Chief Officer of one of the first licensed crypto platforms in Africa, Luno Nigeria, Ayotunde Alabi, speaks to FELIX OLOYEDE on the latest developments in the country’s digital asset ecosystem
President Bola Tinubu recently signed a new bill that classifies digital assets and cryptocurrencies as securities, bringing them under the regulation of the Nigerian Securities and Exchange Commission. What, in your opinion, is the immediate impact of this on Nigeria’s crypto landscape?
This is a pivotal development for Nigeria’s digital asset ecosystem. By formally recognising cryptocurrencies as securities, the new legislation brings long-anticipated regulatory clarity to the sector. It immediately establishes a legal foundation upon which market participants—be they investors, service providers, or regulators—can operate with increased certainty and accountability. For years, the ambiguity surrounding the status of digital assets in Nigeria has made it difficult to attract institutional capital or scale innovation at pace. The enactment of the Investments and Securities Act 2025 marks a new era: one where consumer protection, market integrity, and innovation can co-exist within a clear regulatory framework.
The SEC’s enhanced regulatory powers are expected to bring more oversight to the crypto industry. What specific changes do you anticipate for exchange platforms in terms of compliance and operations?
With enhanced powers comes a more robust compliance environment. We anticipate that exchange platforms will be required to strengthen their internal governance structures, from onboarding processes and AML/KYC protocols to transaction monitoring and disclosure standards. Licensing will likely become more detailed and tiered, depending on the nature of services provided. In addition, platforms may be expected to maintain regular reporting obligations, implement more granular risk management procedures, and ensure full alignment with data protection and consumer redress frameworks. While these requirements may raise the operational bar, they are crucial steps in deepening credibility, institutional interest, and long-term market stability.
What is the role of collaboration between crypto exchanges and regulators?
Collaboration is fundamental, especially in a market where regulation is evolving alongside innovation. Crypto exchanges sit at the coalface of technological advancement and consumer engagement, while regulators are tasked with maintaining financial stability and safeguarding the public interest. When both parties work in silos, mistrust and inefficiencies emerge. But when there is constructive engagement, it becomes possible to design frameworks that are informed, pragmatic, and fit-for-purpose. At Luno, we have made regulatory engagement a cornerstone of our approach in Nigeria. We actively participate in consultations, pilot programmes, and regulatory roundtables; we also ensure that our business remains aligned with local expectations while advocating for policies that support safe innovation.
With the SEC pushing to get cNGN listed on exchanges, how significant is this effort for the Nigerian crypto ecosystem?
It is a major step forward. A regulated stablecoin, such as cNGN, has the potential to unlock a range of use cases—from seamless cross-border payments and remittances to enhanced liquidity on local exchanges and broader participation in decentralised finance applications. cNGN could also serve as a trusted digital representation of the naira, addressing some of the volatility concerns that have hindered broader adoption of cryptocurrencies for everyday use. Beyond its functional utility, cNGN symbolises the regulator’s commitment to engaging with blockchain innovation proactively. It sends a clear message that digital currency infrastructure can—and should—coexist with traditional financial systems, under the watchful eye of competent regulators.
The regulatory sandbox is expected to play a key role in market growth and compliance. From your perspective, what criteria should be prioritised for admitting firms into this sandbox?
The sandbox should be a space for genuinely innovative solutions that carry the potential to solve real-world problems, whether in payments, access to finance, or market inclusion. Admission criteria should prioritise technological originality, consumer benefit, and readiness to comply with risk management protocols. Regulatory readiness should also be assessed—firms should demonstrate a willingness to engage transparently, share learnings, and adapt their models based on feedback. It is equally important that the sandbox facilitates meaningful dialogue and data exchange between regulators and innovators. In this way, the sandbox becomes more than a testbed—it becomes a crucible for shaping future-fit regulation.
You have led Luno Nigeria during a period of intense regulatory scrutiny and rapid growth. How has your leadership approach evolved in response to Nigeria’s shifting crypto landscape?
Navigating a space as dynamic and complex as Nigeria’s crypto industry has required a leadership approach that is adaptive, grounded, and collaborative. I have learned the importance of leading from the front—whether that means engaging with regulators, listening intently to customer feedback, or supporting my team through moments of uncertainty. Transparency, resilience, and empathy have been guiding principles. I have also prioritised strategic alignment: ensuring that our local operations are not only compliant but also reflective of Luno’s global values. Ultimately, my role has been to create the clarity and structure needed for our people to thrive, even as the external environment continues to evolve.
As CEO of Luno Nigeria, what would you say has been your proudest achievement in navigating the complexities of the Nigerian crypto market?
One standout achievement has been reinforcing Luno’s reputation as a responsible, customer-first platform amid widespread industry volatility. We have built a strong foundation of trust, not just with our users, but also with regulators, policymakers, and the broader financial ecosystem. We have also deepened our local relevance through education, product enhancements, and strategic market moves, including the listing of new coins and our push for more competitive exchange fees. That we have managed to do this while maintaining compliance and growing our customer base is something I am incredibly proud of. It reflects the dedication and tenacity of the team here in Nigeria.
Luno is recognised as one of the first licensed crypto platforms in Africa, approved by an African Central Bank. How does this distinction shape your approach to compliance and innovation in Nigeria?
Luno is indeed among the first crypto platforms in Africa to receive regulatory approval, specifically from the South African Financial Services Conduct Authority, which recognition carries weight, and we treat it with the seriousness it deserves. It affirms that it is possible to operate a crypto platform that is innovative, scalable, and fully compliant with regulatory standards. In Nigeria, it reinforces our willingness and approach to building long-term, sustainable operations. We do not view compliance as a checkbox—it is a competitive advantage. Our product roadmap, marketing, and partnerships are all developed through a compliance-first lens, which has helped us weather regulatory shifts more confidently. At the same time, we remain deeply committed to innovation, finding ways to localise our global offerings while supporting responsible financial inclusion across the market.
Where do you see the Nigerian crypto industry heading over the next five years, especially with this new legal framework in place?
The next five years could mark a period of significant transformation. With the ISA now providing legal clarity, we can expect greater institutional involvement, increased investment in infrastructure, and the emergence of locally regulated crypto products and services. Stablecoins, tokenised assets, and blockchain-based payment rails will likely gain prominence, especially if supported by complementary policies around data protection, digital identity, and taxation. As trust builds, we could also see deeper integration of crypto into mainstream financial services. However, this will depend on the industry’s ability to maintain high standards and the regulator’s capacity to adapt quickly to innovation without compromising oversight.
The Investments and Securities Act 2024 seeks to provide greater oversight and structure to the crypto industry. What will be the impact of this on investor confidence and mainstream adoption of cryptocurrencies in Nigeria?
Investor confidence thrives on certainty, and the new Investments and Securities Act delivers just that. By defining digital assets as securities and empowering the SEC with a mandate to oversee them, the law reduces ambiguity and increases transparency for both institutional and retail participants. This clarity reassures investors that the market is being supervised and that operators are being held to a set of enforceable standards. In turn, it encourages more participation, especially from traditionally cautious demographics who may have previously sat on the sidelines. Over time, as consumer protection improves and fraudulent operators are weeded out, we expect to see broader adoption and deeper market penetration.
Luno operates as a subsidiary of Digital Currency Group with a global presence. How are you leveraging international best practices to navigate Nigeria’s evolving regulatory environment?
Being part of Digital Currency Group gives us access to a global ecosystem of crypto innovation, risk management, and compliance expertise. This has allowed us to implement robust internal controls and adopt forward-thinking operational models that are already tried and tested in more mature markets. We are constantly benchmarking against international standards—whether in cybersecurity, onboarding, or governance—and adapting those frameworks to fit Nigeria’s specific realities. This global-local balance allows us to stay ahead of regulatory expectations while bringing world-class products and experiences to Nigerian users.
What advice would you offer to entrepreneurs and emerging crypto platforms looking to build compliant, innovative businesses within Nigeria’s new regulatory framework?
First, treat regulation as a strategic asset, not a constraint. Understanding and engaging with regulators early gives you the clarity needed to build responsibly. Second, invest in strong governance from the outset. Whether it is your KYC process, your data policy, or your complaint resolution mechanism, credibility matters. Third, stay agile. The regulatory landscape will continue to evolve, and the most successful businesses will be those that can pivot without compromising core values. Lastly, build with purpose. Nigeria is filled with potential, and there is a real opportunity to create products that address local needs. Innovation rooted in trust and relevance will always find room to grow.
