Navigating the investment and securities Act 2025: A comparative legal framework for cryptocurrency regulation in Nigeria

Abstract

The growing popularity of cryptocurrencies across the globe has generated concerns. The phenomenon has challenged existing financial regulatory frameworks prompting countries to consider partial or absolute recognition of the medium as tradable securities, for exchange or settlement of accounts, after the manner of fiat currency, but parallel to it. Fundamentally, the aim of this paper is to ascertain whether cryptocurrencies may lawfully be used, and to what extent in Nigeria. The study engages the doctrinal (conceptual) methodology for legal research which is basically library based, leveraging primary and secondary source materials for the rigorous analysis. With particular focus on the Investment and Securities Act 2025 the paper makes a structured analysis and review of relevant regulations on securities and currencies in Nigeria to determine: i). whether all manifestations of cryptocurrencies were within the contemplation of statute, and ii). the effect of the new law on the legality or otherwise of virtual assets in Nigeria. The result reveals at first, that the debate on legal assessment of cryptocurrencies persists and issues are still not fully resolved; second, the status and nature of digital currency presents it as a specie of electronic promissory note capable of creating legal obligations and values enforceable by judicial process if properly harnessed. In concluding, the paper asserts that cryptocurrency could be traded on the stock market and licensed bureau de change platforms like other foreign currencies with the right statutory atmosphere and such trades would enrich Nigeria’s tax economy as it is the case with Canada.