As Nigeria continues to cement its position as a leading hub for financial technology in Africa, the legal frameworks governing the sector are undergoing significant evolution. A new analysis by Ejike Nwafor Esq, principal partner at Ejike Nwafor & Partners LLP, outlines how recent legislative reforms are reshaping the ease of doing business for fintechs and global investors entering the market.
From the digitization of corporate registration to the specific regulation of virtual assets, here is a breakdown of the key regulatory developments defining Nigeria’s fintech landscape.
A new legal bedrock for digital finance
The foundation of Nigeria’s business environment has been strengthened by the Companies and Allied Matters Act (CAMA) 2020 and the recently enacted Investments and Securities Act (ISA) 2025.
According to Nwafor, CAMA 2020 has been instrumental in simplifying company formation, crucial for agile fintech startups. It permits single-member private companies, introduces electronic filings, and removes mandatory audits for small companies, significantly reducing the “time and cost of formalization”.
Looking forward, the ISA 2025, signed into law in December 2025, represents a major overhaul of the 2007 Act. Nwafor notes that this new law specifically expands the Securities and Exchange Commission’s (SEC) powers over digital finance and redefines market conduct regimes to align with global standards.
Bringing digital assets into the fold
For investors eyeing the crypto and blockchain space, regulatory clarity has been a primary concern. The SEC has moved to address this by bringing crypto-assets under the purview of securities law.
- Digital Asset Rules: In 2022, the SEC rolled out comprehensive regulations covering digital asset issuance, offering platforms, custodians, and exchanges.
- Compliance & Safety: These frameworks impose strict compliance obligations, including Know Your Customer (KYC) and licensed participation, designed to protect investors and ensure market integrity.
- AML/CFT: Enhanced Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations were introduced for all capital market operators, requiring internal policies to report suspicious transactions.
Foreign investment and capital repatriation
For global fintech investors, the ability to enter the market and repatriate funds is paramount. Nwafor highlights two key statutes that facilitate this:
- NIPC Act 2007: This act liberalizes foreign investment, allowing foreigners to own 100% of most Nigerian companies and guaranteeing unrestricted repatriation of dividends and interest.
- FEMPA: The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act ensures that any foreign capital brought in through authorized dealers (issuing a Certificate of Capital Importation) can be repatriated without unreasonable restrictions.
While acknowledging that secondary forex controls exist, Nwafor emphasizes that these laws provide a statutory assurance that makes Nigeria attractive to international capital.To further spur the technology sector, the Nigeria Startup Act 2022 was enacted to remove “onerous legal, regulatory, tax and administrative bottlenecks”. This law creates a National Council for Digital Innovation and provides specific tax reliefs and easier visa processing for tech entrepreneurs, directly addressing talent and funding obstacles.
While the regulatory environment is becoming more robust, compliance remains high. Fintechs must navigate SEC rules, CBN prudential regulations, and data protection laws simultaneously. However, Nwafor concludes that these reforms are creating a clearer supervisory structure that aligns Nigeria with international banking standards, ultimately enhancing transparency and investor trust.