Nigeria’s President Signs Executive Order on Virtual Assets
President Bola Tinubu has issued an executive order that seeks to bring clarity and oversight to Nigeria’s rapidly growing virtual‑asset market. The directive, announced by the State House, takes effect immediately and aims to create a coordinated regulatory approach across several federal agencies.
What the Order Establishes
The order creates a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN). Other members include the Nigeria Revenue Service (NRS), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Advisor (ONSA).
The council’s mandate is to:
- Develop a harmonised legal and institutional framework that aligns the virtual‑asset sector with Nigeria’s national security, economic and social goals.
- Facilitate cooperation among financial, tax and capital‑market authorities.
- Protect consumers from fraud and safeguard the integrity of the financial system.
- Encourage responsible innovation through a supervised “sandbox” environment.
According to the State House statement, the CBN will also launch a virtual‑asset sandbox that allows firms to test products and services under regulatory supervision before broader market release.
Tax Policy and Long‑Term Direction
The executive order notes that tax authorities are drafting a specific policy for virtual‑asset transactions. The federal government says it has completed a white paper that outlines the country’s longer‑term policy direction and implementation priorities for the sector.
Why Stablecoins Matter in This Context
Stablecoins—digital tokens pegged one‑to‑one with fiat currencies such as the US dollar—have seen rising adoption in Nigeria, particularly for remittances and cross‑border trade. However, the market has also experienced notable collapses that raised consumer‑protection concerns.
Rotimi Ogunyemi, a Lagos‑based technology lawyer interviewed by African Business, said the new regulatory framework could shift more stablecoin activity into regulated channels.
“The executive order could bring more stablecoin and cross‑border activity into regulated channels where customers enjoy clearer protections,” Ogunyemi explained. “Regulation should require credible reserves, separation of customer assets, reliable repayment and clear consumer protections.”
He added that clear rules around reserve backing and asset segregation are essential to prevent the kind of failures that have undermined trust in the past.
Historical Regulatory Stance
Nigeria’s approach to cryptocurrencies has been cautious. In February 2021, the CBN directed banks to close accounts linked to cryptocurrency trading and prohibited financial institutions from processing crypto transactions (CBN Circular, Feb 2021). That move pushed much of the activity into peer‑to‑peer platforms and informal channels.
The latest executive order represents a pivot from outright restriction to a structured, collaborative regulatory model. By involving multiple agencies and proposing a sandbox, the government signals an intention to balance innovation safeguards with consumer protection.
Looking Ahead
Stakeholders will be watching how the Virtual Asset Council translates the order’s broad goals into concrete rules—particularly licensing requirements, anti‑money‑laundering obligations, and tax treatment. The success of the sandbox initiative will also be a key indicator of whether Nigeria can nurture home‑grown fintech solutions while mitigating risks associated with virtual assets.
