Nigeria may soon exit the Financial Action Task Force (FATF) grey list, Emomotimi Agama, director-general, Securities and Exchange Commission (SEC), has said.
Emomotimi Agama, DG, SEC
This is with the inclusion of digital assets regulation in the recently signed Investments and Securities Act (ISA) 2025.
Speaking in Abuja, Agama noted that the inclusion of digital assets in ISA 2025 provides the country with a strong platform to exit the grey list, as the new law aims to curb fraudulent activities in the digital space while fostering trust and innovation in blockchain technologies.
President Bola Ahmed Tinubu recently signed the ISA 2025 into law.
Nigeria was placed on the FATF grey list (indicating increased monitoring) on February 24, 2023, due to deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CFT) regime.
According to Agama, “It may interest you to know that the AML/CFT issue is what brought about our inclusion in the grey list. The inclusion of this law today provides us an avenue to exit that grey list, and that is very critical to the international community. We are telling the world that Nigeria is open for business and committed to protecting all legitimate business operations within the country.”
He emphasized that trading in cryptocurrencies does not equate to a weaker naira, adding that the Commission will provide regulatory guidance to ensure activities in the space align with national interest.
“The SEC now has the power to clamp down on unregulated entities. We encourage everyone in this space to come under regulation, seek clearance, and obtain guidance.
“We are ready to provide the needed support to ensure national economic interests are protected. Clarity in the law will give market participants confidence and security,” he said.
Agama explained that the essence of regulation is to create protective boundaries around institutions, products, and individuals to prevent illegal practices.
He also highlighted collaboration with key agencies including the Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC), Nigeria Financial Intelligence Unit (NFIU), and the Office of the National Security Adviser.
“We are working collectively to ensure that this sector does not become inimical to Nigeria’s existence. Proper guidance is essential, especially because every investment – digital or traditional – carries risks. Managing that risk is our priority,” he said.
He further disclosed that the SEC is currently implementing moderated regulation, noting that it is not feasible to issue licenses to all applicants at once.
“We have two programmes: the Regulatory Incubation Programme and the Accelerated Incubation Programme. These are tools to evaluate the risks posed by institutions to the Nigerian economy and its citizens. We will release the next cohort in the coming quarter, after reviewing the progress of the previous cohorts,” he said.
To address regulatory challenges, Agama said the Commission is introducing risk management as a legal instrument to guide capital market operators and security issuers in mitigating future risks.
“This move will enhance investor confidence and protection. We have also strengthened Know Your Customer (KYC) processes through this risk management framework to distinguish genuine investors from those with malicious intent,” he added.