Ayotunde Alabi, CEO, Luno Nigeria
Nigeria is a top market for crypto transactions. The adoption of the technology has been beyond revolutionary. However, government acceptance as a means of digital exchange stalled, especially during the last administration.
The country’s court case with Binance and how many peer-to-peer users have been treated in the past have also made wider adoption a challenge.
In Nigeria’s Investment and Securities Act (ISA) 2025, virtual and digital assets are now classified under the definition of securities. This means that cryptocurrencies are officially perceived as securities by the Nigerian Securities and Exchange Commission (SEC) — an acceptance better late than never.
With this development, local companies are now sure of a legal backing in carrying out their business. In a conversation with Techpoint Africa, Ayotunde Alabi, CEO of Luno Nigeria, shares his thoughts on how the ISA 2025 will spur the regulation of digital assets like stablecoins and how it can become a viable financial ecosystem.
How do you see the recent signing of the digital assets bill by Nigeria’s president shaping the overall crypto landscape and fostering innovation in the country?
The signing of the digital assets bill is a landmark development for Nigeria’s crypto industry, introducing long-awaited regulatory clarity that will provide structure to digital asset activities. The establishment of clear guidelines for issuance, trading, and custody is a significant step toward mainstream adoption and investor confidence. Regulatory certainty has always been a key driver of institutional participation, and this move positions Nigeria as a market that is serious about fostering responsible innovation. The bill not only strengthens oversight but also creates an environment where blockchain-based financial services and tokenised assets can develop within a defined legal framework.
What role do collaborations between crypto platforms, regulators, and other stakeholders play in driving the growth and maturity of Nigeria’s crypto industry?
A thriving crypto ecosystem depends on constructive engagement between industry participants and regulators. Crypto platforms operate at the forefront of innovation, regulators ensure market integrity, and broader stakeholders—including financial institutions and consumer advocacy groups—play a role in shaping a responsible industry. Open discussions, policy consultations, and regulatory test environments create space for innovation without compromising consumer protection. Industry-led best practices also help reinforce compliance, allowing businesses to operate transparently and securely. The maturity of Nigeria’s crypto industry will be defined not just by regulations but by the quality of collaboration between these key players.
Can you discuss the broader implications of the SEC’s efforts to list cNGN on exchanges for the Nigerian financial ecosystem and its impact on other digital assets?
The move to list cNGN on exchanges is a pivotal shift in Nigeria’s approach to digital assets, signalling greater regulatory alignment between traditional and digital finance. As a stablecoin with regulatory backing, cNGN holds the potential to bridge liquidity gaps, streamline payments, and introduce a structured entry point for broader digital asset adoption. A functioning stablecoin within the Nigerian financial system strengthens the case for more structured digital asset regulation, offering a model for how blockchain-based financial instruments can coexist with established financial frameworks. Its impact extends beyond digital currencies, as its adoption could set the stage for further developments in tokenised assets and blockchain-powered financial services.
How can Nigeria achieve a balance between regulatory oversight and innovation to attract global crypto investors while protecting local consumers?
Effective regulation should offer clarity without restricting progress. A structured licensing system, well-defined compliance requirements, and risk-sensitive policies can create an environment where businesses operate with confidence while consumers remain protected. Regulatory flexibility, particularly in areas like sandboxes and phased licensing, ensures that businesses have room to develop without excessive regulatory barriers. The ability to align local policies with global best practices also strengthens Nigeria’s appeal as a destination for crypto innovation and investment. A regulatory landscape that fosters legitimacy while maintaining openness to technological advancements will be critical in positioning the country as a competitive market in the digital assets space.
What strategies are being employed across the industry to enhance public understanding and trust in cryptocurrencies, and how can these efforts be scaled?
Crypto adoption is deeply tied to education and awareness, and industry players have taken significant steps in demystifying digital assets. Luno has remained committed to driving responsible adoption through educational initiatives, community engagement, and localised content that makes crypto more accessible. The Learn platform serves as a critical tool in breaking down complex financial concepts, equipping individuals with the knowledge needed to navigate the space confidently. Scaling these efforts requires broader industry collaboration, increased regulatory participation in awareness campaigns, and the integration of crypto literacy into mainstream financial education. The ability to engage new audiences with the right information will determine the pace and sustainability of adoption.
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Looking ahead, what regulatory trends do you foresee in Nigeria’s crypto space, and how can the industry proactively prepare to capitalise on these changes?
The direction of crypto regulation in Nigeria points toward greater compliance requirements, clearer operational structures, and enhanced oversight on consumer protection. Stricter KYC/AML measures, more defined licensing categories, and formalized taxation policies will shape how businesses operate in the sector. At the same time, there is growing recognition of the role digital assets can play in financial inclusion and economic growth, which could lead to more structured frameworks that encourage responsible participation. Industry players who invest in regulatory engagement, compliance infrastructure, and operational transparency will be best positioned to navigate this evolving landscape and remain competitive as policy developments take shape.
What does the SEC’s recognition of cryptocurrencies as securities practically mean for crypto companies operating in Nigeria, like Luno?
The SEC’s recognition of cryptocurrencies as securities brings digital assets under a more formal regulatory framework, subjecting crypto companies to similar standards as traditional financial market participants. For companies like Luno, this shift introduces the need for heightened compliance protocols around licensing, disclosures, and investor protection. Practically, it means more robust engagement with the SEC and a greater focus on ensuring that our products, services, and communication align with securities law. While this raises the bar for compliance, it also opens the door to deeper institutional trust, long-term market stability, and broader integration into the mainstream financial ecosystem.
How would you explain what this classification means to an average crypto user in Nigeria?
For the average user, the classification of crypto as securities means the space is becoming more regulated—similar to how stocks or bonds are governed. This means platforms like Luno will be expected to follow stricter rules designed to protect consumers, such as clearer disclosures, more secure operations, and tighter oversight from regulators. While it may not immediately change how users buy or sell crypto, it does signal a more structured environment that is safer and better supervised. Ultimately, this builds confidence and encourages broader participation from both individuals and institutions.
Do you see this move as a step forward in regulatory clarity, or does it introduce new challenges for innovation and compliance in the crypto space?
It is very much a step forward. Regulatory clarity has long been one of the missing ingredients in unlocking the full potential of crypto in Nigeria. While it does introduce additional compliance requirements — which may present short-term operational adjustments for crypto companies — it ultimately provides the foundation for sustainable innovation. A well-regulated space encourages responsible players, deters bad actors, and lays the groundwork for institutional adoption. That said, the challenge will lie in ensuring that the regulatory implementation is balanced and does not stifle the innovative edge that defines this industry.
How prepared is Luno for potential changes in licensing, reporting, or operations that may come with this new classification?
Luno has always operated with a proactive approach to compliance and regulatory engagement, both globally and within Nigeria. We have a strong foundation in navigating regulated environments. We’ve made strategic investments in our compliance infrastructure, risk management, and legal advisory capabilities, anticipating developments such as these. Our team is closely monitoring regulatory shifts and engaging with the SEC and other stakeholders to ensure readiness. We see these changes not as hurdles but as milestones in building a more mature, credible crypto ecosystem in Nigeria.
