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The House of Representatives has cautioned security agencies against indiscriminately profiling young Nigerians engaged in cryptocurrency and blockchain activities as internet fraudsters, stressing that innovation must be nurtured, not criminalised.
This position emerged during a high-level public hearing on Monday organised by the Ad-Hoc Committee on the Economic, Regulatory and Security Implications of Cryptocurrency Adoption and Point-of-Sale (PoS) Operations, chaired by Olufemi Bamisile, at the National Assembly Complex, Abuja.
The engagement brought together key actors from the public and private sectors, including cryptocurrency exchanges, blockchain associations, fintech innovators, and regulators, to deliberate on Nigeria’s future in digital finance.
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Opening the session, Mr Bamisile said the committee’s mandate was not to clamp down on innovation but to help the government understand and regulate it effectively.
He criticised what he described as “misplaced aggression” by some security agencies, especially the Economic and Financial Crimes Commission (EFCC) and the Nigeria Financial Intelligence Unit (NFIU), in their handling of cryptocurrency-related investigations.
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“Our goal is to create a framework to look that supports innovation without compromising security or financial integrity,” the lawmaker said. “Nigeria cannot afford to lag behind in the digital economy, but our progress must be anchored on transparency, coordination, and accountability.”
He added that security agencies must build technical expertise in blockchain and crypto operations, saying: “Not every young Nigerian with a laptop and a crypto wallet is a fraudster,” stressing that they must learn to separate innovation from crime.”
Committee members including Kama Nkemkama and Akinosi Gboyega echoed the chairman’s remarks, describing the ongoing public conversation around crypto as a chance to align law enforcement with financial technology realities.
The hearing drew wide participation from Nigeria’s leading digital asset operators and experts, among them Buchi Okoro (Quidax), Moyo Shodipo (Busha), Olaniyi Atose (KoinKoin), Oluwasegun Kosemani (Botmecash), Ayotunde Alabi (Luno Nigeria), Igwe Goodnews (Downtown), and Emeka Ezike (Bitbarter).
Also present were representatives from blockchain associations including Obinna Iwuno, president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN); Ihenyen, president of VASPA; Faith Okaformbah, representing the Blockchain Experts Association of Nigeria (BEAN); and Uyoyo Edema, CEO of CNGN (Convexity).
Participants described the meeting as historic, saying it was the first time the National Assembly had hosted a broad, credible conversation with verified operators on the future of digital assets.
Gender inclusion in the digital economy
The session also spotlighted inclusion and digital literacy. Speaking on behalf of Nigeria Women Bitcoiners (NWB), Mawahin Adams, co-founder of the women-led blockchain education collective, urged the government to integrate women’s voices in the development of national cryptocurrency policy.
She called for a National Digital Asset Literacy and Inclusion Programme, proposing that 1–2 per cent of annual crypto regulatory fees be reserved for digital inclusion projects. She also suggested incorporating digital-asset education into NYSC orientation programmes and secondary school curricula.
Balancing regulation, innovation
A notable highlight of the hearing was the lawmakers’ exchange with Buchi Okoro, co-founder of Quidax, over the company’s operations under the Securities and Exchange Commission (SEC) regulatory sandbox and its partnerships with gaming platforms like Bet9ja.
Lawmakers sought clarity on whether such integrations might circumvent SEC’s Accelerated Regulatory Incubation Programme (ARIP), which governs virtual asset service providers.
In response, Abdulrasheed Mohammed, head of Fintech Innovations at SEC, explained that the Commission maintains oversight of all sandbox activities to prevent abuse.
But Mr Bamisile urged SEC to balance firmness with flexibility, warning against bureaucratic inertia that could stifle innovation.
“Rather than punish innovation, we should strengthen supervision and taxation mechanisms through agencies like the Federal Inland Revenue Service (FIRS) so the sector contributes meaningfully to President Bola Tinubu’s ₦1 trillion digital economy vision,” he said.
“The SEC must guide with firmness, not fear, so we don’t stifle the creativity that will move this nation forward.”
Warnings against overregulation
Many participants warned that heavy-handed regulation or premature taxation could drive crypto activities underground.
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They urged the newly renamed Nigeria Revenue Service (NRS) to adopt a phased taxation policy, using incentives to encourage compliance rather than punishment.
Blockchain expert Oye Benson advocated the development of locally built regulatory technologies (RegTech) that can help government agencies monitor, audit, and report transactions effectively.
He said such tools would strengthen Nigeria’s digital sovereignty, create jobs, attract foreign investment, and build capacity within the local tech ecosystem.
The hearing comes just days after Nigeria’s removal from the Financial Action Task Force (FATF) grey list, a milestone that restored international confidence in its anti-money laundering framework.
Nigeria remains one of the largest cryptocurrency markets in the world, yet operates without a unified law regulating digital assets. The Bamisile Committee is expected to submit recommendations to guide the National Assembly in developing Nigeria’s first comprehensive legal and regulatory framework for cryptocurrency and digital finance.
