A Nigerian cryptocurrency exchange is positioning itself to eliminate barriers for international investors looking to gain exposure to the country’s equity markets. Roqqu, which operates from Nigeria, intends to tokenise domestic equities on blockchain networks, enabling qualified overseas investors to access them through digital tokens.
The initiative follows a shift in September when Nigerian investors gained easier access to the Dangote Refinery share offering, while buyers in other African markets encountered restrictions. Roqqu’s proposal inverts this dynamic: instead of offering tokenised US stocks to African investors, it will bring Nigerian shares to a global audience.
Mechanics of tokenisation
The exchange will then issue blockchain tokens representing those shares, with each token backed by an actual share in custody.
Other cryptocurrency exchanges could later distribute identical tokens, expanding access beyond Roqqu’s existing user base.
Roimot Ibitoye, the company’s chief compliance officer, confirmed that token issuance will be matched by physical shares held in custody, with regular audits to prevent overproduction. Dividends, corporate actions, and other shareholder benefits will be distributed to token holders, executives explained.
Regulatory Hurdles and Timeline Uncertainties
The company is currently collaborating with regulators, brokers, custodians, and asset managers to refine the product. While it has not disclosed institutional partners or which Nigerian stocks will be tokenised first, executives anticipate the offering will be available before 2027. However, final regulatory approval and the launch timeline remain unresolved.
Critical details about how token holdings translate into enforceable ownership rights for underlying shares have not been disclosed.
If implemented successfully, the initiative could address a persistent limitation in Nigeria’s capital markets: the low level of foreign participation. Since the beginning of 2026, their share of total trades has remained at 10.43%.
Tokenisation could position Nigerian securities before investors who typically avoid local brokerages. However, the approach faces significant obstacles. Nigerian investors already access shares through low-cost mobile applications, and a token alone would not automatically make an unregistered security legally tradable abroad. Its viability depends on offering cheaper distribution, faster settlement, or compliant access to investors that current brokers cannot serve.
Legal Rights and Cross-Border Compliance Challenges
Unlike synthetic instruments that merely track price movements, tokenised shares must grant the same rights as conventional holdings—including voting privileges, dividend entitlements, and other benefits. The US Securities and Exchange Commission’s recent five-year exemption for tokenised listed shares requires that holders retain full shareholder rights, but synthetic products do not qualify, and listed companies can oppose third-party tokenisation efforts.
Nigeria’s legal framework has evolved to address digital assets. The Investments and Securities Act (2025) explicitly subjects blockchain-based equities to securities regulation. The Nigerian Securities and Exchange Commission reduced the minimum capital requirement for tokenisation platforms to ₦500 million ($376,000) in August, though the change has not yet been formally confirmed. Meanwhile, the NASD, Nigeria’s exchange for unlisted securities, is developing a blockchain-based platform for digital securities.
Roqqu’s tokenisation plans leverage its existing infrastructure for distributing US stocks through Ondo Finance, which issues blockchain tokens linked to publicly traded companies. The firm has already shown its ability to connect investors with tokenised equities, but reversing the process—bringing Nigerian shares to global markets—introduces new legal and operational complexities. Unlike the Dangote Refinery share sale, which was registered solely in Nigeria and restricted foreign involvement, Roqqu’s approach requires compliance with securities laws across multiple jurisdictions. A Kenyan investor purchasing tokens tied to a Nigerian bank, for instance, would still need to adhere to Kenya’s securities regulations, even though the underlying shares remain registered in Nigeria.
Regulatory and operational uncertainties
The central issue is ensuring token holders receive identical rights to conventional shareholders. While Roqqu’s tokens will represent actual shares held in custody, the process for transmitting voting rights, dividends, and other benefits remains unspecified. Ibitoye noted that weekly verifications will confirm alignment between minted tokens and held shares, but the broader framework, including resolution of token redemptions or disputes, has not been detailed.
Tokenisation’s Promise vs. Liquidity Risks
The Nigerian Securities and Exchange Commission has set regulatory requirements for tokenisation platforms, initially mandating a minimum capital of ₦1 billion ($703,000) for real-world asset tokenisation and ₦2 billion ($1.5 million) for digital asset exchanges.
Market liquidity and structural challenges
Liquidity remains a key uncertainty. For example, if a share last traded at ₦100 ($0.075) but a nighttime buyer offers only ₦90 ($0.068), investors face a choice: accept a loss or wait for market reopening. Roqqu has not specified who will provide liquidity during off-hours or how redemptions will be executed. A European Central Bank report from April warned that distributed ledgers could only mitigate illiquidity if they attract more participants, not if they operate in isolation from traditional markets.
