The Central Bank of Nigeria (CBN) has stepped up efforts to strengthen oversight of the country’s fast-growing digital finance sector, unveiling a new payments committee alongside a pilot compliance programme targeting cryptocurrency operators.
Announced on 31 March 2026, the initiative introduces a supervisory framework for virtual asset service providers (VASPs), bringing major fintech players such as Flutterwave and Paystack under closer regulatory scrutiny to improve financial system stability and anti-money laundering compliance.
The move marks a significant shift in Nigeria’s approach to cryptocurrency regulation. After restricting banks from facilitating crypto transactions in 2021, regulators began easing their stance between 2023 and 2024. The latest development signals a transition towards active supervision and risk management of digital assets.
The first cohort of the multi-phase programme includes Flutterwave, Paystack, KuCoin, cNGN, Juicyway and KoinKoin, representing a mix of payments infrastructure providers and crypto platforms across Nigeria’s fintech ecosystem.
Participating firms will undergo intensive regulatory engagement, including monthly submission of anti-money laundering, counter-terrorism financing and counter-proliferation financing performance indicators. They will also take part in regular supervisory sessions with the CBN and the Nigerian Financial Intelligence Unit.
The programme will review governance structures, customer onboarding processes, cross-border transaction flows, sanctions screening systems and transaction monitoring frameworks. Firms are also required to provide implementation plans for the Financial Action Task Force “Travel Rule”, which mandates the sharing of transaction data to curb illicit financial flows.
The initiative aligns with global standards under Financial Action Task Force Recommendations 15 and 16, focusing on the regulation of virtual asset providers, transparency in cross-border digital transactions and prevention of financial crimes. This alignment is particularly important as Nigeria continues to face scrutiny over financial crime risks and capital flows.
Despite regulatory tightening, Nigeria remains one of the world’s largest cryptocurrency markets, consistently ranking among the top five globally for adoption. Digital assets are widely used for remittances, cross-border payments and as a hedge against currency volatility.
The CBN clarified that participation in the pilot does not confer licensing or regulatory approval, describing the programme as a testing ground to assess risks, improve compliance readiness and prepare firms for future regulation.
The pilot forms part of a broader regulatory push in 2026, which includes new automated anti-money laundering requirements and the introduction of a Cybersecurity Self-Assessment Tool for financial institutions. These measures are aimed at strengthening oversight, closing regulatory gaps and building trust in Nigeria’s financial system.
Alongside the crypto initiative, the CBN has inaugurated a Payments Service Providers’ Committee to improve coordination across the digital payments ecosystem.
Speaking at the inaugural meeting in Lagos, CBN Deputy Governor for Economic Policy, Dr Abdullahi Sani, said the committee brings together licensed providers and key regulators to address industry challenges and sustain growth.
“In 2024 alone, over 11.2 billion electronic transactions valued above N1.07 quadrillion were processed,” he said.
He noted that this marked the first time transaction values exceeded the quadrillion-naira threshold, highlighting the rapid expansion of Nigeria’s digital payments sector.
“The momentum has continued into 2025 and early 2026, reflecting a fast-growing ecosystem with implications for inclusive growth and trade,” he said.
Sani added that the committee would support policy coordination, knowledge sharing and joint problem-solving among stakeholders, with regulators including the NCC, NDIC and SEC expected to participate in quarterly meetings.
“The initiative will enable joint efforts to address challenges and position Nigeria competitively in the global payments space,” he said.
He added that Nigeria remains a leader in payment innovation, with fintech solutions outperforming many regional peers.
No comments:
Post a Comment