The Chairman of the Nigerian Exchange Group, Nigerian Exchange Group, has called for a structured and balanced approach to adopting digital assets in Nigeria, stressing the need to combine innovation with strong regulation.
Speaking at the 2026 Investment Advisers and Portfolio Managers’ Conference in Lagos, NGX Chairman Umaru Kwairanga explained that the growth of digital finance must not come at the cost of market stability. He warned that while new technologies are expanding opportunities, they also introduce risks that must be carefully managed.
According to him, capital market development should be guided by discipline and proper oversight. He emphasised that innovation alone is not enough, and that safeguards are necessary to protect investors and ensure long term sustainability of the financial system.
Kwairanga stated that digital assets are already reshaping how financial systems operate by opening new channels for raising capital and improving access to financial services. However, he made it clear that these benefits can only be realised if the ecosystem is properly regulated.
He said, “We remain actively engaged with stakeholders to ensure that innovation, including emerging asset classes, is integrated responsibly within a well regulated framework.”
The NGX chairman added that responsible adoption of digital assets will be important in building a resilient financial system. He stressed that market participants must uphold strong ethical standards while regulators provide clear rules to guide activities in the sector.
He also pointed out that uncertainty around regulations has slowed the growth of digital assets in Nigeria. Many fintech operators have previously called on the Central Bank of Nigeria to clearly define what is allowed in cryptocurrency related activities, as ambiguity discourages investment and innovation.
Despite these challenges, Kwairanga noted that digital assets have strong potential to improve cross border payments, deepen financial inclusion, and unlock new investment opportunities. He argued that achieving these benefits will depend on collaboration between regulators, market operators, and investors.
As part of broader reforms, he highlighted efforts by the NGX to modernise its infrastructure. One example is NGX Invest, a platform designed to digitise primary market processes and replace manual systems. This has improved access for investors and increased participation in the capital market.
Kwairanga described investment advisers and portfolio managers as “custodians of capital,” noting that their role is critical in maintaining trust and integrity in the financial system. He urged them to act responsibly and support reforms that promote transparency and stability.
Meanwhile, regulators are already tightening oversight of the sector. The Securities and Exchange Commission recently introduced stricter requirements for cryptocurrency exchanges, including higher capital thresholds and compliance deadlines.
Overall, the message from the NGX chairman is clear: Nigeria must embrace digital assets, but with caution. A balanced framework that combines innovation with regulation will be essential to building a strong, inclusive, and future ready financial market.
