Welcome to the January regulatory round up 2025. We provide you with the latest regulatory news and insights across Nigeria, Africa and beyond. Let’s dive into a thoughtful and comprehensive update on recent developments.
Regulatory Update in Nigeria
- Nigeria’s central bank launches digital payment service for government agencies
- Nigeria’s SEC Enhances Borrowing Framework Amid Supreme Court Subvention Ruling
- CBN Unveils Non-Resident Nigerian Accounts to Drive Diaspora Investments
- CBN addresses illegal reductions from bank customers
- BVN Now Mandatory for RSA Holders Starting February
- Launch of the Nigerian foreign exchange (FX) code
- SEC Warns Capital Market Operators of Penalties for Non-Renewal of Registration
Across Africa: Welcoming Innovation While Addressing Challenges
- Kenya orders social media companies to establish physical offices in the country
- Kenya moves to Regulate Cryptocurrencies with Draft Legislation
- Fintechs to Gain Easier Access Between Ghana And Rwanda With New Passport System
- Kenya eases travel requirements for nearly all African visitors
- SEC alerts the General Public on Risevest Technology Limited
- Challenge to the ODPC Jurisdiction in Kenya
- Kenya’s VASP Bill 2025
Across the World
- EU PSPs brace for first Instant Payments Regulation implementation deadline
- Central Bank of Oman approves regulatory framework for open banking
- UK’s Payment Systems Regulator Unveils Updated Strategy
- SEC Charges Digital Currency Group for Misleading Investors
- Australia Mandates Credit Licences ahead of New Regulations
Crypto Scoop
- Trump’s executive order propels US leadership in crypto
- Setback for the Crypto World as MiCA Laws Impact Tether (USDT)
Mergers and Acquisitions
- CFIT aims to help SMEs secure financing with new coalition featuring Mastercard and Lloyds Bank
- SBI Holdings reportedly set to acquire majority stake in Solaris as part of new funding round
- MoonPay acquires Helio to enhance crypto payment services
- Nigeria’s Recapitalisation Policy paves the way for Potential Mergers
- Lemfi expands into Ireland through acquisition of Buttercrane
Deals and Raises
GTCO Plc announces successful completion of the 1st phase of its equity capital raise programme: raises N209 Billion
Regulatory Update in Nigeria
Nigeria’s central bank launches digital payment service for government agencies
The Central Bank of Nigeria (CBN) has introduced a new naira payment solution and digital document management system, DocFlow, to streamline financial transactions and boost payment turnaround times by 70% for MDAs. This initiative, part of the “Digital First” transformation project, aims to enhance operational efficiency, reduce errors, and combat fraud within the public sector.
Nigeria’s SEC Enhances Borrowing Framework Amid Supreme Court Subvention Ruling
The Securities and Exchange Commission (SEC) of Nigeria has introduced measures to strengthen the regulatory framework for government and corporate borrowing, aiming to improve financial sustainability. This follows a Supreme Court ruling mandating direct disbursement of federal subventions to Nigeria’s 774 local government areas. The framework focuses on strategic resource management to support developmental initiatives, with the direct subventions expected to drive significant progress in grassroots development projects.
Nigeria: CBN Unveils Non-Resident Nigerian Accounts to Drive Diaspora Investments
The Central Bank of Nigeria (CBN) has introduced two specialized accounts to boost diaspora investments and financial management for Non-Resident Nigerians (NRNs). Starting 1 January, NRNs can open the Non-Resident Nigerian Ordinary Account (NRNOA) for remitting foreign earnings and managing funds in foreign and local currencies, and the Non-Resident Nigerian Investment Account (NRNIA) for investing in Nigerian assets like government securities, equities, and diaspora bonds. These accounts aim to promote economic inclusion by offering secure, transparent, and efficient fund management while reducing reliance on intermediaries.
CBN addresses illegal reductions from bank customers
The CBN recovered ₦7.05 billion and $714,569.03 for bank customers in eight months, resolving over 15,000 complaints, mostly related to unauthorized deductions. Growing concerns over these practices led the House of Representatives to propose an amendment to the Banking and Other Financial Institutions Act in October 2024, aiming to enhance consumer protection. This reinforces the need for financial institutions to adopt transparent and compliant pricing models.
BVN Now Mandatory for RSA Holders Starting February
Starting 1 February , the National Pension Commission (PenCom) will require Bank Verification Numbers (BVNs) for all Retirement Savings Account (RSA) registration and data recapture processes. Pension Fund Administrators must ensure BVNs provided are valid, make it mandatory for new RSA registrations, include it on registration forms, collect BVNs from existing RSA holders during data recapture exercises, and update the Enhanced Contributor Registration System (ECRS) accordingly.
Launch of the Nigerian foreign exchange (FX) code
Nigeria’s new FX Code brings significant regulatory changes that directly impact Bureau De Change (BDCs) operators and other market participants. Beyond its optimistic framing, the focus should be on compliance planning to ensure stakeholders align with the code’s requirements. Notably, the FX code introduces a new standard that reshapes FX operations, emphasizing transparency, risk management, and regulatory oversight. Affected entities must now assess their processes and implement necessary adjustments to stay compliant and operational within the evolving FX landscape.
SEC Warns Capital Market Operators of Penalties for Non-Renewal of Registration
The Securities and Exchange Commission (SEC) has issued a warning to capital market operators (CMOs) to renew their registration for 2025 by January 31 or face stringent penalties, including exclusion from market activities. This follows circulars requiring an electronic registration. A functional compliance strategy including setting up an obligations register to manage timelines will help forestall potential penalties in this regard.
Across Africa: Welcoming Innovation While Addressing Challenges
Kenya orders social media companies to establish physical offices in the country
Kenya now requires all social media companies operating in the country to set up local offices to enhance accountability and curb online misconduct. The mandate applies to major platforms like Meta, X, TikTok, YouTube, and LinkedIn, ensuring compliance from both telecom providers and platform owners.
Kenya Moves to Regulate Cryptocurrencies with Draft Legislation
The Kenyan Treasury is drafting a comprehensive legislative proposal to regulate cryptocurrencies, marking a shift from the Central Bank of Kenya’s previous cautionary stance. The government aims to establish a legal framework for digital assets, balancing innovation with risk management.
Fintechs to Gain Easier Access Between Ghana And Rwanda With New Passport System
Ghana and Rwanda are introducing a license passporting system to enhance cross-border fintech operations. This initiative will enable fintech companies licensed in one country to swiftly enter the market in the other, easing expansion and minimizing regulatory hurdles. Under this framework, fintech firms can operate in both countries without undergoing a full licensing process for each. Instead, they will utilize their existing license and provide only additional required details for approval in the second jurisdiction. This approach is set to significantly cut down the time and costs involved in cross-border expansion.
Kenya eases travel requirements for nearly all African visitors
Kenya has announced that citizens from most African countries can now visit without prior authorization, following a new cabinet directive. The Electronic Travel Authorization (ETA), which had replaced traditional visa requirements, was previously criticized as a “visa under another name. ”Under the revised system, travelers from the majority of African nations can enter Kenya without an ETA and stay for up to two months. Meanwhile, citizens of East African Community member states—Uganda, Tanzania, Rwanda, and Burundi—can remain for up to six months, in line with the bloc’s regulations.
SEC alerts the General Public on Risevest Technology Limited
The SEC has notified the entire public that Risevest Technologies Limited is not Registered by it to operate in any capacity in the Nigerian Capital Market. This should come as a notice to other businesses out there that transacting in the Nigerian Capital Market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment. S a reminder, the investing public is therefore reminded about the need to confirm the status of companies and entities offering investment opportunities on the CAC’s portal.
Challenge to the ODPC Jurisdiction in Kenya
The High Court of Kenya has certified as urgent a petition challenging the authority of the Office of the Data Protection Commissioner (ODPC) to handle privacy rights cases. A Nairobi-based lawyer argues that the ODPC has unlawfully assumed powers meant for the High Court under Kenya’s Constitution and claims that the commissioner’s ability to investigate and issue binding decisions on privacy matters is unconstitutional and effectively amends the Constitution, violating Article 255(1)(e). The lawyer is requesting a ruling on whether the ODPC functions as a subordinate court or tribunal and if it has exceeded its jurisdiction by adjudicating cases that should be handled by the judiciary.
Kenya’s VASP Bill 2025
Kenya is at a critical juncture as it looks to shape its digital asset economy with the recent public participation on the Virtual Asset and Virtual Asset Service Providers (VASP) Bill 2025 sparking intense debate, particularly over the proposed 3 per cent Digital Asset Tax (DAT). While regulators argue that the bill will bring much-needed clarity to the industry, stakeholders are concerned that the tax could hinder innovation and deter investment.
Across the World
EU PSPs brace for first Instant Payments Regulation implementation deadline
Starting January 9, payment service providers (PSPs) in euro area member states must support instant credit transfers, ensuring funds are credited to payees’ accounts within 10 seconds. According to the European Central Bank, charges for instant transfers cannot exceed those for standard credit transfers. This change eliminates delays, allowing customers faster access to their money.
Central Bank of Oman approves regulatory framework for open banking
The Central Bank of Oman (CBO) has approved its regulatory framework for open banking as part of its “modern financial technology roadmap.” This framework aims to foster innovation, enhance financial system efficiency, and provide consumers with greater control over their financial data. Developed in July 2024 and refined with stakeholder feedback, the initiative aligns Oman with global trends, joining central banks like the Bank of Namibia in embracing open banking to support innovative financial products.
UK’s Payment Systems Regulator Unveils Updated Strategy
The UK’s Payment Systems Regulator (PSR) has updated its five-year strategy, launched in 2022, to enhance user protection and competition. At the midpoint, key achievements include APP fraud protections, Open Banking progress, and a card fee review. The next phase focuses on completing ongoing initiatives, upgrading Faster Payments, reforming Pay.UK, and driving competition and innovation for economic growth.
SEC Charges Digital Currency Group for Misleading Investors
The U.S. Securities and Exchange Commission (SEC) has charged Digital Currency Group (DCG) and former Genesis CEO Soichoro “Michael” Moro for allegedly misleading investors about Genesis’ financial stability after the collapse of Three Arrows Capital (3AC).
Australia Mandates Credit Licences ahead of New Regulations
Starting June 2025, BNPL providers in Australia must obtain credit licenses under new legislation recognizing BNPL (Buy now, Pay later) This framework enhances oversight while acknowledging BNPL’s lower risk compared to traditional credit. The Australian Securities and Investments Commission (ASIC) has mandated providers to apply for a license, secure lodgement approval, and join the Australian Financial Complaints Authority (AFCA) by June 10, 2025.
Crypto Scoop
Trump’s executive order propels US leadership in crypto
Former President Donald Trump has signed an executive order reinforcing the U.S. as a global leader in cryptocurrency and AI. The order bans central bank digital currencies (CBDCs) and establishes a working group to create clear crypto regulations. It aims to foster innovation, reduce regulatory uncertainty, and protect individual financial sovereignty.
Setback for the Crypto World as MiCA Laws Impact Tether (USDT)
The EU’s MiCA regulation banning USDT has forced major exchanges to delist the stablecoin, raising questions about the practicality of requiring asset issuers to register separately in each region. While the EU has the market influence to enforce strict compliance, smaller jurisdictions may lack the scale to do so effectively. A mutual recognition framework could offer a more practical approach, balancing regulatory oversight with market efficiency.
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