More young professionals are now demanding salaries in stablecoins, and local businesses are increasingly turning to platforms like Binance Pay for cross-border transactions.
With over 60 per cent of West Africa’s population under the age of 25, mobile-first cryptocurrency solutions are thriving.
“Nigeria now ranks as the third-largest crypto adopter globally, after India and Vietnam,” said the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, during the West Africa Compliance Summit organised by GIABA in Praia, Cape Verde.
But while digital assets are gaining ground, Dr. Agama warned that the rapid expansion has drawn the attention of fraudsters and criminal networks. GIABA, the regional anti-money laundering watchdog, reported $2.1 billion in suspicious crypto-linked transactions across West Africa in 2024 alone.
He said fraud schemes such as DeFi “rug pulls,” artificial price crashes, and unlicensed crypto exchanges disappearing with investors’ funds have become frequent. “These high-profile scams have wiped out millions in investor funds,” he said, adding that terror groups are also exploiting privacy coins to escape detection.
According to Dr. Agama, the region must not view regulation as an option but as a necessity. “We must strengthen oversight to ensure that emerging technologies like cryptocurrencies operate within a secure framework that protects market integrity and consumers,” he said.
He explained that Nigeria’s regulatory journey has been turbulent but instructive. In 2021, the Central Bank of Nigeria banned banks from servicing crypto-related firms, driving activity underground. By 2022, the SEC classified crypto assets as securities, but enforcement gaps remained.
The situation changed significantly with the enactment of the Investment and Securities Act (ISA) 2025. Under this law, cryptocurrencies, stablecoins, NFTs, and other digital assets are officially recognised. Specifically, Section 355(4) and Part I of the Second Schedule define investments to include virtual and digital assets as well as distributed ledger technology (DLT)-based products.
“All exchanges, wallets, and DeFi platforms must now be licensed by the SEC,” Dr. Agama said.
He called on other West African regulators to learn from Nigeria’s experience and stressed the need for regional coordination to combat crypto-related crimes. “A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he urged.
He disclosed that the Nigerian government is preparing to deploy Artificial Intelligence tools for blockchain analytics to track illicit transactions. He also noted that the SEC has created a dedicated Fintech and Innovation Department, which actively engages with the crypto industry to ensure regulations are practical and up-to-date.
Dr. Agama said the Commission is also ramping up its efforts to tackle fraudulent investment schemes. He referenced the recent collapse of CBEX, a Ponzi scheme that defrauded thousands of investors across Nigeria.
“In response, we’ve launched a Ponzi Awareness Campaign in Abuja and Lagos and plan to expand it to other states. The goal is to help Nigerians distinguish between genuine investment opportunities and scams,” he said.
Calling for regional collaboration, Dr. Agama concluded that financial crimes know no borders. “We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close the gaps exploited by bad actors,” he said.
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