REGULATING CRYPTOCURRENCIES IN NIGERIA: HOW SECURED ARE THE SECURITIES UNDER THE ISA 2025?

Abstract

Cryptocurrencies have introduced cutting-edge dynamics into the economy of nations. It becomes an existential threat to fiat currencies, raising concerns for state regulatory interventions. However, instead of confronting the crypto phenomenon headlong with apposite legislations, the Nigerian state adopts a conservative stance. This article examines the evolution of cryptocurrencies as securities and the challenges of their regulation in Nigeria. Adopting the doctrinal methodology of legal research, the article leverages primary and secondary sources of law on the subject matter to address the complex trajectory of digital currencies and its implications for Nigeria. The paper finds that the enactment of the ISA in March 2025 has, within the context and limit of the discourse, secured the securities and stabilized the capital market with high potential for greater control of the transactions by the state. The conclusion recommends some areas for amendment specifically suggesting the creation of arbitration mechanism through the ISA instrument in order to relieve the Investment and Securities Tribunal of potential overload that is characteristic of the traditional Nigerian court as well as engender speedy settlement of issues without cryptocurrencies losing the appeal of its peer-to-peer features.