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Stay ahead with our Regulatory Digest—your essential guide to the latest trends and insights shaping the tech and other sectors.
Introduction
This edition provides a concise overview of key regulatory developments impacting Nigeria and the broader African region. It highlights advancements in governance, economic reform, technological innovation, and judicial rulings, reflecting ongoing efforts to strengthen institutional frameworks and foster growth across various sectors.
A quick summary...
CBN Releases Statement of Commitment to the FX Code
The CBN has released a statement of commitment to the FX Code. The CBN acknowledges the FX Code as a global standard and reaffirms its commitment to upholding its principles. The Apex bank also aligns its regulatory role with the Code’s guidelines to promote transparency and stability in the FX market.
This position is likely to boost investor confidence, attract foreign direct investment, and enhance liquidity in the FX market, creating a more predictable and resilient financial environment. Additionally, the improved stability in exchange rates could strengthen the naira, reduce inflationary pressures, and increase purchasing power for Nigerians.
The President Approves the Investment and Securities Act (Amendment) Bill 2025
The main objective of the Investment and Securities Act (ISA) 2024 is to introduce reforms and transformative provisions to modernise Nigeria’s capital market framework and further align it with international best practice. The Securities and Exchange Commission (SEC) announced the signing of the bill into law by the President on March 29, 2025, and it repeals the Investment and Securities Act 2007.
The Act represents the most significant overhaul of Nigeria’s capital market framework since 2007, and it introduces key provisions such as; the explicit recognition of virtual assets (e.g., cryptocurrencies) as securities, with oversight of Virtual Asset Service Providers (VASPs) and Digital Asset Operators (DAOPs), stricter penalties for unlawful investment schemes, etc.
The Act will facilitate and enhance investor protection, market transparency, and Nigeria’s global competitiveness. A more detailed analysis of the Act will be published soon.
SEC Enforces Regulatory Actions Against Capital Market Operators
As part of its regulatory functions, SEC cancelled the registration of a capital market operator due to non-compliance with regulatory directives and unresolved complaints. Clients have been advised to contact the Central Securities Clearing System (CSCS) for guidance on transferring their stocks to another stockbroker. Regulatory bodies, including Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), the Central Securities Clearing System (CSCS) have been directed to cease dealings with the company.
In a similar move, the sponsored individuals and directors of another company have been suspended from all capital market activities for failing to comply with regulatory directives and resolve multiple complaints. Its clients have been directed to reach out to Africa Prudential Plc for assistance in transferring their portfolios. Regulatory bodies and market associations have also been instructed to discontinue engagements with the firm.
These actions align with the SEC’s commitment to enforcing market sanctity and maintaining investor confidence.
SEC to Publish Infractions of Capital Market Operators (CMOs)
SEC has reiterated its zero-tolerance policy on market infractions by announcing that the names of CMOs who violate regulations will be published in its “name and shame” journal. The publication will be in addition to existing sanctions under the Investment and Securities Act 2007 and SEC Rules.
SEC Warns Against Illegal Investment Schemes
The SEC has warned the public against engaging with certain entities for falsely presenting themselves as Investment Advisers/Fund Managers in the Nigerian Capital Market. Investors have been strongly advised to avoid dealings with these firms or their representatives to prevent fraud and potential financial losses. Additionally, the SEC has urged the public to always verify the registration status of investment firms via its portal before engaging in any capital market transactions.
NITDA Launches AI Transformation Roadmap
NITDA released its AI Transformation Roadmap, outlining strategies for integrating artificial intelligence across various sectors. The roadmap emphasises ethical AI deployment, capacity building, and research and development. By fostering AI adoption, NITDA aims to drive innovation, improve service delivery, and position Nigeria as a leader in the global AI landscape. This initiative encourages tech companies to develop AI solutions tailored to local challenges, opening avenues for growth and collaboration.
NITDA Collaborates with Fintechs to Enhance Digital Inclusion for SMEs
On March 12, 2025, NITDA announced a partnership with fintech companies Flutterwave and Alami to enhance digital inclusion for Nigerian Small and Medium-sized Enterprises (SMEs).This collaboration focuses on providing SMEs with digital tools and platforms to improve their operations and competitiveness. By leveraging fintech innovations, the initiative aims to empower local businesses, stimulate economic growth, and foster a more inclusive tech ecosystem. This collaboration focuses on providing digital tools and resources to small and medium-sized enterprises, aiming to enhance their competitiveness in the digital economy.
Presidential Directive for NITDA to Coordinate AI Development in Nigeria
The Nigerian President directed NITDA to take the lead in coordinating artificial intelligence (AI) development in Nigeria while the Federal Ministry of Communications, Innovation and Digital Economy provides strategic oversight. This mandate was announced following a strategic meeting between NITDA and Google in Paris, France, highlighting the administration’s commitment to fostering AI innovation in the country. This move has significant implications for Nigeria’s tech ecosystem, as it reinforces AI as a key pillar of economic growth and technological advancement. By placing NITDA at the centre of AI governance, the government aims to create a structured framework that balances AI adoption with ethical considerations and regulatory oversight.
NIMC Collaborates wIith NELFUND
The National Identity Management Commission (NIMC) signed a Memorandum of Understanding (MoU) with the Nigeria Education Loan Fund, aimed at enhancing access to education loans for Nigerian students. This initiative is part of broader efforts to foster growth and human development by leveraging technology and identity verification to streamline financial services. The agreement involves the issuance of multi-purpose Government-to-People (G2P) cards linked to the National Identity Number (NIN). These cards are designed to facilitate direct access to upkeep loans and other financial services for students.
The collaboration represents a significant step toward leveraging technology to improve access to education and financial services in Nigeria, with potential long-term benefits for both individual development and national economic growth.
Court Rules Against MTN in a Trademark Infringement Suit
In a trademark infringement case, the Federal High Court in Lagos, has ordered the telecom giant, MTN to pay ₦840 million in damages for trademark infringement to Citilink. The case centred on MTN’s unauthorised use of the registered trademark “WEBPLUS”, a violation that spanned over a decade.
This case highlights Nigeria’s growing commitment to intellectual property protection, signalling to local and foreign businesses that trademark violations will face serious consequences. Companies may now prioritise due diligence in trademark usage to avoid costly litigation and reputational risks, fostering a more compliant corporate culture.
Tunisia Cracks Down on Ride-Hailing Apps
A comprehensive probe has been initiated by the government into claims of money laundering and tax evasion, sending shock waves through Tunisia's transportation sector. Ride-hailing services are being accused of running without valid permits and utilising fake documentation. It's not just a matter of paperwork; they are allegedly using bank accounts to secretly transfer funds overseas.
This edition underscored significant progress in areas such as financial transparency, technological leadership, and legal enforcement. These developments signal a continued commitment to fostering innovation, protecting investors, and promoting inclusive growth. As Nigeria and other African nations advance their regulatory agendas, these measures lay the groundwork for a more resilient and dynamic ecosystem.
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