• Nigerian SEC plans to promote the adoption of digital assets in the country
  • It plans to develop up to 50 digital assets by 2025
  • Although cryptocurrencies are a form of digital asset, the SEC will not promote them as investment vehicles for now.

Lamido Yugda, director general of the Nigerian Securities and Exchange Commission, has revealed that the Commission will only consider “sensitive digital assets” as it plans to boost the adoption of digital assets in the country.

Yuguda told reporters in Lagos on Friday, November 25, 2022, that the Commission’s reason for not considering cryptocurrencies is that cryptocurrency exchanges do not yet have access to the necessary banking platform to power their operations in Nigeria.

For Bloomberg, The CEO said: “We are looking for digital assets that really protect investors.”

But Nigerians love crypto

According to Chainalysis’ Cryptocurrency Adoption Index 2021, Nigeria ranked 6th in global cryptocurrency adoption out of 154 countries.

Although the country did not make the top 10 in the 2023 rankings, data from Merchant Machine has shown that Nigeria will lead global cryptocurrency adoption by 2030.

While Nigerians seem to be interested in cryptocurrency, it still doesn’t make it safe for investment.

From high volatility to lack of proper regulations, cryptocurrencies are largely unsafe investment vehicles. They also have higher risk levels than traditional assets.

Yuguda reiterated this by saying: “The commission is in the business of protecting investors, not in the business of speculation.”

However, he said that the Commission could promote cryptocurrencies as a digital asset if the market is subjected to proper regulations.

The SEC has made significant efforts to regulate the crypto market, especially with the release of the crypto guideline earlier this year.

Subscribe to Techpoint Digest to get a daily 5-minute digest of African and global tech happenings delivered straight to your email inbox every day of the week!