NIGERIA Law and Practice Contributed by: Omoruyi Edoigiawerie, Adebomi Adekeye and Habeeb Eyinade, EandC Legal
tional investors, the primary operational challenge is no longer “if” they are taxed, but ensuring precise real-time naira valuation of every trade to mitigate the impact of the new progressive tax brackets. 1.2.5 Insolvency Nigeria does not have a standalone blockchain insolvency law. Instead, proceedings follow a hybrid application of the Companies and Allied Matters Act (CAMA 2020) (procedural) and ISA 2025 (regulatory). Regulatory Resolution SEC oversight Because digital assets are classified as securities under the ISA 2025, the SEC has the mandate to intervene in a VASP’s winding-up to protect market integrity and ensure a controlled exit. Specialised liquidation Courts now allow for the appointment of expert liq- uidators capable of managing cryptographic key recovery and on-chain asset transfers tasks beyond the scope of traditional liquidators. A major challenge is determining whether assets in an exchange’s wallet are trust property (belonging to users) or company assets available to general credi- tors. Smart contract clawbacks CAMA 2020 provisions on voidable preferences are difficult to apply to immutable, automated smart-con- tract payouts executed just prior to insolvency. The 2026 NGN2 billion recapitalisation acts as a pru- dential buffer, ensuring that insolvent firms have the liquidity to fund administrative winding-up costs with- out depleting client funds. The market is shifting from liquidation towards resolution planning, mirroring the living will requirements of the banking sector. 1.2.6 Industry and Trade Bodies The crypto-asset industry in Nigeria is supported by several influential self-regulatory organisations and trade associations. These bodies have evolved from advocacy groups into critical compliance partners, Key Legal Hurdles Asset segregation
bridging the gap between the private sector and regu- lators. SiBAN SiBAN is the most prominent self-regulatory body in the country. It functions as a volunteer-driven associa- tion of blockchain stakeholders. SiBAN acts as the primary voice for the industry dur- ing policy formulation. Over the last year, its SiBAN Restoration Committee has been active in negotiat- ing with the SEC regarding the NGN2 billion capital requirement for VASPs, advocating for “pro-innova- tion” entry barriers. SiBAN maintains a Code of Conduct for members and a “Scam Alert” desk to flag fraudulent projects, serv- ing as an informal watchdog before matters reach the EFCC or SEC. Virtual Asset Service Providers Association (VASPA) VASPA is an emerging, more institutionally focused trade body that represents the interests of exchanges, custodians and digital asset intermediaries. Its primary objective is the formalisation of the sector. In April 2026, VASPA launched Project Green-White- Green, a policy White Paper aimed at streamlining the co-ordination between the SEC, the CBN and the tax authorities. VASPA works on creating technical benchmarks for its members, such as minimum standards for “Cold Stor- age” and API-based tax reporting systems to satisfy the new Finance Act requirements. FintechNGR While not exclusive to crypto, FintechNGR is the largest umbrella body for the digital finance sector and includes major blockchain players. It focuses on interoperability and financial inclusion, and facilitates high-level dialogues between the blockchain industry and traditional banking executives. It played a key role in the transition from the 2021 CBN crypto-restriction to the current Pilot Supervision regime.
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