Nigeria, home to Africa’s biggest crypto fans, may soon pass a law legalizing digital currencies.
This is according to the Chairman of the House of Representatives Committee on Capital Markets and Institutions, Babangida Ibrahim, who gave a positive outlook for the Investments and Securities Act, 2007 (Amendment) Bill.
A local report indicates that the Bill, when passed and signed into law, will allow the Securities and Exchange Commission of Nigeria (SEC Nigeria) to recognize cryptocurrency and other digital funds as capital for investment.
Further to that, the proposed law is expected to define the regulatory roles of the Central Bank of Nigeria and the SEC regarding digital currency. According to the chairman, they want to reform their laws to make sure the capital markets are up to date.
Below are his words:
“We have to be up to date global practices. In recent time, there are a lot of changes within the capital market, especially with the introduction of digital currencies, commodity exchanges and so many other things that are essential, that need to be captured in the new Act.” – Chairman, House of Reps Committee on Capital Markets and Institutions, Nigeria
Mr. Ibrahim also revealed that bringing their systems up to date will be necessary to supervise the digital currencies much better since they are globally connected and many times away from the jurisdiction of local regulators.
“If you remember, when cryptocurrency was initially banned in Nigeria, the CBN discovered that most of these investors don’t even use local accounts. So, they are not within the jurisdiction of the CBN. Because they are not using local accounts, there is no way the CBN can check them.”
2021 saw the Central Bank of Nigeria issue a raft of suspensions and bans, including a crypto ban in February of that year.
In May 2022, a UN-backed report said that Nigeria’s restrictions on cryptocurrency transactions crippled foreign direct investment in the fintech industry and adversely impacted millions of young Nigerians earning a living from the sector.
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