NIGERIA Law and Practice Contributed by: Omoruyi Edoigiawerie, Adebomi Adekeye and Habeeb Eyinade, EandC Legal
BNUG (Blockchain Nigeria User Group) BNUG leads the technical and developer-centric eco- system. Its role is focused on capacity building and long-term infrastructure, such as the Agenda 2036 initiative, which promotes sovereign blockchain adop- tion within Nigeria’s public sector. In the current climate, the SEC and CBN increasingly view membership in good standing as a badge of credibility. Membership provides firms with a consul- tative seat at the table when the government reviews In Nigeria, crypto-assets are recognised as a distinct form of intangible personal property. The ISA 2025 for- mally classifies digital assets as securities, providing the statutory basis for ownership claims and bringing them under the regulatory oversight of the SEC. Under the Nigeria Tax Administration Act (NTAA) 2025, digital assets are defined as “chargeable assets”. This treatment confirms that the State views these assets as property capable of legal transfer and capital gains. Enforcement of Property Rights Enforcement mirrors the process for “choses in action” but utilises modern evidentiary tools. high-impact policies. 1.2 Crypto-Assets 1.2.1 Property Considerations • Since the ISA 2025 mandates that only licensed VASPs can hold custodial responsibility, enforce- ment typically involves seeking court orders against these regulated intermediaries to freeze or recover assets. • Following the Evidence (Amendment) Act 2023, blockchain ledger entries are admissible as pri- mary electronic evidence. Claimants can establish ownership by demonstrating the “integrity of the system” under Section 84B, a standard naturally met by the immutability of decentralised ledgers. Determination of Ownership Transfer Ownership transfer is determined by the intersection of cryptographic control and regulatory recordation.
To ensure that a smart contract is recognised as a binding obligation, it must satisfy the traditional pillars of Nigerian contract law: offer, acceptance, considera- tion and intention. In a blockchain context, these are evidenced through “on-chain” actions, such as the calling of a public function or the automated transfer of digital assets. Top-tier practice in Nigeria has moved towards the master agreement model. The authors advise cli- ents to pair their smart contract code with a natural language wrapper. This ensures that while the code handles the execution layer (automated payments or collateral release) the written agreement governs the legal layer, providing a clear framework for dispute resolution, force majeure and liability that the Nigerian courts can easily interpret. 1.1.5 Industry and Trade Bodies In Nigeria, the blockchain industry is co-ordinated through structured associations that act as a vital bridge between innovation-first firms and compliance- first regulators. SiBAN (Stakeholders in Blockchain Technology Association of Nigeria) SiBAN is the primary self-regulatory organisation (SRO) for the digital assets space. Its role has evolved from advocacy to institutionalised governance. Fol- lowing its 2025 leadership realignment, it has focused on enforcing a voluntary VASP Code of Conduct. This framework serves as a pre-compliance filter, preparing local operators for the rigorous licensing and AML/ CFT standards mandated by the SEC under the ISA 2025. FintechNGR (Fintech Association of Nigeria) While broader than blockchain, FintechNGR is the most influential partner for the CBN. It is currently being positioned as a formalised SRO to standard- ise cross-sector protocols. For blockchain firms, Fin- techNGR provides the platform for integrating decen- tralised finance (DeFi) with the traditional banking core, ensuring that on-ramp and off-ramp gateways meet institutional security standards.
434 CHAMBERS.COM
Powered by FlippingBook