On April 1, cNGN welcomed the signing of the Investment and Securities Act 2025 by President Tinubu, calling it a key move for Nigeria’s financial market and digital assets, as it officially recognises digital assets like cNGN as securities.

“President Tinubu has signed the Investment & Securities Act 2025 into law, bringing stronger investor protection, market transparency, and for cNGN, a major win!” the statement read. “For the first time, digital assets are officially recognised as securities, giving cNGN more legitimacy, clearer regulations, and stronger institutional adoption. This could be the turning point for blockchain finance in Nigeria.”

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A milestone for Nigeria’s capital market

The Investment and Securities Act 2025 replaces the outdated 2007 legislation, ushering in crucial regulatory reforms to enhance investor protection, market efficiency, and financial innovation. It aligns the local capital market with international best practices by expanding the Securities and Exchange Commission (SEC) regulatory powers to meet global standards set by the International Organization of Securities Commissions (IOSCO).

Some key provisions of the new law include:

  • Classification of exchanges into Composite and Non-composite categories.
  • Legal backing for financial market infrastructure, including clearing houses and central counterparties.
  • Recognition of virtual assets and investment contracts as securities, bringing digital asset operators under SEC oversight.
  • A structured framework for commodity markets and warehouse receipt systems.
  • More vigorous enforcement against Ponzi schemes to protect investors from fraudulent schemes.
  • Expanded fundraising opportunities for sub-national governments through the capital market.

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Implications for cNGN and blockchain finance

The recognition of digital assets as securities is a game-changer for blockchain finance in Nigeria. With regulatory clarity, platforms like cNGN have gained legitimacy in fostering institutional adoption and increasing investor confidence.

The law also provides a structured framework for integrating digital assets into Nigeria’s financial system, which will enable smoother cross-border settlements and digital trade.

With the new development, Nigeria is positioning itself as a forward-thinking player in the global capital market. As a result, cNGN stands to play a pivotal role in shaping the future of digital finance in the country as regulator oversight strengthens and investor confidence grows.