Nigeria Approves Tokenized Shares & Bonds for Trading

SEC Green-Lights Digital Securities on NASD

The Securities and Exchange Commission (SEC) has approved the NASD OTC Securities Exchange to list and trade tokenized shares and bonds. The announcement came directly from the exchange on Tuesday.

The platform targets a specific problem: capital access for small and medium-sized enterprises. According to a May study by Stears cited by the exchange, only about 4% of Nigeria’s estimated 40 million micro, small, and medium-sized enterprises access formal bank credit. Digital securities now offer what Chinwendu Ekeh, NASD’s Acting CEO, calls a faster, lower-cost and credible pathway to market financing.

How Tokenized Trading Works

Shares and bonds will exist as digital tokens recorded on a blockchain rather than in conventional shareholder registries. Canadian technology company Blockstation will provide the underlying infrastructure, handling issuance, trading, clearing, and settlement.

The system delivers two concrete advantages:

• Lower barriers to entry: Investors can purchase fractional ownership, reducing the capital required to invest
• Speed: Ownership transfers happen near-instantaneously, bypassing the multi-day settlement processes of traditional markets

Licensed brokers will continue executing all orders under SEC supervision, maintaining regulatory oversight throughout the trading process.

Nigeria’s Digital Finance Strategy

This approval reflects Nigeria’s broader commitment to digital finance innovation. The Securities and Investments Act, enacted in March 2025, strengthened the legal framework for virtual assets and confirmed the SEC‘s authority over digital assets within capital markets.

President Bola Tinubu established a Virtual Assets Council chaired by the Central Bank of Nigeria to coordinate regulatory oversight across agencies. The strategy aligns with Nigeria’s demographics: over 60% of the population is under 30 years old, a cohort comfortable with digital-first financial services.

Africa’s Tokenization Race Accelerates

Nigeria isn’t alone in this move. Other African exchanges are rapidly exploring tokenization. The Nairobi Securities Exchange, with a market capitalization of $26.4 billion, partnered with Tether in late July to test tokenization and instant settlement.

The West African Economic and Monetary Union is still developing its regulatory framework, but the Central Bank of West African States held discussions in May involving regulators, bankers, and academics about blockchain integration.

Market Growth and First Launch

NASD itself is demonstrating momentum. Its market capitalization more than doubled in 2025, growing from 1.03 trillion naira to 2.12 trillion naira (approximately $1.56 billion). The exchange currently lists 46 securities.

The first public offering of digital securities launches in early September. As Ekeh framed it: We see this less as a destination than as the beginning of a new era of capital formation.

For Nigerian SMEs shut out of traditional banking, tokenized markets represent a genuine alternative to corporate debt and equity funding. The timing and regulatory clarity position Nigeria as a test case for how African exchanges can modernize capital access.