The Securities and Exchange Commission (SEC) has addressed the reasons behind the delay in issuing additional provisional licences for cryptocurrency exchanges in Nigeria, following the initial approvals granted to Quidax and Busha in August 2023. According to the SEC, the pause stems from the need for more in-depth due diligence and alignment with new regulatory developments.
Speaking during a virtual session with fintech stakeholders on Monday, centred on the Investment and Securities Act (ISA 2025), SEC Director General Emomotimi Agama explained that while the Commission has received numerous applications before and after the issuance of the initial licences, subsequent assessments have revealed the need for enhanced scrutiny.
“I must apologise to people or individuals, and companies that have applied ever since before the issuance of the provisional licenses and up to this point. That work has been happening on the ground,” Agama said.
He continued: “Out of those first provisional licenses, we have observed some very important issues which we need to take care of. We have observed that some additional level of due diligence, what I call a level three due diligence, needs to happen before we can come out with the next provisional licenses. It may appear to have taken too long, more than necessary.”
Agama further noted that the involvement of other regulatory bodies in the licensing process has contributed to the extended timeline. The SEC, he explained, is working collaboratively with these agencies, many of which operate independently, to ensure that all concerns are thoroughly addressed before moving forward.
He emphasised that the Commission is not intentionally delaying the process. “We have to do everything necessary to make sure that every gap that we have seen is covered,” he stated.
In addition to the due diligence process, the SEC is also revising its regulatory framework in response to the recent enactment of the Investment and Securities Act (ISA 2025). Agama said this legislative update necessitates adjustments to the Commission’s licensing protocols to ensure full compliance and regulatory clarity.
“This is in collaboration with other sister agencies for which we have very little control around their processes, and so we wait and hope to hear from everyone within the shortest time frame in order to be more comfortable with the licenses or provisional licenses that will be issued out,” he added.
In August last year, the SEC granted Approval-in-Principle to Quidax and Busha under its Accelerated Regulatory Incubation Programme (ARIP), recognising them as legitimate crypto trading platforms in Nigeria. Alongside these approvals, the Commission also admitted four additional companies—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—into its Regulatory Incubation (RI) Programme, allowing them to test their platforms and technologies under SEC supervision.
At the time, the Commission clarified that these firms were not the only applicants under consideration. It assured that other submissions were still under review and would be granted Approval-in-Principle individually as they satisfied all regulatory requirements.