The House of Representatives Ad-Hoc Committee on the Economic, Regulatory and Security Implications of Cryptocurrency Adoption and PoS Operations successfully convened a high-level capacity-building programme at the National Assembly Complex, Abuja.

The session brought together policymakers, regulators, and leading industry operators to strengthen institutional understanding of digital assets, cryptocurrency markets, and emerging financial technologies, with the goal of supporting evidence-based legislative and regulatory decision-making.

Key Highlights

The programme featured structured sessions covering:

Opening Remarks & Strategic Direction

The Securities and Exchange Commission emphasized the importance of investor protection and the need for Nigeria to proactively position itself within the global digital asset ecosystem.

In his keynote address, Committee Chairman Honourable Bamisile underscored the strategic importance of the Committee's mandate, highlighting both the opportunities and risks presented by digital assets. A central theme was the urgent need for regulatory harmonisation, particularly among the Central Bank of Nigeria, the Securities and Exchange Commission, and relevant security agencies.

Industry Insights & Market Reality

Leading industry operators, including Quidax and Busha, provided practical insights into the operational realities of digital asset platforms. They highlighted Nigeria's position as a global leader in cryptocurrency adoption, with participation estimated at approximately 35%, and the growing importance of digital assets in SME financing, cross-border payments, and remittances.

They also emphasised the need for strong oversight to address risks such as fraud, money laundering, and illicit financial flows — noting that compliance-driven platforms provide critical infrastructure for monitoring and enforcement.

Stablecoins & Monetary Considerations

Discussions on stablecoins highlighted their increasing role in payments, remittances, and decentralised finance, driven by their price stability, speed, and cost efficiency. However, concerns were raised regarding:

• Reserve transparency
• Counterparty risk
• Depegging risks
• Growing exposure to foreign-denominated stablecoins (e.g., USDT, USDC)

Stakeholders emphasised the need to explore Naira-denominated stablecoin frameworks as a strategic response to mitigate dollarisation risks and preserve monetary stability.

Critical Policy Issues Identified

A major concern raised during the session was the persistent delay in licensing digital asset operators. While over 100 applications have been submitted to regulators, only a small number have received approval in principle — largely due to required security clearances involving the Office of the National Security Adviser, creating a significant bottleneck. The Committee expressed concern that some applicants have remained in uncertainty for up to three years, and that these regulatory delays are discouraging investment and eroding Nigeria's competitiveness.

Key Findings

These issues were recognised as structural rather than isolated, requiring coordinated institutional reform.

Strategic Direction & Way Forward

The Committee emphasised the urgent need for a coordinated, multi-institutional response to the challenges identified:

1. A harmonised legal and regulatory framework
2. Clear definition of roles across the CBN, SEC, and ONSA
3. Transparent and time-bound licensing processes
4. Strengthened inter-agency coordination
5. Continued stakeholder engagement across government and industry

Conclusion