Nigeria's Securities and Exchange Commission (SEC) has expanded its regulatory sandbox, admitting seven new fintech companies into its Accelerated Regulatory Incubation Programme (ARIP). This development marks the first new cohort since August 2024, signaling a significant step forward in the country's efforts to formalize its digital asset sector. The newly approved firms include Bitbarter Technologies, Luno Fintech Nigeria, GetEquity, Koinkoin Global Network, Wrapped CBDC, Trovotech, and Blockvault Custodian.
A Renewed Push for Regulatory Clarity
The ARIP is a specialized environment designed to fast-track the onboarding of digital asset providers under controlled supervision. Admitted firms receive an Approval-in-Principle (AIP), which is not a full operational license but confirms they have met the SEC's initial requirements. This provisional status allows them to operate within the program's defined scope, subject to continued compliance with all regulatory and supervisory obligations.
This recent approval is particularly noteworthy as it breaks a nearly two-year pause on new admissions into the program. Previously, only two firms, Busha and Quidax, had received AIPs to operate as digital asset exchanges. The inclusion of this new group suggests the SEC is reopening its pipeline, fostering a more structured pathway for innovative firms to enter the market under regulatory watch.
Navigating a Stricter Regulatory Landscape
The expansion of the sandbox comes against a backdrop of tightening regulations within Nigeria's financial sector. In January 2026, the SEC increased the minimum capital requirement for digital asset exchanges and custodians from ₦500 million to ₦2 billion. This move raised concerns that it could create significant barriers for smaller, early-stage companies attempting to enter the market.
Despite the higher capital bar, the admission of these seven firms indicates the regulator's continued commitment to supporting innovation. Notably, three of the companies, Trovotech, Wrapped CBDC, and Blockvault Custodian, are graduating from the SEC's related Regulatory Incubation (RI) track into the ARIP. This progression highlights a structured and maturing framework for guiding digital asset businesses from testing to supervised operations.
Industry Reaction and Future Outlook
The announcement was met with positive reactions from the industry, with Luno Nigeria describing the approval as a crucial milestone. Ayotunde Alabi, the company's CEO, stated that the AIP validates its commitment to responsible growth in one of Africa's most important cryptocurrency markets. This regulatory clarity is expected to strengthen engagement with both customers and institutional partners.
With the provisional approval, Luno intends to expand its services, particularly for institutional and business-to-business clients. The company plans to enhance its offerings in digital asset infrastructure, stablecoin applications, treasury solutions, and crypto-as-a-service products. This move underscores how regulatory certainty can unlock further investment and product development within the ecosystem, benefiting a wider range of financial players.
Ultimately, the SEC's decision to welcome a new cohort into its regulatory sandbox represents a pivotal moment for Nigeria's digital economy. By balancing the encouragement of technological advancement with robust investor protection, the commission is paving the way for a more transparent and stable market. This initiative is a clear indicator of progress towards establishing a comprehensive and sustainable regulatory framework for virtual assets in the country.