The Nigerian Securities and Exchange Commission (SEC) has officially greenlit the issuance of tokenized assets, marking a significant shift in the country's financial landscape. This regulatory milestone aims to modernize the capital market and provide new avenues for investment within Africa’s largest economy. Following this approval, the NASD PLC, an alternative investment trading platform, has announced plans to launch its tokenized securities service as early as September 2026.
Strategic Partnership and Infrastructure
To facilitate this technological transition, the SEC and NASD have collaborated with Blockstation Inc., a Canadian-based provider of blockchain solutions. This partnership will provide the necessary digital infrastructure to enable the near real-time listing and trading of tokenized securities. By leveraging blockchain technology, the exchange seeks to streamline settlement processes and enhance transparency for both domestic and international investors.
The integration of blockchain technology is expected to provide:
- Increased liquidity for historically illiquid assets.
- Reduced administrative costs for issuers and broker-dealers.
- Enhanced security through immutable distributed ledgers.
Empowering Small and Medium Enterprises
A primary objective of this initiative is to support Small and Medium Enterprises (SMEs) that often face barriers when seeking traditional financing. Chinwendu Ekeh, Acting Managing Director of NASD, emphasized that many businesses struggle to access bank credit or meet the rigorous requirements of conventional capital markets. Tokenization offers these entities a decentralized alternative for raising capital.
Digital securities offer a "faster, cheaper, and more reliable path" to meet the needs of Nigerian SMEs that have difficulty accessing bank credit and traditional capital market financing.
The adoption of Real World Asset (RWA) tokenization is projected to bridge the funding gap for local entrepreneurs. By converting physical or financial assets into digital tokens on a blockchain, companies can reach a broader pool of investors with lower entry thresholds.
As Nigeria continues to refine its regulatory framework for digital assets, the move toward tokenization reflects a broader global trend of integrating DLT (Distributed Ledger Technology) into regulated financial systems. This development is expected to position Nigeria as a regional leader in fintech innovation, potentially attracting increased foreign direct investment into its digital economy.
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