Nigerian President Bola Ahmed Tinubu has signed an executive order establishing a virtual asset council to harmonize digital asset regulation, strengthen inter-agency cooperation, and protect citizens from fraud. The move aims to provide regulatory certainty and close oversight gaps for crypto operators.
Nigeria's move to establish a unified regulatory framework for virtual assets aims to provide clarity for operators, enhance financial system integrity, and curb fraud, potentially impacting the country's significant digital asset adoption and its role in cross-border payments.
President Bola Ahmed Tinubu of Nigeria has signed an executive order aimed at addressing the fragmentation of digital asset regulation within the country. The order establishes a virtual asset council, to be headed by top financial regulators, which will direct related policies. This initiative seeks to harmonize regulation, strengthen cooperation among financial, revenue, and capital markets agencies, and protect citizens from fraud while enabling responsible innovation.
According to Bayo Onanuga, the president's special adviser, the executive order does not create a new regulator or transfer powers between existing agencies. Instead, it coordinates their work, ensuring each institution retains its statutory mandate and independence. The framework will require registration based on the nature of the activity and the asset involved, aiming to close oversight gaps and prevent unregistered operators from escaping scrutiny.
Nigeria has experienced significant growth in digital asset adoption, particularly in cryptocurrencies and stablecoins. An International Monetary Fund (IMF) report indicated that Nigeria accounted for approximately 60% of stablecoin inflows in sub-Saharan Africa since 2019, with crypto inflows totaling about $59 billion between July 2023 and June 2024. The IMF noted the policy challenge of narrowing the gap that made workarounds attractive in cross-border payments while containing new risks, emphasizing the need for open innovation anchored in sound macroeconomic policy and effective regulation.
The Nigerian tax authority, the Nigerian Revenue Service, is also updating its approach to digital assets. Previously, under the Nigeria Tax Administration Act, crypto service providers were mandated to link transactions to tax identification numbers and, in some cases, national identification numbers.