Nigeria's Senate on June 9 advanced a cryptocurrency regulation bill through second reading, moving Africa's largest economy closer to establishing its first comprehensive legal framework for digital assets. Deputy Senate President Barau Jibrin presided over the session and announced the bill's passage after a majority voice vote. The legislation introduces mandatory licensing for crypto exchanges, investor-protection rules, and stronger oversight to address money laundering and terrorism financing risks that lawmakers say have flourished in a regulatory vacuum despite Nigeria's position as one of the world's most active crypto markets.
Senate Assigns Bill to Capital Market Committee for Four-Week Review
The measure now heads to the Senate Committee on Capital Market, which has four weeks to conduct a public hearing and return with recommendations. 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 during the session. "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 Figure Criticizes Five-Year Delay and 2021 Banking Ban
Rume Ophi, co-convener of Decentralised Nigeria and lead for programs and communications at VASPA, criticized 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. He 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."
Ophi 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. He 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."
Ophi 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." Ophi argued the sector could aid President Tinubu's push toward a $1 trillion economy.
FAQ
What did Nigeria's Senate do on June 9 regarding cryptocurrency regulation?
Nigeria's Senate on June 9 passed a cryptocurrency regulation bill through second reading after a majority voice vote presided over by Deputy Senate President Barau Jibrin. The bill now moves to the Senate Committee on Capital Market for a four-week review period including a public hearing.
Why did industry figures criticize Nigeria's approach to crypto regulation?
Rume Ophi, co-convener of Decentralised Nigeria, said Nigeria "wasted five years" due to policy reversals including the February 2021 crypto banking ban under then-Central Bank Governor Godwin Emefiele. Ophi stated that Nigeria fell behind Kenya, South Africa and Ghana because authorities "love to fight what we don't understand" instead of studying regional progress.
What does the proposed Nigerian crypto bill include?
The legislation introduces mandatory licensing for crypto exchanges, investor-protection rules, and stronger oversight to curb money laundering and terrorism financing. Senate Chief Whip Tahir Monguno said the bill addresses the absence of a clear legal framework that has exposed investors to risks and enabled illicit activities.
