Nigeria’s Financial System Needs Strong Safeguards For Digital Assets – NGX

The Nigerian Exchange Group (NGX Group) has called for strong regulatory safeguards as Nigeria moves toward integrating digital assets into its financial system, warning that innovation in the capital market must be carefully balanced with risk discipline and governance.

NGX Group Chairman, Dr Umaru Kwairanga, said the future development of Nigeria’s capital market depends on ensuring that emerging asset classes, including digital assets, are introduced within a clear and well-regulated framework that protects investors and preserves financial stability.

Speaking at the 2026 Investment Advisers and Portfolio Managers’ Conference in Lagos, Kwairanga stressed that while digital assets are reshaping global financial systems, their adoption must not encourage excessive risk-taking or weaken market safeguards.

He said: “We remain actively engaged with stakeholders to ensure that innovation, including emerging asset classes, is integrated responsibly within a well-regulated framework.”

Kwairanga noted that digital assets are increasingly playing a role in expanding capital formation opportunities and improving financial inclusion, particularly through faster, more efficient financial transactions and broader investor access to markets. However, he warned that without strong oversight, the risks associated with volatility and systemic exposure could undermine these benefits.

The NGX chairman emphasized that regulatory clarity and ethical conduct among market participants are essential to building a resilient financial ecosystem capable of supporting long-term economic growth.

His remarks come at a time when Nigeria’s digital asset landscape is facing heightened calls for clearer regulatory direction. Earlier this year, fintech operators urged the Central Bank of Nigeria (CBN) to define permissible cryptocurrency-related activities for licensed financial institutions, citing uncertainty as a major barrier to innovation and institutional participation.

According to insights from the CBN Fintech Report, digital assets have significant potential to enhance cross-border payments, deepen financial inclusion, and unlock new market opportunities. However, regulatory ambiguity continues to slow broader adoption and investment across the sector.

Kwairanga highlighted NGX Group’s ongoing efforts to modernise Nigeria’s capital market infrastructure as part of its broader transformation agenda. He pointed to NGX Invest, a digital platform that has replaced traditional paper-based public offerings with a fully digitised process, improving efficiency, transparency, and investor participation in primary market transactions.

He described investment advisers and portfolio managers as “custodians of capital,” noting that their role is central to maintaining trust, discipline, and integrity within the financial system.

Kwairanga further called for stronger collaboration among regulators, market operators, and other stakeholders to ensure that Nigeria’s financial system evolves in a way that is both innovative and resilient, particularly as digital assets become more integrated into global financial markets.