Nigeria establishes coordinated oversight for digital assets
President Bola Tinubu has signed an executive order establishing a unified regulatory framework for virtual assets to strengthen financial oversight, protect consumers, and curb illicit financial activities.
The Presidential Executive Order on Virtual Assets Coordination 2026, which takes immediate effect, addresses the regulatory fragmentation caused by digital assets crossing the jurisdictions of various financial, revenue, and capital market authorities. The absence of a cohesive approach has previously exposed the financial system to money laundering, terrorism financing, cyber threats, and tax evasion.
*President Tinubu
President Bola Tinubu has signed an executive order establishing a unified regulatory framework for virtual assets to strengthen financial oversight, protect consumers, and curb illicit financial activities.
The Presidential Executive Order on Virtual Assets Coordination 2026, which takes immediate effect, addresses the regulatory fragmentation caused by digital assets crossing the jurisdictions of various financial, revenue, and capital market authorities. The absence of a cohesive approach has previously exposed the financial system to money laundering, terrorism financing, cyber threats, and tax evasion.
Key structural developments
The Virtual Asset Council: Established to provide policy direction and coordinate regulatory activities. The body is chaired by the Central Bank of Nigeria (CBN), with the Federal Inland Revenue Service (FIRS) and the Securities and Exchange Commission (SEC) serving as vice-chairs. The Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA) are also represented.
The Virtual Asset Office: Domiciled within the CBN, this office will function as an operational secretariat to facilitate information sharing and cross-agency reporting via an integrated supervisory technology platform.
The framework does not create a new regulatory body or alter the statutory powers of existing institutions. Regulators retain their respective mandates based on the classification of the asset: Securities: Virtual assets classified as securities remain under the purview of the SEC.
Payments and Custody: Non-security virtual assets, payment systems, and custody services remain under the supervision of the CBN.
Innovation, taxation
To support financial technology development, the CBN will introduce a regulatory sandbox. This environment will allow operators to test virtual asset products and blockchain technologies under oversight, enabling authorities to assess their impact on monetary policy and financial stability before wider market deployment.
Additionally, the Federal Inland Revenue Service will introduce a dedicated tax policy for the virtual assets sector to clarify current tax liabilities, encourage compliance, and secure state revenue.
The Virtual Asset Council has been directed to deliver a harmonised implementation framework within 30 days, while the Federal Government finalises a comprehensive white paper outlining its long-term policy priorities for the digital economy.
