Banwo & Ighodalo hosts forum on future of digital assets regulation in Nigeria

The enactment of the Investment and Securities Act 2025 (“ISA”) and the Nigeria Tax Administration Act 2025 (“NTAA”) introduced significant reforms to Nigeria’s financial and regulatory landscape, particularly in relation to digital and virtual assets. Whilst the ISA formally recognizes digital assets as securities and places them under the regulatory oversight of the Securities and Exchange Commission (SEC), the NTAA introduces far-reaching changes to Nigeria’s tax administration framework, including the taxation of digital assets.

On Thursday, May 21, 2026, Banwo & Ighodalo convened its Grey Matter Forum which was themed “Future of Digital & Virtual Assets Post-Investment and Securities Act 2025 and the Nigeria Tax Administration Act 2025”. This Forum brought together regulators, policymakers, legal practitioners, tax experts and industry operators to examine the implications of the new legislative regime for Nigeria’s digital asset ecosystem.

Ayotunde Owoigbe, (Partner – Banwo & Ighodalo), in delivering the welcome address, noted that Nigeria remains one of the world’s most active digital asset markets, and thus, it was imperative for transactions involving digital assets to operate within an efficient and transparent regulatory framework. According to Ayotunde, whilst the inclusion of digital assets within the SEC’s regulatory ambit under the ISA 2025 represented a major milestone for the digital assets ecossytem; it was important to x-ray the NTAA 2025 and its impact on the taxation, structuring and regulation of digital assets, because of the overarching necessity to protect market participants whilst preserving market integrity.

Speaking at the event, Mr. Joseph Tegbe, the Honourable Minister for Power who is the Chairman of the National Tax Policy Implementation Committee, stressed the importance of bringing the digital economy, including individuals and entities deriving wealth from digital assets, within a clear regulatory framework. He stated that although the legislative phase of the reforms had largely been completed, attention must now shift to implementation.

Representing the keynote speaker, Mr. Ajibola Olomola (Partner – KPMG), observed that Nigeria’s digital asset market had continued to expand despite the prohibition on crypto-related transactions by the Central Bank of Nigeria, which was eventually lifted in 2023. He disclosed that, based on the data which states that an estimated 22 million Nigerians are registered on at least one digital asset trading platform, “Nigeria is no longer approaching the digital asset era; we are already in it.”

Olomola, identified several unresolved issues within the ecosystem, including mainstream blockchain adoption and broader market growth challenges. He suggested that the establishment of a sovereign digital wallet would represent a significant step towards mainstreaming blockchain technology, as it would demonstrate government confidence in the sector and enhance public trust. He enjoined the public and private sectors to collaborate in developing policies that safeguard market integrity without undermining innovation.

The panel session, which was moderated by Seyi Bella (Partner – Banwo & Ighodalo), featured a cross-section of industry experts, including Abdulrasheed Dan-Abu (Head – Fintech and Innovation Department at the SEC); Kenneth Erikume (Head – Tax Reporting and Strategy at PwC); Obi Emetarom (CEO – Zone); Somto Nnajim (Country Manager – Yellow Card Nigeria); Kelechi Nkwocha (Lead Product Manager – Corporate Online Banking, Fidelity Bank); and Ayodele Adeyemi-Faboya (Partner – Banwo & Ighodalo).

During the discussion, Abdulrasheed Dan-Abu explained that a key reason for incorporating VASPs into the ISA 2025 framework was the absence of a dedicated regulatory regime prior to 2025; as the market previously lacked clear investor protection mechanisms and regulatory supervision for digital asset operators.

Speaking on regulatory gaps, Ayodele Adeyemi-Faboya described the ISA 2025 as a significant milestone but noted that the legislation did not comprehensively address all issues within the digital asset space. She suggested that, rather than pursuing entirely new legislation, the SEC could issue detailed regulations and operational guidelines to address grey areas not expressly covered by the Act.

On the operational impact of the ISA 2025, Somto Nnajim stated that although the legislation had formally recognised VASPs, implementation challenges remain; as uncertainty regarding the regulatory oversight of securities and payment-related products had created delays in onboarding products onto banking platforms due to the absence of standardized operational expectations.

Kelechi Nkwocha attributed some of the delays by banks to the need of exercising caution whilst conducting extensive due diligence to ensure compliance with anti-money laundering (AML) regulations.

With respect to the future of digital assets in Nigeria, Kenneth Erikume observed that tax laws governing digital assets would continue to evolve as the market expands; whilst Obi Emetarom added that increased market growth would inevitably lead to greater regulation of the ecosystem.

In his closing remarks, Akindeji Oyebode (Partner – Banwo & Ighodalo) thanked the speakers, panelists and participants for what he described as a robust and insightful conversation on the future of digital assets in Nigeria.