Nigerian legislators move to formulate legal framework for cryptocurrencies, digital finance

*Olufemi Bamisile, Chairman of Nigeria’s House of Representatives’ Ad-Hoc Committee on the Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale Operations, says the objective of the proposal is to develop a framework that supports innovation while ensuring transparency, accountability, and security in digital finance ecosystem

Gbenga Kayode | ConsumerConnect

The Federal Government has reiterated its commitment to creating a clear and sustainable legal framework for digital assets in the financial space in Nigeria.

The emphasised that innovation should thrive without compromising financial integrity or security in the ecosystem.

The House of Representatives’ Ad-Hoc Committee on the Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale (PoS) Operations said this at a session with industry stakeholders in Abuja, FCT, recently.

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The Committee, chaired by Rep. Olufemi Bamisile, made the announcement early this week during a stakeholder session in Abuja with cryptocurrency operators, Financial Technology (FinTech) innovators, and regulatory officials.

The Federal lawmakers at the meeting, described the regulatory measure as a significant step in advancing Nigeria’s digital finance ecosystem.

Cryptocurrency has been described as a form of digital currency that uses cryptography and decentralised Blockchain Technology to enable secure, peer-to-peer transactions without a central authority like a bank.

It represents a key innovation within the broader field of digital finance, which uses technology to make the financial system more efficient and inclusive.

Speaking at the session, Hon. Bamisile, Chairman of the Committee, stated the overarching objective of the effort is to develop a framework that supports innovation while ensuring transparency, accountability, and security.

He also urged security agencies, including the Nigeria Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC), to build technical expertise in Blockchain Technology.

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He cautioned: “Not every young Nigerian with a laptop and a crypto wallet is a fraudster.”

Bamisile highlighted the importance of informed regulation that distinguishes between legitimate innovation and illegal activity.

Likewise, other members of the Ad-hoc Committee, including Hon. Kama Nkemkama and Hon. Akinosi, assured the industry stakeholders, that the House would produce a legislation that is inclusive, fair, and aligned with global best practices.

The session featured robust discussions with key industry players, including Buchi Okoro (Quidax), Moyo Shodipo (Busha), Olaniyi Atose (KoinKoin), Oluwasegun Kosemani (Botmecash), Ayotunde Alabi (Luno Nigeria), and Emeka Ezike (Bitbarter), among others. Representatives from major associations, such as the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), VASPA, BEAN, and Convexity also commended the House of Representatives Committee for hosting what they described as “an inclusive dialogue between regulators and operators.”

In her contribution to the discussions, Mawahin Adams, Co-founder of Nigeria Women Bitcoiners, advocated gender inclusion in digital asset policymaking, and proposed a National Digital-Asset Literacy and Inclusion Programme.

Adams suggested that a portion of regulatory fees be devoted to public awareness, particularly among women and youths.

Speaking at the session, SEC officials, including Abdulrasheed Mohammed, Head of FinTech Innovations, explained the operations of the Securities and Exchange Commission’s (SEC) regulatory sandbox, which allows supervised innovation within a controlled framework.

Committee Chairman

Bamisile again, emphasised balancing regulatory oversight with entrepreneurial growth.

The lawmaker said: “Rather than punish innovation, we should strengthen supervision and taxation through agencies like FIRS to ensure the sector contributes meaningfully to Nigeria’s digital economy.”

Besides, industry stakeholders also highlighted the importance of avoiding premature taxation of digital assets.

They recommended an incentive-based approach to encourage compliance. Others also advocated the development of homegrown regulatory technologies to monitor digital transactions while promoting local capacity and job creation.

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