Tinubu signs executive order to strengthen regulation of virtual assets in Nigeria

President Bola Tinubu has signed an Executive Order creating a coordinated regulatory framework for virtual assets in Nigeria. The order establishes a Virtual Asset Council led by the Central Bank of Nigeria to improve oversight, protect investors, combat financial crimes and promote innovation. It also introduces a regulatory sandbox, plans for a virtual assets tax policy and a long-term strategy to support the growth of Nigeria's digital economy.

President Bola Tinubu has signed a new Executive Order establishing a coordinated regulatory framework for virtual assets in Nigeria, marking a major step towards tightening oversight of the country's fast-growing digital asset sector.
The Presidential Executive Order on Virtual Assets Coordination, 2026, took immediate effect after being signed under Section 5 of the 1999 Constitution.
The new framework is designed to improve cooperation among key regulatory agencies, strengthen investor protection, combat financial crimes and support responsible innovation within Nigeria's digital economy.

WHY THE GOVERNMENT INTRODUCED THE ORDER

According to the President's Special Adviser on Information and Strategy, Bayo Onanuga, the Executive Order addresses longstanding regulatory fragmentation in the virtual assets industry.
As cryptocurrency, blockchain technology and other digital assets continue to expand across financial markets, several government agencies have overlapping responsibilities, creating gaps that fraudulent operators have exploited.
The government said the lack of coordinated regulation has contributed to risks such as money laundering, terrorism financing, cybercrime, fraud, data privacy breaches and revenue losses.
Officials also noted that many Nigerians have lost significant amounts of money through fraudulent investment schemes operating in the digital asset space.

NEW VIRTUAL ASSET COUNCIL ESTABLISHED

To improve coordination, the Executive Order establishes a Virtual Asset Council.
The council will be chaired by the Central Bank of Nigeria (CBN), while the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) will serve as vice-chairmen.
Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).
The council will provide policy direction, coordinate regulatory activities among participating agencies and work with the Attorney General of the Federation to develop a harmonised legal framework for the sector.

VIRTUAL ASSET OFFICE TO DRIVE IMPLEMENTATION

The Executive Order also creates a Virtual Asset Office, which will operate from the Central Bank of Nigeria.
The office will function as the council's operational secretariat, coordinating information sharing among regulators, processing applications and supporting supervision through an integrated technology platform.
Government officials stressed that the Executive Order does not establish a new regulator or remove statutory powers from existing institutions.
Instead, each agency will continue performing its legally assigned responsibilities while working more closely with other regulators.

CLEARER REGULATORY RESPONSIBILITIES

Under the new framework, digital assets classified as securities will continue to be regulated by the Securities and Exchange Commission.
Meanwhile, payment services, settlement systems, custody services and other non-security virtual asset activities will remain under the supervision of the Central Bank of Nigeria.
Where uncertainty exists over regulatory jurisdiction, the Virtual Asset Council will determine which agency has responsibility.

SANDBOX FOR INNOVATION

As part of the reforms, the Central Bank will introduce a regulatory sandbox.
The programme will allow eligible businesses to test blockchain technologies, virtual asset products and related financial innovations under regulatory supervision before launching them commercially.
Authorities say the initiative will help regulators better understand emerging technologies while encouraging innovation without compromising financial stability or consumer protection.

TAX POLICY AND LONG-TERM STRATEGY

The Nigeria Revenue Service is expected to publish a dedicated tax policy for virtual assets to clarify how existing tax laws apply to digital asset activities.
Government officials believe this will improve voluntary tax compliance while ensuring the rapidly expanding digital economy contributes to national revenue.
The Federal Government also disclosed that it is finalising a comprehensive Virtual Assets White Paper that will outline Nigeria's long-term strategy, policy direction and implementation priorities for the industry.
The newly established Virtual Asset Council has been directed to produce a Harmonised Implementation Framework within 30 days to guide participating agencies on implementing the Executive Order.
The reforms represent one of Nigeria's most comprehensive efforts to regulate virtual assets while encouraging innovation, improving investor confidence and positioning the country for greater participation in the global digital economy.