Nigeria's cryptocurrency journey reads like a regulatory revolution in fast-forward. From the Central Bank's 2021 prohibition on crypto transactions to the groundbreaking Investment and Securities Act 2025 that officially recognizes virtual assets, Africa's largest economy has transformed from crypto skeptic to regional pioneer in less than four years. This dramatic shift reflects not just changing regulatory attitudes, but Nigeria's emergence as a continental leader in digital asset adoption and innovation.

In this comprehensive Q&A, Decency Nkume provides insider perspective on Nigeria's remarkable crypto regulatory evolution and its implications for Africa's digital transformation. As one of Nigeria's leading experts in Web3 and digital assets law, with extensive experience advising financial institutions and government agencies, Nkume offers unique insights into the country's strategic positioning in the global crypto ecosystem.

His multifaceted expertise—spanning intellectual property, tax law, and emerging technologies—combined with his active involvement in Africa's tech community as a Binance Tech Scholar, NFT Talent Program alumnus, and Non-executive leader of Young People In Tech, positions him at the critical intersection of law, technology, and policy development. Having co-authored chapters on AI liability frameworks and contributed to international guidance on metaverse regulation, Nkume brings both academic rigor and practical experience to understanding how traditional legal frameworks are adapting to Web3 innovations.

As Nigeria positions itself as the second-ranked country globally for cryptocurrency adoption, the regulatory decisions made today will shape not only the country's digital future but influence regional approaches across West Africa. From the implementation of new tax frameworks for digital assets to the evolving intellectual property protections for AI-generated content, Nigeria's approach offers valuable lessons for emerging markets navigating the intersection of innovation and regulation.

Key Areas Explored:

• Nigeria's regulatory transformation and regional leadership in crypto adoption
• Cross-border implications of new tax frameworks for digital assets
• AI and Web3 intellectual property challenges in African markets
• Strategic advice for legal professionals and entrepreneurs in Africa's digital ecosystem

As one of Nigeria's leading experts in Web3 and digital assets law, and given your extensive work with financial institutions and government agencies, how do you assess Nigeria's current regulatory approach to cryptocurrency compared to other West African jurisdictions?

As Mahatma Gandhi aptly said, “First they ignore you, then they laugh at you, then they fight you, then you win.” This quote encapsulates Nigeria’s regulatory relationship with cryptocurrency over the years. Initially ignored and later ridiculed as a speculative fad, cryptocurrencies faced significant pushback from Nigerian regulators, notably through the Central Bank of Nigeria’s (CBN) February 2021 directive, which prohibited financial institutions from facilitating crypto transactions and led to account closures for crypto traders. However, Nigeria’s vibrant youth population, estimated to account for a significant portion of crypto transactions continued to drive adoption, leveraging peer-to-peer platforms to bypass restrictions.

This resilience has ushered in a phase of regulatory acceptance, where crypto is increasingly “winning.” In December 2023, the CBN reversed its stance, issuing guidelines allowing banks to open accounts for virtual asset service providers (VASPs), provide designated settlement accounts, and facilitate forex inflows for crypto transactions. Now we have a game changer with the Investment and Securities Act 2025 which officially recognizes virtual assets under Nigerian Law, making them fall under the regulatory oversights of the Nigerian Securities and Exchange Commission. Additionally, the New Nigerian Tax Legislations (Nigeria Tax Administration Act 2025) now subjects gains from disposal of digital asset, to capital gains tax, signalling formal integration into Nigeria’s financial system.

Compared to other West African jurisdictions, Nigeria’s approach is relatively advanced but still evolving. Ghana, for instance, has taken a cautious yet progressive stance, with the Bank of Ghana piloting a central bank digital currency (e-Cedi) and issuing sandbox frameworks for blockchain innovation, though it lacks comprehensive crypto regulations. Senegal has explored blockchain through initiatives like the eCFA, a digital currency project, but has not yet formalized crypto regulations. Côte d'Ivoire and other Francophone West African countries, under the BCEAO (Central Bank of West African States), maintain a conservative stance, with no clear crypto-specific frameworks, focusing instead on regional financial stability. Nigeria’s proactive measures, including SEC oversight and tax policies, position it as a leader in the region, though challenges like regulatory clarity and enforcement remain.

With Nigeria being Africa's largest economy, what role do you see the country playing in shaping regional crypto regulation, and what specific regulatory developments do you anticipate will most impact cross-border digital asset transactions in West Africa over the next 2-3 years?

As Africa’s largest economy and the second ranked country globally for cryptocurrency adoption, Nigeria has strategically positioned itself to continue to play the role as the Regional frontrunner in shaping cryptocurrency adoption. For me, over the next 2-3 years, one regulation that could heavily impact cross border digital asset transactions in Nigeria, is the full implementation of the Nigerian Tax Administration Act 2025 as it relates to taxation on gains made from crypto transactions. This could drive players in the crypto space to seek refuge in decentralized exchanges, where it would be more difficult for the Nigerian Revenue Service and other relevant regulators to track such gains.

Drawing from your contribution to "The AI Revolution: The International Legal Perspective" and your work with the International Bar Association's Global Metaverse Guide Project, how are traditional intellectual property frameworks adapting to handle AI-generated content and Web3 innovations in Nigeria and across Africa?

I co-authored Chapter 6 of the IAEL book “The AI Revolution: The International Legal Perspective,” which focused primarily on the determination of liability in the use of AI. While the work with the IBA is strictly with Regulatory framework  as it affects Metaverse in Nigeria and Africa.  Beyond that academic contribution, my firm, Punuka Attorneys & Solicitors, in collaboration with Google and the Federal Ministry of Arts, Culture, Tourism, and the Creative Economy, conducted a nationwide survey last year on the impact of AI in the creative economy. The findings revealed high adoption rates in the music, literary, and film sub-sectors. However, key concerns consistently raised by stakeholders included questions of intellectual property ownership in AI-generated and AI-assisted works, the risk of job displacement, bias in AI systems, and data privacy indeed, 100% of participants expressed unease about data ownership and the lack of transparency in how AI outputs are created.

In my view, these challenges highlight the urgent need for Nigeria to enact a dedicated AI Act that addresses novel legal and ethical issues around AI use. In addition, our existing IP framework, particularly the Copyright Act 2022, should be amended to expressly determine the legal status of AI-generated works and to align Nigeria’s approach with emerging international standards. This kind of reform is essential not just for Nigeria but for Africa more broadly if the region is to remain competitive and protect both creators and innovators in the Web3 and AI era.

As a Binance Tech Scholar, NFT Talent Program alumnus, and Non-executive leader of Young People In Tech, you've positioned yourself at the intersection of law, technology, and mentorship in Africa's growing tech ecosystem. How do you see the role of legal professionals evolving in supporting Africa's digital transformation, particularly in fintech and Web3?

The role of legal professionals has always been to provide solutions, but in Africa’s digital transformation journey, that role must evolve. To be effective, lawyers cannot limit themselves to abstract legal advice; they must also understand the business models and, more importantly, the underlying technology. This kind of insight cannot be gained from the sidelines. it requires active engagement with innovators and industry players. Technology in the 21st century is advancing at an unprecedented pace, often faster than even technologists can fully grasp. In this context, lawyers must go beyond traditional advisory work. We need to serve as both legal strategists and policy advocates, helping to shape regulatory frameworks that will allow fintech and Web3 businesses to thrive while ensuring trust, compliance, and investor protection.

What advice would you give to young African lawyers and tech entrepreneurs about navigating the regulatory landscape while building innovative blockchain and AI-powered solutions that can compete globally?

I strongly believe that innovation in blockchain and AI often outpaces regulation, creating both opportunities and challenges for those building solutions in these spaces. To navigate this effectively, young African lawyers and tech entrepreneurs should continuously stay abreast of regulatory developments and engage regulators proactively through early consultations and open dialogue. This will help mitigate compliance issues and reduce the risks associated with piloting such solutions.

It is also important to leverage existing regulatory sandbox frameworks. In Nigeria, for example, the Accelerated Regulatory Incubation Program (ARIP), launched by the Securities and Exchange Commission, allows virtual asset service providers (VASPs) to test their solutions under supervision. This approach not only builds trust with regulators but also positions startups and legal professionals as partners in developing globally competitive solutions.

Another strategy is to create or join effective sectoral and stakeholder associations. I admire what Young People in Tech (YPIT) and the Stakeholders in Blockchain Association of Nigeria (SiBAN) are doing, not only by providing resources to their members but also by playing an active role in shaping Nigeria’s regulatory policy models.

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