Executive Order Signed to Regulate Virtual Assets in Nigeria
President Bola Tinubu has enacted the 2026 Executive Order on Virtual Asset Adjustment, aimed at standardizing the regulation of virtual assets within Nigeria. This initiative seeks to enhance collaboration among the nation’s financial, revenue, and capital market institutions, safeguard the public against fraud, and maintain the integrity of the financial system, all while promoting responsible innovation.
Immediate Implementation Following Constitutional Authority
The order was signed under Article 5 of the 1999 Constitution of the Federal Republic of Nigeria, as amended, and is effective immediately. It addresses the current fragmented regulatory environment that exists as virtual assets progressively obscure the traditional distinctions between currencies, money, commodities, and securities.
Challenges in Overlapping Regulatory Frameworks
The existing scenario features relevant agencies operating in isolation, which leads to overlapping functions in some areas while leaving critical gaps in others. Consequently, Nigeria faces increased risks such as money laundering, terrorist financing, cybersecurity vulnerabilities, and fraud. Unscrupulous actors often exploit these weaknesses, endangering the financial well-being of unsuspecting citizens.
Establishment of the Virtual Assets Council
This Executive Order aims to address regulatory gaps without adding new layers of oversight or altering the authorities of existing agencies. To this end, it establishes the Virtual Assets Council, which will be chaired by the Central Bank of Nigeria (CBN) and include the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) as vice-chairs. Other participants will include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).
Coordinated Oversight and Information Sharing
The Council’s primary role will be to provide strategic policy direction, foster collaboration among the involved agencies, and work alongside the Attorney General of the Federation to create a harmonized legal and institutional framework. This will ensure alignment with Nigeria’s national security, economic, and social objectives. Additionally, the order establishes the Virtual Assets Authority, which will manage day-to-day operations and facilitate information sharing across agencies, utilizing a unified surveillance technology platform.
Regulatory Clarity and Operator Registration
Significantly, the order does not form new regulatory authorities or shift existing powers among agencies; rather, it coordinates their efforts. Each agency will retain its legal authority while operating under a clearly defined framework. Registration for operators will depend on the nature of the activities and assets involved, with the SEC handling securities and the CBN overseeing payments, settlement, and related services for non-securities virtual assets. This structured approach helps eliminate oversight gaps that previously allowed unregistered operators to function without scrutiny.
Regulatory Sandbox and Upcoming Innovations
To further this coordinated approach, the Central Bank of Nigeria is working to establish a regulatory sandbox for virtual assets. This controlled environment will enable eligible operators to safely test and develop virtual asset products and blockchain solutions under stringent supervision. This initiative is designed to evaluate the implications of innovations on monetary sovereignty, financial stability, market integrity, consumer protection, and revenue management before these products are launched in the broader market.
Upcoming Tax Policy and Long-term Strategy
In a related initiative, the Nigeria Revenue Authority will soon unveil a tax policy tailored for the virtual asset sector. This policy will clarify the tax obligations associated with virtual assets, reinforce voluntary compliance, and ensure substantial contributions to national revenue as the sector evolves. Additionally, the federal government is in the process of finalizing a comprehensive Virtual Assets White Paper, which will define the country’s long-term policy direction and implementation priorities for the sector.
The Council is tasked with developing a cohesive implementation framework within 30 days, ensuring that involved agencies can effectively put the order into practice.
Bayo Onanuga
Special Advisor to the President;
(Information and Strategy),
July 17, 2025
