The Nigerian government is planning several capital market reforms, such as allowing the use of digital currencies as an investment vehicle.
Babangida Ibrahim, House of Representatives Committee on Capital Markets Chairman and ex-President of Nigeria, told local media that the government was ready to recognize Bitcoin and other cryptocurrencies “as capital for investment.”
The possibility to legally invest digital assets will become available after an amendment to Nigeria’s Investments and Securities Act 2007 is passed. According to Ibrahim, the bill will ensure an “efficient and vibrant capital market” in the country thanks to new “global practices.”
In February 2021, the Nigerian government banned all cryptocurrency transactions and limited the use of digital assets in the country, focusing entirely on developing the eNaira (CBDC).
The former Nigerian president said that the planned bill didn’t envisage full legalization of crypto in the country, but only aimed to define a legal framework for using digital assets as an investment tool. The bill will define the roles of the main regulators — the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), which will monitor and determine the legality of certain operations with digital assets.
It’s worth noting that despite the ban on digital assets, the crypto market in Nigeria showed strong growth this year. Studies found that about 40% of African crypto users live in Nigeria, and ~22.3 million people in the country own digital currency.
