By 
By Osasome, C. O
Nigeria moves to regulate crypto economy as Tinubu creates virtual asset council
President Bola Ahmed Tinubu has taken one of Nigeria’s most significant policy steps toward regulating the country’s rapidly expanding digital assets ecosystem, signing the Presidential Executive Order on Virtual Assets Coordination, 2026.
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The landmark directive, which takes immediate effect, establishes a coordinated national framework for regulating cryptocurrencies, blockchain-based financial services and other virtual assets, while positioning Nigeria to capture greater economic value from one of the world’s fastest-growing digital sectors.
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The Executive Order seeks to harmonise oversight across financial, revenue, security and capital market regulators, closing longstanding regulatory gaps that have enabled fraud, financial crimes and tax leakages, while creating a more predictable environment for innovation and investment.
Issued pursuant to Section 5 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), the Order was announced in a statement by the President’s Adviser on Information and Strategy, Bayo Onanuga.
The development marks another major milestone in the Federal Government’s drive to build a trusted digital economy capable of supporting financial innovation without compromising national security, consumer protection or fiscal transparency.
Why Nigeria Needed a Unified Virtual Assets Framework
Nigeria has emerged as one of Africa’s largest digital asset markets, with millions of young people, businesses and fintech innovators actively using cryptocurrencies, tokenised assets and blockchain applications for payments, investments, remittances and cross-border transactions.
Yet regulatory oversight has remained fragmented.
Different government agencies have exercised overlapping responsibilities, while significant gaps allowed unregistered operators to flourish. These weaknesses exposed Nigerians to investment scams, money laundering, terrorism financing, cybersecurity threats, identity theft, data privacy violations and substantial revenue losses.
The new Executive Order seeks to eliminate these institutional blind spots by fostering coordination rather than creating another layer of bureaucracy.
Instead of replacing existing regulators, it aligns their activities under a common national framework that enables faster information sharing, stronger supervision and more consistent policy implementation.
Virtual Asset Council to Coordinate National Oversight
At the centre of the new governance architecture is the establishment of the Virtual Asset Council, which will provide strategic direction for Nigeria’s digital assets ecosystem.
The Council will be chaired by the Central Bank of Nigeria (CBN), with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice-chairpersons.
Other members include:
- Nigerian Financial Intelligence Unit (NFIU)
- Office of the National Security Adviser (ONSA)
Working closely with the Attorney-General of the Federation, the Council will coordinate policy, resolve regulatory overlaps and develop a harmonised legal and institutional framework that aligns virtual asset regulation with Nigeria’s broader economic, financial and national security priorities.
Supporting the Council is a newly established Virtual Asset Office, headquartered at the CBN, which will serve as its operational secretariat.
The office will coordinate information sharing, regulatory reporting, licensing workflows and inter-agency collaboration through an integrated supervisory technology platform, while allowing each participating institution to retain ownership and control of its respective data.
No New Regulator, But Greater Regulatory Certainty
One of the defining features of the Executive Order is that it does not create another regulatory agency.
Instead, it preserves the statutory powers of existing institutions while clearly defining their respective responsibilities.
Under the framework:
- The SEC will continue regulating virtual assets that qualify as securities.
- The CBN will supervise payment systems, settlement services, custody and other non-security virtual asset activities.
- The Virtual Asset Council will determine jurisdiction whenever regulatory boundaries overlap.
The approach provides greater certainty for operators while eliminating loopholes previously exploited by unlicensed digital asset providers.
For investors and businesses alike, the framework offers clearer rules of engagement and a more predictable compliance environment.
CBN Sandbox to Encourage Responsible Innovation
Recognising that innovation should not be stifled by regulation, the Executive Order also supports the Central Bank’s planned Virtual Assets Regulatory Sandbox.
The sandbox will allow qualified fintech firms, blockchain developers and digital asset companies to test new products and services within a closely supervised environment before full commercial deployment.
The initiative will enable regulators to assess potential implications for:
- Financial stability
- Consumer protection
- Monetary policy
- Market integrity
- Financial inclusion
- Revenue administration
- National security
By testing innovations before large-scale rollout, regulators hope to strike a balance between encouraging technological advancement and protecting consumers.
The CBN is expected to announce operational guidelines for the sandbox in the coming months.
Nigeria Moves to Tax the Digital Assets Economy
Another major pillar of the Executive Order is taxation.
The Nigeria Revenue Service (NRS) will introduce a dedicated tax framework for virtual asset transactions, bringing greater clarity to one of the country’s fastest-growing segments of the digital economy.
The policy is expected to:
- clarify tax obligations for digital asset operators;
- improve voluntary tax compliance;
- reduce tax avoidance;
- broaden Nigeria’s tax base; and
- ensure that virtual asset businesses contribute fairly to national revenue.
As digital assets continue to gain mainstream adoption, the move reflects government’s determination to capture economic value from the sector without discouraging innovation.
White Paper to Shape Nigeria’s Long-Term Digital Assets Strategy
Beyond immediate regulatory reforms, the Federal Government is finalising a comprehensive Virtual Assets White Paper.
The document will provide a long-term roadmap for developing Nigeria’s digital assets ecosystem, covering implementation priorities, institutional responsibilities, market development strategies and policy reforms required to sustain growth.
Meanwhile, the newly constituted Virtual Asset Council has been directed to produce a Harmonised Implementation Framework within 30 days to guide participating agencies in executing the Executive Order.
A Turning Point for Nigeria’s Digital Economy
Industry observers believe the Executive Order could become one of the most consequential digital economy reforms introduced by the Tinubu administration.
By replacing fragmented oversight with coordinated regulation, Nigeria is signalling that it intends to become one of Africa’s leading jurisdictions for responsible blockchain innovation and digital asset governance.
The framework is expected to deliver several long-term benefits, including:
- stronger investor confidence;
- improved consumer protection;
- enhanced anti-money laundering and counter-terrorism financing enforcement;
- increased transparency across digital finance;
- accelerated fintech innovation;
- improved tax administration; and
- greater integration of digital assets into the formal financial system.
The coordinated approach also creates opportunities for banks and traditional financial institutions to safely expand into cryptocurrency custody, tokenisation services, blockchain infrastructure and other emerging digital finance products.
Balancing Opportunity with Investor Protection
While digital assets present significant economic opportunities, they also remain a high-risk investment class.
The government’s new framework acknowledges both realities.
For investors, digital assets continue to offer:
- portfolio diversification;
- access to global investment markets;
- financial inclusion opportunities;
- exposure to blockchain innovation; and
- potentially higher investment returns.
However, the sector remains vulnerable to:
- extreme price volatility;
- cyberattacks;
- fraudulent investment schemes;
- operational failures;
- evolving regulatory requirements; and
- technology-related risks.
The Executive Order seeks to reduce these risks by improving regulatory coordination while preserving space for legitimate innovation to flourish.
Positioning Nigeria for Africa’s Digital Finance Future
President Tinubu’s Executive Order represents far more than an administrative reform—it signals Nigeria’s ambition to become a regional leader in digital finance, blockchain innovation and virtual asset governance.
As digital assets increasingly reshape global financial systems, the new framework provides the institutional foundation needed to protect consumers, attract responsible investment, strengthen regulatory certainty and improve government revenue collection.
Combined with the forthcoming CBN regulatory sandbox, the NRS virtual assets tax policy and the Federal Government’s planned Virtual Assets White Paper, the initiative positions Nigeria to build a secure, transparent and globally competitive digital assets ecosystem capable of supporting innovation while safeguarding the integrity of the country’s financial system.
