President Bola Tinubu issues sweeping directive creating Virtual Asset Council, regulatory sandbox, and tax framework as Nigeria moves to tame the wild west of cryptocurrency
Abuja, Nigeria – In a landmark move poised to reshape Nigeria’s digital finance landscape, President Bola Tinubu has signed a new executive order establishing a comprehensive regulatory framework for virtual assets, bringing the country’s booming cryptocurrency sector under coordinated government oversight for the first time.
The Presidential Executive Order on Virtual Assets Coordination, 2026, which takes immediate effect, creates a powerful regulatory structure placing the Central Bank of Nigeria (CBN), the Nigeria Revenue Service (NRS), and the Securities and Exchange Commission (SEC) at the helm of overseeing the rapidly evolving digital assets industry.
A New Era of Crypto Regulation
The Presidency announced Friday that the directive aims to harmonize virtual asset regulation, strengthen collaboration among financial watchdogs, protect Nigerians from fraudulent schemes, and encourage responsible innovation in the sector.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, explained that the executive order became imperative because the explosive growth of virtual assets has blurred “the traditional boundaries between currencies, money, commodities and securities” creating dangerous regulatory overlaps and gaps that unscrupulous operators have exploited.
“Weak coordination among regulatory agencies has left the country vulnerable to money laundering, terrorism financing, cybercrime, fraud and revenue leakages,” the Presidency stated.
“Too often, unregistered and fraudulent operators have exploited these gaps to prey on unsuspecting Nigerians, costing families their savings.”
The New Regulatory Architecture
The executive order establishes a Virtual Asset Council chaired by the CBN, with the NRS and SEC serving as vice-chairs. Other members include:
· Nigerian Financial Intelligence Unit (NFIU)
· Office of the National Security Adviser (ONSA)
The council will provide policy direction, strengthen inter-agency cooperation, and work with the Attorney-General of the Federation to develop a harmonized legal and institutional framework for regulating virtual assets.
A dedicated Virtual Asset Office, domiciled at the CBN, will coordinate information sharing, applications, and reporting among relevant agencies.
Clear Division of Powers
Significantly, the executive order does not create a new regulator or diminish the statutory responsibilities of existing institutions.
“Each institution retains its full statutory mandate and independence,” Onanuga emphasized. “The framework coordinates their work rather than replacing it.”
Under the new structure:
· SEC will continue regulating virtual assets classified as securities
· CBN will supervise payment, settlement, custody, and other services involving non-security virtual assets
· Where regulatory jurisdiction is unclear, the Virtual Asset Council will determine the appropriate supervising agency
Regulatory Sandbox Coming
In a move that signals Nigeria’s openness to innovation, the Presidency disclosed that the CBN is advancing plans to establish a regulatory sandbox for the virtual assets industry.
The sandbox will enable qualified operators to test virtual asset products, blockchain-based services, and other innovations under regulatory supervision before market introduction.
“It will help ensure that innovations that reach Nigerians have been properly examined and supervised,” Onanuga said.
Tax Framework and White Paper
The Nigeria Revenue Service will introduce a dedicated tax policy for the virtual assets sector, clarifying how existing tax laws apply and improving voluntary compliance.
Additionally, the Federal Government is finalizing a Virtual Assets White Paper that will outline Nigeria’s long-term policy direction for the industry.
The newly established Virtual Asset Council has been directed to develop a harmonized implementation framework within 30 days to facilitate execution of the presidential order.
What This Means for Nigeria
This executive order represents a watershed moment for Nigeria’s digital economy. As one of the world’s largest cryptocurrency markets, Nigeria has long struggled to balance innovation with consumer protection and financial stability.
With this coordinated approach, the government aims to:
1. Protect Nigerians from fraudulent schemes
2. Combat money laundering and terrorism financing
3. Capture revenue from the growing digital asset sector
4. Foster responsible innovation
5. Position Nigeria as a regulated hub for virtual assets in Africa
Further details on the regulatory sandbox, tax policy, and implementation timeline are expected in the coming weeks as the council begins its work.
