The Securities and Exchange Commission (SEC) has unveiled a sweeping regulatory overhaul for Nigeria's digital asset industry, proposing a N30 million registration fee for crypto exchanges and custodians, a N2 billion minimum capital requirement for major operators, and a N10 million annual investment cap for retail investors. The draft framework, titled “Digital and Virtual Asset Operations, Custody and Markets,” was released on August 20, 2026, and is currently open for public comment.
New Fees and Capital Requirements for Crypto Operators
Under the proposal, digital asset exchanges (DAXs), digital asset custodians (DACs), digital asset platform operators (DAPOs), digital asset offering platforms (DAOPs), and real-world asset tokenisation platforms (RATOPs) would each pay a N30 million registration fee. The SEC also wants operators to meet significantly higher minimum capital requirements before entering or continuing operations in the Nigerian market.
Digital asset exchanges and custodians would each be required to maintain a minimum capital of N2 billion. Digital asset platform operators, digital asset offering platforms, and real-world asset tokenisation platforms would require minimum capital of N500 million each. Virtual asset service providers (VASPs) would face a minimum capital requirement of N200 million, alongside a N100,000 processing fee and N300,000 application fee.
The SEC also proposed that regulated entities maintain a fidelity insurance bond covering at least 25 per cent of their minimum paid-up capital. For companies seeking entry through the Accelerated Regulatory Incubation Programme (ARIP), the commission proposed a N200,000 initial assessment fee and a N2 million application fee.
Supervisory Charges and Retail Investment Caps
The proposed framework would also impose ongoing supervisory charges based on the turnover of regulated entities. A digital asset exchange operating under ARIP would pay 0.015 per cent of adjusted turnover, while other entities under the programme would pay 0.0075 per cent. Following full registration, the supervisory fee would increase to 0.025 per cent of adjusted turnover for digital asset exchanges and 0.015 per cent for other regulated entities. The fees would be payable quarterly or at intervals determined by the commission.
In another major proposal, the SEC wants to place limits on how much retail investors can put into digital asset offerings. A retail investor would not be allowed to invest more than N1 million per issuer and N10 million in total across digital asset offerings within 12 months, unless the commission prescribes otherwise.
Where an investor wants to commit more than N1 million or five per cent of their net worth, whichever is higher, the digital asset offering platform would have additional obligations. The platform would have to provide a prominent risk warning, obtain the investor’s express consent, and confirm that the investor understands the investment and its potential risks. It would also need to assess whether the investment is suitable based on the investor’s knowledge, experience, financial circumstances, and ability to absorb potential losses.
Foreign Firms and Stablecoin Issuers Face New Conditions
The SEC further proposed that no person should conduct a digital or virtual asset business in Nigeria, or target Nigerian residents, without obtaining the required registration, approval, or authorisation from the commission. Operators would also be expected to comply with Nigeria’s corporate governance requirements.
Foreign stablecoin issuers seeking recognition in Nigeria would have to appoint or maintain a local representative, demonstrate authorisation in an acceptable foreign jurisdiction, and meet Nigeria-specific reserve, liquidity, and redemption requirements. The SEC said the proposed framework is designed to create a more structured digital asset market while strengthening investor protection and regulatory supervision.
If adopted, the rules could significantly reshape Nigeria’s crypto industry, raising the financial and compliance barriers for operators while giving investors clearer safeguards in a market that has grown rapidly in recent years. The Nigeria Revenue Service (NRS) has also ordered cryptocurrency exchanges and other Virtual Asset Service Providers (VASPs) to collect a valid Tax Identification Number from customers as a condition for opening accounts on their platforms, under the Guidelines on the Taxation of Virtual Assets published on August 3, 2026.
