President Bola Tinubu has signed an Executive Order establishing a coordinated regulatory framework for virtual assets in Nigeria, in a move aimed at strengthening oversight of the country’s growing digital asset industry, protecting investors and tackling financial crimes linked to the sector.
The new framework, known as the Presidential Executive Order on Virtual Assets Coordination, 2026, takes immediate effect and is expected to improve collaboration among financial regulators while promoting responsible innovation in the digital economy.
The development was disclosed in a statement issued on Friday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.
According to Onanuga, the Executive Order was signed pursuant to Section 5 of the 1999 Constitution and seeks to address the challenges created by fragmented regulation of virtual assets, which increasingly fall under the responsibilities of several government agencies.
He explained that the rapid growth of cryptocurrencies, blockchain technology and other digital assets has created regulatory overlaps, making it necessary to establish a coordinated system that allows agencies to work together more effectively.
The new framework is also designed to close loopholes that have been exploited by fraudulent operators and criminal networks.
According to the presidency, the absence of coordinated regulation has exposed Nigeria to risks such as money laundering, terrorism financing, cybercrime, data privacy breaches, fraud and significant revenue losses.
“Too often, unregistered and fraudulent operators have exploited these gaps to prey on unsuspecting Nigerians, costing families their savings,” Onanuga said.
Over the past few years, the popularity of cryptocurrencies and other digital assets has grown significantly in Nigeria, driven by increasing internet access, financial technology innovation and demand for alternative investment opportunities.
However, the sector has also witnessed cases of fraudulent investment schemes, unlicensed exchanges and scams that have led to huge financial losses for many investors.
Experts have repeatedly called for a stronger regulatory framework that protects consumers without discouraging innovation in the country’s fast-growing digital economy.
To strengthen oversight, the Executive Order establishes a Virtual Asset Council, which will serve as the highest coordinating body for the regulation of virtual assets in Nigeria.
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).
According to the statement, the council will provide policy direction, coordinate the activities of participating agencies and ensure that regulation of the sector remains consistent and effective.
It will also work closely with the Attorney General of the Federation to develop a harmonised legal and institutional framework for virtual assets.
The Executive Order further establishes a Virtual Asset Office, which will be located at the Central Bank of Nigeria.
The office will function as the operational secretariat of the council and will coordinate information sharing among regulators, process applications and manage reporting through an integrated supervisory technology platform.
The presidency stressed that the Executive Order does not create a new regulatory agency or remove statutory powers from existing institutions.
Instead, it provides a framework for better coordination while allowing each regulator to continue performing its legally assigned responsibilities.
“The Executive Order does not create a new regulator or transfer powers between agencies. Each institution retains its full statutory mandate and independence,” Onanuga said.
He explained that regulatory responsibilities would continue to depend on the type of virtual asset or service involved.
Under the new arrangement, virtual assets classified as securities will remain under the supervision of the Securities and Exchange Commission.
Meanwhile, payment services, settlement systems, custody services and other activities involving non-security virtual assets will continue to be regulated by the Central Bank of Nigeria.
Where there is uncertainty over which agency should regulate a particular digital product or service, the newly established council will determine the appropriate regulator.
As part of efforts to encourage innovation while maintaining adequate oversight, the CBN has also been directed to introduce a regulatory sandbox for virtual asset operators.
The sandbox will allow eligible companies to test new cryptocurrency products, blockchain technologies and related financial services under regulatory supervision before they are introduced into the wider market.
According to the presidency, the initiative will enable regulators to better understand emerging technologies and evaluate their impact on financial stability, consumer protection, monetary policy, financial inclusion and government revenue.
The Executive Order also assigns new responsibilities to the Nigeria Revenue Service regarding taxation of digital assets.
According to Onanuga, the agency will issue a tax policy specifically for the virtual assets sector to clarify how existing tax laws apply to cryptocurrency transactions and related activities.
The policy is expected to improve voluntary tax compliance while ensuring that businesses operating in the digital asset industry contribute fairly to government revenue.
The presidency also disclosed that the Federal Government is finalising a comprehensive Virtual Assets White Paper, which will define Nigeria’s long-term strategy for regulating the sector.
The document is expected to outline policy objectives, implementation priorities and the government’s broader vision for integrating digital assets into the national economy.
The newly established Virtual Asset Council has been directed to prepare a Harmonised Implementation Framework within 30 days.
The framework will provide practical guidelines for participating agencies and ensure uniform implementation of the Executive Order.
Nigeria is regarded as one of Africa’s largest cryptocurrency markets, with millions of people using digital assets for investment, savings, remittances and cross-border transactions.
In recent years, the Federal Government has gradually shifted from a restrictive approach to one that seeks to balance innovation with effective regulation.
The Securities and Exchange Commission has already introduced rules for digital assets classified as securities, while the Central Bank has also revised aspects of its policy on virtual asset service providers.
They say the success of the framework will depend on effective cooperation among regulators, transparent implementation and consistent enforcement aimed at protecting investors while supporting technological innovation and economic growth.