Senator Izunaso Calls for Urgent Action on Tokenisation Regulations

Call for Accelerated Regulations

Senator Osita Izunaso, who leads the Senate Committee on Capital Market and Institutions, has issued a strong challenge to the Securities and Exchange Commission (SEC) regarding the need to hasten the regulatory framework for digital assets and tokenisation. He cautioned that the current delays could hinder Nigeria’s chances of tapping into emerging investment opportunities.

This statement was made during the National Capital Market Conference 2026 held in Abuja, coinciding with the SEC’s presentation of the Nigerian Capital Market Master Plan 2.0. This is an ambitious ten-year strategy designed to enhance the capital market and foster long-term financing.

Readiness for Global Tokenisation

Despite Nigeria's recognition of digital assets under the Investments and Securities Act 2025, Izunaso questioned the country’s readiness to engage in the burgeoning international tokenisation sector. He highlighted that without clearer regulatory frameworks, investment prospects may be compromised.

The senator pointed out that many Nigerian stakeholders are venturing abroad to explore tokenisation opportunities, while the domestic regulatory landscape remains incomplete. He posed a critical question: “Do we have an enabling law for token development in Nigeria?”

Izunaso urged the SEC and relevant authorities to expedite their efforts, noting that international trading of digital assets is already a reality.

Legislative Developments and Regulatory Proposals

The senator referenced a commitment from a presidential committee led by the governor of the Central Bank of Nigeria, expressing hope for advancements in establishing a digital asset framework within the next month. He raised specific concerns regarding delays in land and asset tokenisation, emphasizing the need for a robust approach in this area.

Moreover, Izunaso called for more entities, particularly Nigeria National Petroleum Corporation (NNPC) Limited and leading telecommunications companies, to list on the Nigerian Exchange. He highlighted a significant disparity in Nigeria’s market, noting that while over five million companies are registered, only about 151 are publicly listed.

According to him, increased listings could enable more Nigerians to invest in major firms and enhance domestic investment avenues.

Foundational Legal Framework for Digital Assets

Nigeria has already taken steps to regulate digital assets, chiefly through the Investments and Securities Act 2025. This legislation acknowledges the existence of virtual assets and strengthens the SEC’s supervisory capabilities over related digital operators and exchanges.

Reports indicate that the law has laid down a clearer legal foundation for the regulation of cryptocurrencies and similar virtual assets classified as securities. In August 2026, the SEC proposed registration fees totaling N30 million for distinct categories of digital asset operators, including those involved in tokenisation of real-world assets. Tokenisation, which involves the representation of ownership through digital tokens on blockchain technology, offers the potential for fractional ownership in assets like real estate and bonds, although it also raises concerns regarding investor protection and the legal validity of such ownerships.

Need for Transparency and Supportive Regulations

During the SEC’s Regulator/FinTech Clinic on October 7, 2026, Director-General Emomotimi Agama reiterated the necessity for clear regulatory pathways for digital platforms entering the market. He emphasized that the SEC is open to feedback and aims to support innovation while ensuring compliance and investor protection.

Izunaso's remarks come at a crucial time as Nigeria looks to implement its Capital Market Master Plan 2.0, which aims to expand the capital market from approximately N250 trillion to N750 trillion by 2036. The strategy aims to deepen participation in investments, broaden financing opportunities, and enhance the market’s role in economic growth.

The SEC is also rolling out a National Savings Scheme designed to benefit various demographics, including traders and young graduates, by channeling household savings into productive investments managed by licensed fund managers.

While these developments are promising, a critical challenge remains: how to accelerate regulatory implementation that effectively manages risks associated with fraud, inadequate disclosures, and the enforceability of ownership rights. As the Investments and Securities Act (ISA) 2025 sets the groundwork for overseeing digital assets, the urgent task for regulators is to provide the necessary clarity to foster market confidence and sustainable growth.