Crypto regain access to Nigeria’s formal banking network

Nigerian crypto exchanges have now reconnected to the formal banking system, one year after receiving regulatory recognition. In a chat with Nairametrics, Moyo Sodipo, Chief Operating Officer of Busha, confirmed the development, describing it as a turning point for an industry that was initially operating in the shadows. In August 2024, Nigeria’s Securities and Exchange Commission (SEC) granted an Approval-in-Principle to two crypto exchanges Quidax and Busha, giving them the status of legally recognised crypto trading platforms in the country. Sodipo reflected on the past year as a transformative period for crypto operators in Nigeria. “I would say it’s been a year of learning. It’s been a year of collaboration. It’s been a year of understanding as well,” he said.  What has changed? The first thing I’ll say has changed is finally we are able to once again access the formal banking network in Nigeria.” 
Sodipo explained that prior to the Central Bank of Nigeria’s (CBN) 2021 directive restricting financial institutions from servicing crypto-related entities, exchanges operated with bank accounts and direct access to payment infrastructure. That changed abruptly, forcing platforms to rely on peer-to-peer (P2P) models and workaround solutions. However, following the Securities and Exchange Commission’s (SEC) issuance of Approvals-in-Principle to Busha and Quidax in August 2024, the tide has turned.
“After the licensing last year, we’re now seeing the green light again where banking institutions, financial institutions that were somewhat scared in the past of working with us are now happy to welcome us into their offices again,” Sodipo said. The SEC’s move to grant preliminary approval to Busha and Quidax marked a significant step toward formalizing crypto trading in Nigeria. While the Approvals-in-Principle are precursors to full registration, they confer legal status on the platforms and signal regulatory intent to integrate digital assets into the broader financial system.
The Commission emphasized that the recognition was in response to persistent calls from stakeholders for clearer guidelines and oversight of crypto activities. The approvals have since catalyzed renewed engagement between crypto firms and traditional financial institutions. Sodipo noted that the restored banking access allows exchanges to operate openly and educate the public. “We no longer have to be in the shadows. We no longer need to be using P2P or different innovative models to walk around the roadblock that the restriction caused. Now we’re able to come out with our full chest and provide crypto and digital asset services to Nigerians.” 
Industry analysts view the development as a critical step toward building trust, improving compliance, and expanding financial inclusion through digital assets. It would be recalled that the SEC introduced the Accelerated Regulatory Incubation Program (ARIP) to strategically on-board firms that had commenced operations prior to the release of the Rules on Virtual Asset Service Providers in May 2022. Conversely, the Regulatory Incubation (RI) Program was created to assess the business models of Digital Assets firms and test innovative products, services, and technology in a real-time market environment under close supervision by the SEC. The SEC said the first set of companies approved are to test its regulatory model, adding that the outcome of the process would inform further policy development in the crypto space in Nigeria.