The Nigerian Exchange Group (NGX Group) has urged the implementation of strong regulatory safeguards to guide the integration of digital assets into Nigeria's financial system. NGX Group Chairman, Dr Umaru Kwairanga, emphasized the need to balance innovation with risk discipline and governance, stating that emerging asset classes must be introduced within a clear, well-regulated framework. Speaking at the 2026 Investment Advisers and Portfolio Managers' Conference in Lagos, Kwairanga warned that digital assets, while transformative, could encourage excessive risk-taking if oversight is weak. 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 acknowledged that digital assets can expand capital formation and improve financial inclusion through faster transactions and broader market access. However, he stressed that volatility and systemic risks could erode these benefits without strong supervision. Regulatory clarity and ethical conduct among market participants are critical to building a resilient financial ecosystem, he added. His remarks follow growing calls from fintech operators for the Central Bank of Nigeria (CBN) to define allowable cryptocurrency-related activities for licensed institutions, citing uncertainty as a barrier to innovation. The CBN Fintech Report notes digital assets can enhance cross-border payments and unlock new market opportunities, but regulatory ambiguity continues to slow adoption. Kwairanga highlighted NGX Invest, a digital platform replacing paper-based public offerings, as part of efforts to modernize capital market infrastructure. He described investment advisers and portfolio managers as "custodians of capital," central to maintaining trust and integrity in the financial system.
Dr Umaru Kwairanga calls for strict oversight of digital assets while NGX itself rolls out a fully digitised platform, raising questions about how much self-regulation the exchange expects to manage. The same clarity demanded from the CBN for fintechs is yet to be mirrored in how NGX's own digital systems are governed. If digital transformation is inevitable, investors deserve to know how risks on platforms like NGX Invest are being policed in real time. Without transparent accountability, even well-meaning reforms risk becoming exercises in selective scrutiny.
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