A Study of the Legal Status of Digital Assets and Cryptocurrency Under Nigerian Law

The regulatory status of digital assets and cryptocurrencies in Nigeria has been characterised by significant uncertainty following the Central Bank of Nigeria's 2021 prohibition directive and subsequent partial reversal through the Securities and Exchange Commission's Virtual Assets Service Providers framework of 2022. This study examines the evolving legal characterisation of digital assets under Nigerian property law, securities regulation, and financial services legislation. A doctrinal methodology was adopted, analysing CBN circulars, SEC regulations, draft Digital Assets legislation, relevant case law, and comparative frameworks in the United Kingdom, South Africa, and Ghana. Results reveal a fundamental definitional inconsistency across regulatory agencies, with the CBN treating digital assets as speculative instruments while the SEC classifies certain tokens as securities subject to registration requirements. Property rights in digital assets remain uncertain under Nigerian law, particularly regarding the application of Bills of Sale legislation and perfection of security interests in digital tokens. The study concludes that the current multi-agency, fragmented approach to digital asset regulation creates compliance confusion and drives crypto activity to unregulated peer-to-peer channels. Recommendations include enactment of a comprehensive Digital Assets and Virtual Service Providers Act, designation of a single lead regulator, and a regulatory sandbox for digital asset innovation aligned with the Central Bank's fintech policy objectives.

Keywords: digital assets, cryptocurrency, SEC regulation, CBN, Nigerian property law