Offshore crypto firms serving Nigerians would need local registration, ₦2B capital for exchanges, and tiered stablecoin reserves under SEC proposal.
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Nigeria's Securities and Exchange Commission published a regulatory proposal on August 20 that would require crypto firms serving Nigerian users to register locally, hold minimum capital in naira, and follow strict custody and stablecoin reserve rules. The public comment period runs through September 3.
The scope covers any digital asset business reaching Nigerian residents, whether the company is based in Lagos, London, or elsewhere. Offshore exchanges and platforms targeting Nigerian investors through apps or websites would need SEC registration and, in most cases, incorporation inside the country. A registered office in Nigeria and a local chief executive or equivalent principal officer would also be required.
Capital requirements vary by license class. Digital Asset Exchanges and Custodians face the highest bar: minimum paid-up capital of ₦2 billion and a ₦30 million registration fee. Digital Asset Platforms, Digital Asset Offering Platforms, and Real World Asset Tokenization Offering Platforms need ₦500 million in capital with the same ₦30 million fee. Virtual Asset Service Providers land at ₦200 million and a ₦15 million registration fee.
Each license class also requires a fidelity insurance bond covering at least 25% of the minimum paid-up capital. For an exchange or custodian, that means an additional ₦500 million in bond coverage on top of the ₦2 billion floor.
Custodians must keep 80% of client digital assets in cold storage at all times, unless the SEC specifies a different percentage. The rule is designed to reduce exposure to hacks and unauthorized access.
Stablecoin issuers face tiered collateral requirements. Naira-backed and commodity-backed tokens need 100% backing. Foreign currency-backed tokens require 120%. Crypto-backed stablecoins, considered the riskiest category, must hold collateral between 150% and 200%, depending on the liquidity and price stability of the underlying assets.
Foreign stablecoin issuers that want to reach Nigerian users must appoint a local representative and comply with the SEC's prudential requirements, including maintaining reserves to support token redemption at all times.
If the rules pass as written, foreign providers serving Nigerian clients face a significant compliance build-out. Local incorporation, a resident executive, registered office space, capital reserves in the billions of naira for exchanges, cold storage mandates, and insurance bonds add up fast. Smaller offshore platforms may decide the Nigerian market is not worth the overhead. Larger ones with existing Africa strategies would likely push through, but they would need time and money to restructure.
Nigeria is one of the largest crypto markets on the continent by volume and user count. Peer-to-peer trading has historically been enormous in the country, partly because formal access to foreign currency has been restricted. The SEC's proposals would bring more of that activity under formal oversight.
Related: For a broader look at regulatory trends, see our crypto market analysis.
The comment window closes September 3. After that, the SEC will review feedback before any final rules take shape. No implementation date has been confirmed yet.
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