Manny Ita
Fintech operators in Nigeria have called on the Central Bank of Nigeria (CBN) to establish a clear definition of cryptocurrency-related activities permitted for licensed institutions. According to the CBN’s newly released Fintech Report, published on Monday, February 2, 2026, industry stakeholders maintain that persistent regulatory ambiguity is currently constraining innovation, investment, and institutional participation within the digital asset ecosystem. The report, which synthesized findings from nationwide surveys and workshops, indicates that while fintech firms recognize the potential for crypto assets to facilitate cheaper cross-border payments and expand financial inclusion, the lack of a formal framework remains a primary friction point.
Stakeholders involved in the regulatory review advocated for the transition toward a “risk-based, activity-focused regulatory framework” that distinguishes between legitimate financial use cases and high-risk activities. Specifically, the report noted that “key recommendations included clarifying permissible activities for licensed institutions, such as custody, tokenisation, and stablecoins.” Operators argued that the current absence of detailed guidance has discouraged responsible engagement from the traditional financial sector and hindered the development of domestic digital asset markets. Furthermore, participants cautioned against the criminalization of all crypto-related activity, noting that while the industry faces risks from illicit flows, many high-profile scams originate offshore despite the reputational impact falling on the Nigerian market.
The report highlights international regulatory models, such as Singapore’s digital asset licensing regime and the European Union’s Markets in Crypto-Assets (MiCA) framework, as potential blueprints for Nigeria. These jurisdictions are cited for balancing innovation with consumer protection by applying proportionate supervision rather than outright bans. Fintech representatives suggested that adopting similar principles would help Nigeria reset global perceptions and attract credible international players. There are also calls for improved coordination between the CBN and the Securities and Exchange Commission (SEC), as stakeholders warned that SEC efforts to regulate the market may be undermined without cohesive policies regarding how licensed financial institutions interact with crypto entities.
Despite the CBN releasing guidelines in December 2023 that allowed Virtual Asset Service Providers (VASPs) to open bank accounts, the fintech community contends that the practical impact of this policy has been limited by a lack of enforceable, granular rules. While the SEC granted Approval-in-Principle to two exchanges, Quidax and Busha, in August 2024 under its Accelerated Regulatory Incubation Program (ARIP), no further approvals have been issued in over a year. Industry players insist that a transparent, principles-based approach is necessary to provide the stability required for long-term institutional investment in Nigeria’s evolving financial landscape.
