The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have introduced a wave of regulatory measures that are drawing both praise and sharp criticism from fintech operators, as the compliance burden on digital financial services firms continues to mount.
Industry experts interviewed by Nairametrics expressed divergent views on the new frameworks, which cover capital requirements for digital asset operators, mandatory disclosure of Ultimate Beneficial Owners (UBOs), and data localization rules for payment transaction data.
**SEC raises capital thresholds for digital asset firms**
Earlier this year, SEC issued a circular mandating higher minimum capital requirements for digital asset operators, with compliance deadlines set for 2027. Digital Asset Exchanges (DAXs) must increase their minimum capital from **N500 million to N2 billion** by June 2027. Digital Asset Custodians face the same N2 billion minimum, while Digital Asset Offering Platforms and Real-World Asset Tokenization and Offering Platforms must hold at least N1 billion each.
Smaller operators face thresholds of N500 million for Digital Asset Platform Operators and Digital Asset Intermediaries, and N300 million for Ancillary Virtual Asset Service Providers.
**CBN tightens ownership transparency and data rules**
The CBN has also issued a June 2026 circular requiring financial institutions — including deposit money banks, payment service providers, and mobile money operators — to identify, verify, and disclose their UBOs. Firms must reveal the natural persons who ultimately own or control their businesses, even where ownership is masked through offshore holding structures, investment funds, or trusts.
In a parallel move, the apex bank has directed all regulated entities to store payment transaction data generated in Nigeria on local servers, with full compliance required by January 1, 2027. The data localization policy is designed to improve regulatory visibility and reduce operational concentration risks.
