Nigeria has established a Virtual Asset Council through a new executive order to coordinate crypto regulation, strengthen inter-agency oversight, protect investors, and support responsible innovation.
Nigeria has taken another significant step toward regulating its growing cryptocurrency industry after President Bola Ahmed Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026. The order establishes a Virtual Asset Council to harmonize oversight across financial regulators and create a more coordinated approach to governing digital assets. The executive order took effect immediately upon signing.
The move comes as Nigeria continues to rank among the world's largest cryptocurrency markets. By bringing key government agencies under a single coordination framework, authorities aim to reduce regulatory fragmentation, improve investor protection, and encourage responsible innovation in the country's digital economy.
A Unified Approach to Crypto Regulation
According to the presidency, the executive order responds to an increasingly complex digital asset ecosystem where cryptocurrencies, tokenized assets, and blockchain-based financial services often fall under the overlapping responsibilities of multiple regulators.
Rather than creating a new standalone regulator, the framework strengthens cooperation among existing authorities while preserving their statutory powers. The government says the new approach is intended to close regulatory gaps that have allowed fraudulent operators to exploit investors and create risks related to money laundering, terrorism financing, cybersecurity, and tax compliance.
Who Will Serve on the Virtual Asset Council?
The newly established Virtual Asset Council will be chaired by the Central Bank of Nigeria (CBN).
Other key members include:
- Nigeria Revenue Service (NRS) as co-vice chair
- Securities and Exchange Commission (SEC) as co-vice chair
- Nigerian Financial Intelligence Unit (NFIU)
- Office of the National Security Adviser (ONSA)
The council will provide strategic policy direction, coordinate regulatory activities among participating agencies, and work with the Attorney-General of the Federation to develop a harmonized legal and institutional framework for virtual assets.
Virtual Asset Office to Support Implementation
The executive order also creates a Virtual Asset Office, which will serve as the council's operational arm.
The office will be headquartered within the Central Bank of Nigeria and will coordinate day-to-day implementation of the new framework, helping participating agencies share information, supervise market developments, and execute joint regulatory initiatives.
Regulatory Sandbox Planned for Digital Assets
As part of the broader initiative, the Central Bank announced plans to launch a virtual asset regulatory sandbox.
The sandbox will allow eligible companies to test blockchain products, digital asset services, and financial innovations in a controlled environment under regulatory supervision.
Officials say the program will help regulators assess potential impacts on:
- Financial stability
- Consumer protection
- Monetary policy
- Financial inclusion
- Market integrity
- Revenue administration
The controlled testing environment is intended to encourage innovation while minimizing risks before new products reach the wider market.
Government to Introduce Crypto Tax Policy
Alongside the new coordination framework, the Nigeria Revenue Service is preparing a dedicated tax policy for the virtual asset sector.
The policy is expected to clarify how existing tax laws apply to cryptocurrency transactions, improve compliance among digital asset businesses, and ensure that the rapidly expanding sector contributes appropriately to government revenue.
White Paper to Guide Long-Term Policy
The federal government also confirmed that it is finalizing a comprehensive Virtual Assets White Paper.
The document will outline Nigeria's long-term strategy for digital assets, establish implementation priorities, and provide guidance for businesses, regulators, investors, and other stakeholders participating in the country's evolving blockchain ecosystem.
What the New Framework Means for the Crypto Industry
Nigeria has one of Africa's most active cryptocurrency markets, with digital assets widely used for remittances, savings, payments, and cross-border transactions.
The new coordination framework aims to provide greater regulatory certainty without introducing an entirely new regulatory authority. By improving collaboration between financial, securities, tax, intelligence, and national security agencies, officials hope to strengthen consumer protection while supporting legitimate innovation in blockchain technology.
For cryptocurrency exchanges, fintech firms, blockchain startups, and investors, the initiative could eventually lead to clearer compliance expectations, more predictable licensing processes, and a more stable regulatory environment.
Next Steps
The Virtual Asset Council has been directed to prepare a Harmonised Implementation Framework within 30 days to guide participating agencies in carrying out the executive order.
As regulators finalize the sandbox, tax policy, and broader virtual assets white paper, Nigeria appears to be shifting from fragmented oversight toward a coordinated national strategy for digital assets. If successfully implemented, the framework could strengthen investor confidence while positioning the country as one of Africa's leading jurisdictions for regulated blockchain innovation.
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