SEC moves to cap retail crypto investments at N1 million per issuer, N10 million yearly

The Securities and Exchange Commission (SEC) has proposed limits on how much retail investors can put into digital asset offerings, with a N1 million cap per issuer and a N10 million aggregate limit over 12 months. The proposal is contained in the SEC's Draft Rules on Digital and Virtual Asset Operations, Custody and Markets.

The move is aimed at strengthening investor protection as Nigeria builds a formal regulatory framework for digital assets.

Proposed investment limits

The SEC proposed that a retail investor shall not invest more than N1,000,000 per issuer and N10,000,000 in aggregate across digital asset offerings within any twelve-month period.

Where a retail investor wants to invest more than N1 million or 5% of their net worth, whichever is higher, the Digital Asset Offering Platform must take extra steps before accepting the investment. These include displaying a prominent risk warning, getting the investor's express consent, confirming that the investor understands the nature and material risks of the investment, and assessing whether the investment is suitable based on the investor's knowledge, experience, financial circumstances and ability to bear losses.

Platforms will also be required to put in place systems and controls to monitor and enforce the limits. This covers investor categorisation, risk acknowledgement, net-worth declarations or assessments, and aggregation of investments made across their platforms.

Institutional investors, qualified investors, high-net-worth investors and other categories recognised by the Commission may be exempted from the proposed limits.

Wider regulatory push

Nigeria has been expanding its digital asset rulebook. In January 2026, the SEC raised the minimum capital requirement for digital asset exchanges from N500 million to N2 billion, giving affected firms until June 30, 2027, to comply.

In July, President Bola Tinubu signed the Virtual Assets Coordination Executive Order, creating a CBN-led Virtual Asset Council to coordinate oversight among the CBN, SEC, Nigeria Revenue Service and other government agencies.

Also in July, the SEC admitted seven additional companies into its Accelerated Regulatory Incubation Programme (ARIP), expanding the number of digital asset firms operating within its regulatory sandbox. This followed the SEC's earlier approval-in-principle for Quidax and Busha in 2024.

Earlier this month, the Nigeria Revenue Service issued guidelines for taxing virtual assets, requiring participants in the sector to comply with tax registration, reporting and other obligations. The guidelines covered cryptocurrency trading, staking, mining, DeFi rewards, airdrops and stablecoins.

What it means for the market

Nigeria is one of the largest and most active crypto markets in Africa. Nairametrics reported in July that Nigeria recorded $92.7 billion in on-chain crypto activity over 12 months, the largest in Sub-Saharan Africa. Retail transactions accounted for about $57 billion, with a significant portion linked to cross-border payments for goods and services.

The report also estimated that about 26.3 million Nigerians, nearly a quarter of the adult population, regularly hold or transact with digital assets.

The latest SEC proposal shifts focus from regulating operators to protecting retail investors directly. For consumers, the new caps mean clearer boundaries on exposure, but platforms will need to tighten their systems to track investor activity across the market.