

es in Nigeria to block access to cryptocurrency platforms — including those already operating under the Accelerated Regulatory Incubation Programme (ARIP). Over a year later, the restrictions remain, dampening growth in Nigeria’s fintech sector and weakening the country’s once-prominent role in global digital asset adoption.

Despite establishing the legal and regulatory frameworks for digital assets — including the Securities and Investment Act of 2025 and the ARIP — the ongoing access block contradicts these efforts. With multiple agencies including the SEC, Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC), National Security Adviser (NSA), and Nigeria Financial Intelligence Unit (NFIU) involved in oversight, the tools for effective regulation exist. What’s missing is coordination and consistent implementation.

    A Missed Opportunity

Before restrictions, Nigeria was ranked second globally in crypto adoption, with over \$59 billion in transaction volume between July 2023 and June 2024. Crypto use in the country was driven by real needs — rising inflation, limited access to traditional banking, and high youth unemployment. Since the telecom ban, Nigeria has lost approximately ₦20 trillion in transaction volume. VPN use has surged over 1,200%, and users now rely on foreign platforms, many outside the reach of Nigerian regulation.

Meanwhile, other African countries are capitalizing on Nigeria’s slowdown. Kenya’s crypto users have grown to over 11 million, Ghana has a 17.3% adoption rate among adults, and Rwanda is actively incentivizing digital finance innovation.

    Conflicting Policies

The continued block undermines ARIP, which was designed to formalize the digital finance sector. It also contradicts government messaging about responsible innovation. Firms that joined ARIP and complied with requirements — including KYC, compliance infrastructure, and documentation — remain unable to operate effectively due to the telecom restrictions and delays in licensing.

This inconsistency damages Nigeria’s credibility as a predictable and law-abiding environment for investment. It sends a message that compliance does not guarantee access — a disincentive to both local entrepreneurs and global investors.

    Access Is Inclusion

Most Nigerians rely on mobile data to access the internet. Blocking access to regulated platforms excludes the very people ARIP is meant to support — especially the unbanked population for whom crypto offers alternative financial tools. Those without VPNs or multiple internet options are cut off entirely.

    Regulation Needs Visibility

The SEC cannot regulate what it cannot monitor. Blocking access forces users to offshore and often unregulated apps. Open access to ARIP-compliant platforms allows better oversight of transactions, user trends, and potential risks.

    Rebuilding Confidence and Capturing Value

Removing the block would show unity among Nigerian regulators and signal to investors that the country is serious about safe digital finance. Countries like Kenya, Ghana, and offshore hubs like Seychelles are already drawing in the talent and capital Nigeria is losing.

There is also a clear economic incentive. With an estimated ₦20 trillion in annual crypto trade, Nigeria currently collects no tax revenue from it. A small transaction fee — even 0.5% — could yield ₦100 to ₦450 billion annually. That’s significant revenue without raising taxes on citizens.

    A Matter of Security

Relying on VPNs and unregulated apps introduces cybersecurity and data privacy risks. Instead, users should be directed to licensed, accountable domestic platforms with proper safeguards.

   The Way Forward

Nigeria has the rules, the framework, and innovators willing to comply. What’s needed now is coordinated action — beginning with lifting the telecom ban on compliant platforms. This isn’t about deregulation; it’s about enabling regulation through access.

Without broader access, even the few licensed firms cannot create a sustainable ecosystem. Others that are ready and compliant should also be cleared to operate. This is essential for ARIP to fulfill its goal of fostering safe, inclusive, and scalable digital innovation.

Unblocking access to ARIP-approved platforms would restore investor confidence, promote financial inclusion, and keep Nigeria competitive in the evolving global digital economy. The world is watching. Now is the time for Nigeria to lead again.

Faith Kegh

Content & Editorial Manager – Leads the creation, review, and publication of high-quality news and media content. She ensures that all editorial work reflects the organization’s standards of accuracy, professionalism, and relevance, while also engaging and informing the audience.

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