Tinubu Establishes CBN-Led Council to Coordinate Nigeria’s Virtual Asset Regulation

President Bola Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, 2026, creating a coordinated framework for regulating cryptocurrencies and other virtual assets in Nigeria.

The order, which took immediate effect, is intended to strengthen cooperation among financial, capital market, tax and security agencies while addressing fraud, money laundering, cyber threats and revenue losses linked to the fast-growing digital asset sector.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, announced the development on Friday.

According to the Presidency, the executive order was issued under Section 5 of the 1999 Constitution, as amended, in response to weaknesses created by Nigeria’s fragmented approach to virtual asset regulation.

Virtual assets increasingly operate across traditional regulatory categories, including currencies, securities, commodities, payment systems and financial services. This has sometimes created uncertainty over which government agency should supervise a particular company, product or transaction.

New Council to Coordinate Regulators

At the centre of the new framework is the Virtual Asset Council, which will be chaired by the Central Bank of Nigeria.

The Nigeria Revenue Service and the Securities and Exchange Commission will serve as vice-chairs. Other members include the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser.

The council will provide policy direction, improve cooperation among participating institutions and work with the Attorney-General of the Federation to develop a unified legal and institutional framework for the sector.

The government said the arrangement would reduce regulatory overlaps while closing gaps that have allowed some unregistered operators to conduct business without adequate supervision.

The council will also intervene when there is uncertainty over which agency has responsibility for a particular virtual asset activity.

Existing Regulators Retain Their Powers

The Presidency clarified that the executive order does not establish another financial regulator or transfer statutory powers from existing institutions.

Instead, each agency will retain its current responsibilities while operating within a coordinated structure.

Virtual assets and activities classified as securities will remain under the supervision of the Securities and Exchange Commission.

The Central Bank of Nigeria will oversee payment, settlement, custody and related services involving virtual assets that are not classified as securities.

This distinction could provide greater clarity for digital asset exchanges, payment companies, custody providers and blockchain businesses that have previously faced uncertainty over the appropriate registration process.

However, the final regulatory treatment of a company will depend on the nature of its services and the assets it handles. Where responsibility is unclear, the Virtual Asset Council will determine the appropriate supervising authority.

Virtual Asset Office to Manage Operations

The executive order also establishes a Virtual Asset Office as the operational arm of the council.

Its secretariat will be based at the Central Bank of Nigeria and will manage the daily coordination of applications, regulatory information and reporting among participating agencies.

The office will be supported by an integrated supervisory technology platform that gives regulators shared visibility into the sector.

Each participating institution will, however, retain control and ownership of its data.

The arrangement is expected to help regulators identify suspicious activities faster, share relevant information and reduce duplication in the supervision of virtual asset businesses.

Government Targets Fraud and Financial Crime

The Presidency said fragmented regulation had exposed Nigeria to several risks, including money laundering, terrorism financing, cybersecurity threats, data privacy breaches, fraud and tax revenue losses.

Unregistered and fraudulent operators have also taken advantage of regulatory gaps to target Nigerians, sometimes causing individuals and families to lose their savings.

Under the new system, the government intends to tighten supervision without preventing legitimate businesses from developing blockchain-based financial products and services.

The challenge will be balancing consumer protection and national security with the need to preserve innovation in one of Nigeria’s fastest-growing segments of the digital economy.

CBN to Introduce Regulatory Sandbox

The Central Bank is also developing a regulatory sandbox for virtual assets.

The sandbox will allow eligible companies to test cryptocurrency products, blockchain solutions and other digital asset services under regulatory supervision before introducing them to the wider market.

Regulators will use the testing environment to assess the possible effects of new products on financial stability, monetary sovereignty, market integrity, consumer protection, financial inclusion and government revenue.

The CBN is expected to release further details covering eligibility, application procedures and operational requirements.

NRS to Release Virtual Asset Tax Policy

The Nigeria Revenue Service will develop a tax policy explaining how Nigeria’s tax laws apply to virtual assets and companies operating within the sector.

The policy is expected to provide clearer guidance for exchanges, service providers, investors and other taxpayers while helping the government improve voluntary compliance and collect revenue from digital asset activities.

The Federal Government is also finalising a comprehensive Virtual Assets White Paper.

The document will outline Nigeria’s long-term policy direction, regulatory priorities and implementation plans for the industry.

Council Gets 30-Day Deadline

The Virtual Asset Council has been directed to produce a Harmonised Implementation Framework within 30 days.

The framework will guide participating agencies as they implement the executive order and coordinate their responsibilities.

For virtual asset businesses, the immediate significance of the order is the prospect of clearer registration requirements and more predictable supervision.

It also means that companies operating in the sector are likely to face closer scrutiny across licensing, tax compliance, consumer protection, anti-money laundering controls and financial reporting.

The effectiveness of the new structure will ultimately depend on how quickly the agencies translate the executive order into practical rules and whether their cooperation reduces uncertainty rather than creating another layer of administrative complexity.