The Central Bank of Nigeria (CBN) has selected Flutterwave, Paystack, and Juicyway for a new pilot programme (PDF) aimed at strengthening compliance in Nigeria’s evolving virtual asset ecosystem. Other participants include KuCoin, KoinKoin, and cNGN.
According to the CBN, the pilot is “designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities.” The initiative signals a more structured regulatory approach to digital assets, as Nigeria continues to grapple with rising adoption and associated risks.
As part of the programme, the selected companies will receive support in strengthening their anti-money laundering, counter-terrorism financing, and counter-proliferation financing (AML/CFT/CPF) frameworks. This includes aligning with global standards such as Recommendations 15 and 16 of the Financial Action Task Force (FATF), which focus on managing risks from new technologies and ensuring transparency in digital transactions.
The CBN noted that this pilot is the first in a series of similar regulatory engagements, although participation is currently limited and not open to external applications. During the pilot, companies will undergo supervisory engagements with both the apex bank and the Nigerian Financial Intelligence Unit (NFIU), where necessary.
These engagements will include detailed reviews of key operational areas such as customer onboarding processes, governance structures, transaction monitoring systems, and cross-border activities. Despite the level of oversight, the CBN clarified that participation in the pilot does not amount to regulatory approval or licensing.
Nigeria’s relationship with virtual assets has evolved significantly in recent years. While the CBN previously imposed restrictions on cryptocurrency-related activities within the banking system, adoption has persisted, with users turning to alternative channels. In contrast, the Securities and Exchange Commission Nigeria (SEC) has taken a more accommodating stance, introducing frameworks aimed at regulating digital assets.
This pilot may mark a shift toward more coordinated oversight between regulators, as authorities seek to balance innovation with financial system integrity.
