Nigeria Approves Tokenized Shares for Its Over-the-Counter Market

A New Way to Raise Money

Running a small business in Nigeria can feel like building with one hand tied.

Bank loans are hard to get, and the stock market often seems designed for companies that are already big.

Between those two doors, a lot of good ideas have no clear path to money.

Now a third door is opening. Nigeria's Securities and Exchange Commission has cleared the NASD OTC Securities Exchange, the country's over-the-counter market, to let companies offer tokenized assets.

Over-the-counter simply means trades happen directly between buyers and sellers instead of through a central exchange.

The exchange also handles alternative investments, so a new digital asset market fits here.

To tokenize an asset, you take something you can own, like a share or a bond, and turn it into a digital token on a blockchain. Blockchain is the technology behind cryptocurrencies.

The token stands for actual ownership. Investors can trade it much faster and with less paperwork than a traditional share.

A Launch Date Years in the Making

NASD says the new service goes live early next month.

The launch date has a long run-up behind it. Back in 2023, Nigeria's regulator gave NASD the go-ahead to build digital tokens tied to real assets.

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Since then, the exchange has worked with Blockstation Inc., a Canadian company.

Its blockchain infrastructure supports listings and almost real-time trading of tokenized securities, according to NASD acting Managing Director Chinwendu Ekeh.

The timing lines up with Nigeria's population. More than 60% of the country's people are under 30.

That is a huge group of people who have grown up with phones and digital money.

Capital markets are the places where stocks and bonds are bought and sold. Opening those markets to that group is the point.

South Africa, Kenya, and Ghana have also been expanding their blockchain and digital-asset efforts. Nigeria is not alone in this shift.

Small Businesses Are the Focus

The companies NASD is targeting are small and medium-sized Nigerian businesses. They often struggle to get bank credit, and traditional capital markets are out of reach.

Ekeh described digital securities as "a faster, lower-cost, credible path" for these firms to raise money.

The same setup goes way beyond shares. NASD says it could handle tokenized bonds, real estate, private-market instruments, structured investments, and similar assets.

Ekeh made it clear this is an early step, not a finish line.

"We see this less as a destination and more as the beginning of a new era in capital formation," she said.

What It Means for Investors

For investors, the appeal is access. If small companies can raise money more easily, they become easier to buy into.

Tokenized shares use the same technology as cryptocurrencies. That keeps costs down and speeds up settlement.

None of that matters if the underlying business is weak. There is real risk in a market this new.

Regulators are still writing the rules, and early users are testing what works. The approval itself shows where the country is heading.

Every investment still comes down to whether the business behind it can make money. The blockchain only changes how easy it is to buy and sell the stake.

For the small businesses that need funding and the investors who want to own a piece of them, that is an opening worth watching.

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