Legislative Progress and Next Steps
Nigeria’s Senate on June 9 passed a cryptocurrency regulation bill through a second reading, moving Africa’s largest economy closer to establishing its first full legal framework for digital assets after years of high adoption and policy whiplash. The proposed legislation introduces mandatory licensing for crypto exchanges, investor‑protection rules and stronger oversight to curb money laundering and terrorism financing.
Deputy Senate President Barau Jibrin, who presided over the session, announced the bill’s advancement after a majority voice vote. The measure now heads to the Senate Committee on Capital Market, which has four weeks to conduct a public hearing and return with recommendations.
Nigeria remains one of the world’s most active crypto markets, with millions using bitcoin and other digital assets for savings, remittances and commerce. But lawmakers said the sector’s rapid growth has unfolded in a regulatory vacuum, leaving users exposed to fraud, cybercrime and market manipulation.
Senate Chief Whip Tahir Monguno, who sponsored the bill, said Nigeria’s delay has allowed illicit activity to flourish.
“The absence of a clear legal framework has exposed investors to risks and enabled illicit activities to thrive,” Monguno said, adding that the bill “speaks directly to the realities of our time.”
Several lawmakers echoed the need for transparency.
“If you do not provide a regulatory framework for this sector, it will go under the table in a black market environment,” said Sen. Shuaib Salisu of Ogun Central. “Once there is no transparency and activities become opaque, it allows criminal activity to take place.”
Sen. Oyelola Ashiru questioned why Nigeria lagged behind Kenya, South Africa and Ghana, while Sen. Adetokunbo Abiru urged harmonization with existing financial laws to avoid regulatory overlap.
Industry Reaction: ‘We Wasted Five Years’
Rume Ophi, co‑convener of Decentralised Nigeria and lead for programs and communications at VASPA, delivered one of the strongest reactions yet, criticizing Nigeria’s history of policy reversals and missed opportunities.
“Nigeria is always learning from its own experience, which is very sad. Countries like Kenya, South Africa and Ghana are way ahead of us because we love to fight what we don’t understand.”
Ophi said Nigeria’s position as “the giant of Africa” has not translated into leadership in digital finance.
“As the giant of Africa, you lead by example, but right now, we can’t even lead ourselves in the virtual asset space. We wasted five years, just for the fun of it.”
He recalled the February 2021 crypto banking ban, enforced under then–Central Bank of Nigeria Governor Godwin Emefiele, who publicly dismissed bitcoin as a tool for criminals.
“Rather than learn from the reason why Nigeria became the world’s second‑largest user, they fought the interests of young Nigerians.”
Ophi said the Senate’s surprise at Nigeria’s lagging position reflects a deeper failure to study regional progress.
“We are behind because we don’t study what others are doing to better their economy.”
Still, he acknowledged improvements under President Bola Tinubu, urging lawmakers to follow through on campaign promises and enact legislation that attracts investors and builders.
“The political will to make a law that attracts investors, founders and enthusiasts cannot be overemphasized. The president made a promise during his last election. That should be completed and sealed going forward.”
