Nigeria, Africa’s most populous country, is paying great attention to the rapid development of its cryptocurrency sector, marked by a series of new regulations. In the latest development, the Nigerian Securities and Exchange Commission (SEC) has shared a revised minimum capital for all regulated market entities, including digital asset market operators.
Nigerian regulator increases minimum capital for crypto exchanges by $1.05 million
On January 16, 2026, the Nigerian SEC issued a circular communicating changes to the minimum capital (MC) requirements for major financial entities, namely: core and non-core capital market operators, market infrastructure institutions, capital markets consultants, financial technology (FinTech) operators, virtual asset service providers (VASP) and commodity market intermediaries.
The securities regulator explained that the revised MC framework aims to strengthen operational resilience, align capital adequacy, promote market stability and support innovation in nascent market segments such as the cryptocurrency sector.
Regarding VASPs, the minimum capital for digital asset exchanges (DAX) and digital asset custodians has been increased from 500 million naira ($352,000) to 2 billion naira ($1.4 million). At the same time, all digital asset offering platforms (DAOPs) responsible for the primary issuance and sale of digital assets to the public are expected to reach a capital threshold of 1 billion Naira ($704,111).
Notably, the new circular from the Nigerian SEC extends recognition to several VASPs that were operating in a regulatory vacuum. These include Ancillary Virtual Asset Service Providers (AVASP) which provide ancillary services such as blockchain analysis tools etc., which are now mandated to operate with a minimum capital of 300 million naira ($211,200).
Under the new regime, the base capital requirements for digital asset intermediaries (DAI) and digital asset platform operators (DAPO) have also been set at 500 million naira ($352,000). Among the new additions, Real World Asset Tokenization and Offering Platforms (RATOP) now has a minimum capital requirement of 1 billion naira ($704,111).
According to the SEC, all affected entities are advised to comply with the new regime no later than June 30, 2027, as failure to comply will result in sanctions, including suspension or withdrawal of registration, as determined by the Commission.
Nigerian Government Increases Focus on Crypto Industry
Apart from the recent SEC circular, other developments indicate that the Nigerian government is increasing its participation in the cryptocurrency market.
Notably, the new Nigeria Tax Administration Act (2025) now requires all activities related to digital assets to be linked to Taxpayer Identification Numbers (TIN) and National Identification Numbers (NIN), thereby capturing the nascent industry as a new tax base.
These recent measures follow a recent partnership between the SEC and the Nigerian Police Force (NPF) focused on cracking down on operators of Ponzi schemes and other similar scams.
Featured image from Tech Cabal, chart from Tradingview
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