Abuja: The Securities and Exchange Commission (SEC) has expressed optimism that Nigeria is on the verge of being removed from the Financial Action Task Force (FATF) grey list. This confidence stems from the recent signing of the Investments and Securities Act (ISA 2025) by President Bola Tinubu. Dr. Emomotimi Agama, Director-General, SEC, confirmed this in a statement on Wednesday.
According to News Agency of Nigeria, Nigeria was placed on the FATF ‘grey list’ on February 24, 2023, alongside other jurisdictions due to deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CFT) regime. Agama highlighted that the inclusion of comprehensive regulations for digital assets in the ISA 2025 has provided the country with an opportunity to exit the grey list. He emphasized that these measures aim to curb fraudulent activities in the digital space, fostering trust and innovation in blockchain technologies.
Agama noted that trading in cryptocurrencies does not weaken the Naira and assured that the commission would provide guidance to ensure that business activities align with national interests. The SEC now has the authority to regulate entities in the digital asset space, encouraging them to seek regulatory compliance and guidance to protect national economic interests.
‘We are working with the Central Bank of Nigeria, the Economic and Financial Crimes Commission, the Nigeria Financial Intelligence Unit, and the Office of the National Security Adviser to ensure that digital asset regulations do not harm Nigeria’s interests,’ Agama stated. He explained that the SEC is currently implementing moderated regulation due to the high number of applications for licenses to operate in the space.
Agama disclosed that the commission is utilizing regulatory and accelerated incubation programmes to evaluate the risks posed by institutions to the Nigerian economy and its citizens. He assured that the processes are nearing completion, with results to be announced soon. Additionally, the SEC is introducing risk management as a legal instrument to guide capital market operators and securities issuances, thereby enhancing investor protection through improved KYC processes.