Nigeria, recognized as Africa’s most populous nation, is witnessing significant transformations in its cryptocurrency landscape. This shift is underscored by a series of ambitious regulatory changes aimed at fostering a robust digital economy. Recently, the Nigerian Securities and Exchange Commission (SEC) announced an update to its minimum capital requirements for stakeholders within the digital asset space.
Nigerian SEC Raises Minimum Capital Requirement for Crypto Service Providers by $1.05 Million
As of January 16, 2026, the Nigerian SEC unveiled an updated circular outlining revised minimum capital (MC) stipulations for various entities operating within the financial ecosystem. This impacts core and non-core capital market operators, market infrastructure institutions, financial technology (FinTech) entities, virtual asset service providers (VASPs), and commodity market intermediaries.
The underlying motive behind this adjusted capital framework is to enhance operational resilience, ensure adequate capitalization, bolster market stability, and stimulate innovation across emerging sectors like the cryptocurrency marketplace.
Specifically for VASPs, the minimum capital for digital asset exchanges (DAX) and custodians has escalated from N500 million ($352,000) to N2 billion ($1.4 million). Furthermore, digital asset offering platforms (DAOP) facilitating the issuance and primary sales of digital assets must now maintain a capital threshold of N1 billion ($704,111).
Of particular interest is the SEC’s circular, which extends recognition to numerous VASPs previously navigating a regulatory gap. This includes ancillary virtual assets service providers (AVASPs), tasked with delivering supporting services such as blockchain analytics, who will now adhere to a minimum capital requirement of N300 million ($211,200).
Additionally, both digital assets intermediaries (DAI) and digital asset platform operators (DAPO) are subject to a base capital requirement of N500 million ($352,000). Moreover, for real-world assets tokenization and offering platforms (RATOP), a new minimum capital mandate of N1 billion ($704,111) has been established.
Entities affected by these changes are urged to comply with the new minimum capital requirements by June 30, 2027. Non-compliance could lead to serious repercussions, including the suspension or revocation of registration as deemed appropriate by the SEC.
Nigerian Government Amplifies Engagement with the Cryptocurrency Sector
In addition to the SEC’s recent updates, the Nigerian government appears to be intensifying its engagement with the cryptocurrency sector.
For instance, the recent Nigeria Tax Administration Act (2025) now mandates that all digital asset transactions must be associated with Tax Identification Numbers (TIN) and National Identification Numbers (NIN). This initiative effectively incorporates the emerging industry into the national tax framework, expanding the government’s revenue base.
Moreover, the SEC has entered into a partnership with the Nigerian Police Force (NPF) aimed at combatting fraudulent schemes, including Ponzi operations and other scams that threaten the integrity of the market.
