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Nigeria’s Securities and Exchange Commission (SEC) has paused the issuance of new provisional licences under its Accelerated Regulatory Incubation Programme (ARIP), citing the need for more robust compliance assessment and deeper due diligence. This move introduces fresh uncertainty for digital asset startups seeking legal entry into the country’s emerging crypto ecosystem.
Speaking during a virtual stakeholder engagement hosted by the FinTech Association of Nigeria (FintechNGR), SEC Director General, Dr. Emomotimi Agama, acknowledged the delay and expressed regret to applicants awaiting regulatory feedback.
“We’ve observed critical compliance gaps from the first batch of ARIP licensees issued in August 2024. To protect investors and maintain market integrity, we’re instituting what I call Level 3 due diligence before issuing the next round of approvals,” said Agama.
Although the SEC had previously committed to fast-tracking licences for crypto startups, the current freeze has dashed expectations of a smooth rollout. No timeline has been provided for when the approval process will resume.
Since launching ARIP in June 2024, only two exchanges—Quidax and Busha—have received provisional licences. Numerous other startups remain in limbo, engaged in ongoing discussions with the SEC to clarify regulatory compliance requirements and adopt stronger consumer protection safeguards in a space often likened to a digital “Wild West.”
The SEC’s licensing delays are tied to the complexities of inter-agency coordination. Oversight of Nigeria’s crypto sector involves not only the SEC but also the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Office of the National Security Adviser (ONSA). These agencies operate with independent regulatory frameworks, limiting the SEC’s ability to expedite licensing unilaterally.
“There are aspects of regulatory oversight that fall outside our control. We are working collaboratively, but each agency has its own due process,” Agama explained.
While tighter scrutiny is necessary to counter risks such as money laundering, terrorist financing, and fraud detection, the prolonged silence from regulators risks stifling innovation in a sector poised for growth. Many crypto firms are now navigating a period of regulatory uncertainty, unable to proceed without formal approval.
Despite the setbacks, recent developments offer a glimmer of hope. The enactment of the Investment and Securities Act (2025), signed into law by President Bola Tinubu, officially classifies cryptocurrencies as securities, bringing them under the SEC’s regulatory purview. This legal recognition lays the groundwork for a more structured, compliance-driven crypto ecosystem.
Agama reaffirmed the SEC’s commitment to building a transparent and inclusive regulatory technology framework, noting that collaboration and regulatory intelligence will be key to shaping the future of Nigeria’s digital asset economy.
“We’re evolving. Our goal is not to stifle innovation but to create a safe, stable, and transparent environment for both innovators and investors,” he said.
As Nigeria pushes toward financial innovation through structured compliance monitoring and regulatory enforcement, the coming months will be pivotal in determining whether the country can position itself as a credible hub for RegTech solutions in the digital asset space.
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