Crypto Bill to Define Role of Central Bank and SEC in Nigeria

Nigeria which has a brewing crypto ecosystem is set to install regulations around the industry.

According to local media firm Punch Newspaper, the West African country is preparing to release a bill that recognizes the use of Bitcoin (BTC) and some other digital currencies. Also, this bill will analyze and affirm the roles of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) in the crypto industry. 

Babangida Ibrahim, the chairman of the House of Representatives Committee on Capital Markets and Institutions disclosed this information during an interview with the local media house.

Ibrahim acknowledged that when the amendment of the Investments and Securities Act, 2007 Bill is passed and finally signed, the Nigeria SEC will recognize BTC as well as other digital assets as capital for investment. 

The Ban on Nigeria’s Crypto Industry

Markedly, the country placed a heavy ban on cryptocurrencies and their holders in 2021 after a protest against police brutality in the nation.

The apex bank was asked to close all accounts which belong to crypto investors and crypto exchanges citing their operation in the country as illegal. However, Ibrahim Babangida who had at one time served as the nation’s president is now encouraging citizens to be on the lookout for global trends and developments in relation to the capital market.

“Like I said earlier during the second reading, we need an efficient and vibrant capital market in Nigeria. For us to do that, we have to be up to date global practices. In recent times, 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,” the ex-president explained.

Ibrahim clarified that this wasn’t a turn away from the ban, rather it is to bring more specification and understanding to the position of Nigeria’s apex bank and its regulator, the SEC.

“It is not about lifting of the ban, we are looking at the legality: what is legal and what is within the framework of our operations in Nigeria. The CBN is regulating financial markets and the Securities Exchange Commission regulates the capital market.”