The Securities and Exchange Commission (SEC) has expressed optimism that Nigeria will soon be removed from the Financial Action Task Force (FATF) grey list following the inclusion of digital asset regulation in the recently signed Investments and Securities Act (ISA 2025).
Nigeria was added to the FATF grey list on February 24, 2023, due to identified gaps in the country’s anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.
In a statement on Wednesday, the Director-General of SEC, Dr. Emomotimi Agama, said that the new law, which incorporates digital asset oversight, presents Nigeria with an opportunity to address FATF’s concerns and rebuild global trust in its financial systems.
He explained that the regulation aims to curb illicit activities in the digital finance space while fostering innovation and confidence in blockchain technology.
“The AML-CFT concerns led to our grey list status. With this law now in place, we have a pathway to exit that list, which is crucial for international stakeholders,” Agama said.
He stressed that the inclusion of cryptocurrency regulation does not weaken the Naira, but rather enhances safeguards for the national economy. Agama added that the SEC will offer clear guidance to digital asset operators and ensure their compliance with national interests.
“SEC now has the mandate to crack down on non-compliant entities. We encourage operators to seek regulatory approval and guidance to remain on the right side of the law,” he said.
The Director-General noted that the Commission is collaborating with the Central Bank of Nigeria, the Economic and Financial Crimes Commission, the Nigeria Financial Intelligence Unit, and the Office of the National Security Adviser to implement the regulation effectively.
Agama also revealed that SEC is adopting a phased approach to licensing operators through its regulatory and accelerated incubation programmes. These frameworks are designed to evaluate potential risks and ensure investor safety.
He announced that the next batch of approvals will be released in the coming quarter, following a review of progress in the last two cohorts.
To further strengthen oversight, Agama said SEC is introducing risk management protocols as legal instruments to guide market operations and mitigate future risks.
“These steps will boost investor confidence, enhance protection mechanisms, and improve KYC practices, helping to distinguish legitimate investors from bad actors,” he added.
(NAN)