The Securities and Exchange Commission (SEC) has said Nigeria is well-positioned to exit the Financial Action Task Force (FATF) grey list following the enactment of the Investments and Securities Act (ISA) 2025.
Dr. Emomotimi Agama, Director-General of the SEC, stated this in a press release on Wednesday, noting that the law addresses critical gaps flagged by the global financial watchdog, especially around digital asset regulation, anti-money laundering (AML), and counter-terrorism financing (CFT). Nigeria was added to the FATF grey list on February 24, 2023, due to concerns about its AML/CFT framework. According to Agama, the new legislation introduces clear provisions for digital asset oversight—an area of increasing concern for global regulators.
“The AML/CFT issue was central to our grey listing. With the ISA 2025, we now have the tools to reverse that status,” Agama said. “This shows the international community we are serious about transparency, accountability, and safeguarding investments.”
He stressed that regulating digital assets does not weaken the naira but provides guardrails for fair, safe, and innovative use of blockchain technologies in Nigeria. “We’re not against crypto or digital assets. We want them to operate in a way that aligns with national interests,” he added.
To enforce the new framework, Agama said the SEC is coordinating with the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), the Nigeria Financial Intelligence Unit (NFIU), and the Office of the National Security Adviser (ONSA).
The SEC now has the authority to clamp down on unregistered entities operating in the digital space. “We encourage actors to come under regulation and seek guidance. Regulation protects them and their investors,” he noted.
The commission is also adopting a phased licensing approach to manage the influx of applications. Two programmes—the Regulatory Incubation Programme and the Accelerated Incubation Programme—have been launched to assess digital finance operators based on their risk to the economy and investors.
“We’ll release the next cohort in the coming quarter, following a thorough review of the current batch,” Agama said.
He also revealed that the SEC is integrating risk management as a legal requirement for capital market operators and securities issuers. This, he said, would bolster investor protection, enhance Know Your Customer (KYC) protocols, and filter out fraudulent actors.
“With these steps, we are building a safer, more transparent capital market—one that inspires investor confidence and supports Nigeria’s ambition to be a global investment hub,” Agama concluded.
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