President Bola Tinubu has introduced a major change to Nigeria’s digital finance space by signing a new executive order that creates a unified system for regulating virtual assets.
The move places the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigeria Revenue Service (NRS) at the centre of overseeing the fast-growing industry.
The new directive took immediate effect after it was announced by the Presidency on Friday. Government officials said the decision is aimed at protecting Nigerians from fraudulent investment schemes while encouraging responsible innovation in digital finance and blockchain technology.
According to a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the executive order became necessary because the rapid growth of virtual assets has created overlapping responsibilities among regulators.
The Presidency explained that digital assets have continued to evolve beyond traditional financial categories.
Consequently, regulators have faced increasing challenges in determining oversight responsibilities.
Furthermore, officials warned that poor coordination among agencies had exposed Nigeria to serious financial crimes.
These include money laundering, terrorism financing, cybercrime, fraud and revenue losses.
According to the statement:
“Too often, unregistered and fraudulent operators have exploited these gaps to prey on unsuspecting Nigerians, costing families their savings.”
To address the problem, the Federal Government established a Virtual Asset Council.
The council will be chaired by the Central Bank of Nigeria.
Meanwhile, the Nigeria Revenue Service and the Securities and Exchange Commission will serve as vice-chairpersons.
Other members include the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser.
According to the Presidency, the council will coordinate government policies and improve cooperation among all participating institutions.
In addition, it will work with the Attorney-General of the Federation to develop a stronger legal framework for regulating virtual assets.
The executive order also creates a Virtual Asset Office.
The office will operate within the Central Bank of Nigeria. Its responsibility will include coordinating information sharing, reporting and applications among relevant government agencies.
However, the Presidency clarified that the new framework does not replace existing regulators.
Instead, it strengthens collaboration while preserving their legal powers.
The statement noted:
“Significantly, the Order does not create a new regulator or transfer powers between agencies. Each institution retains its full statutory mandate and independence, and the framework coordinates their work rather than replacing it.”
Under the new arrangement, the SEC will continue regulating virtual assets classified as securities.
Meanwhile, the CBN will supervise payment systems, settlements, custody services and other non-security digital assets.
Where uncertainty exists, the Virtual Asset Council will determine which agency has oversight.
Furthermore, the Central Bank plans to establish a regulatory sandbox.
The initiative will allow approved companies to test blockchain products and virtual asset services under regulatory supervision.
According to the Presidency:
“It will help ensure that innovations that reach Nigerians have been properly examined and supervised.”
Further details about the sandbox are expected from the apex bank.
Meanwhile, the Nigeria Revenue Service will introduce a tax framework specifically designed for virtual assets.
The policy will explain how existing tax laws apply to digital assets.
Moreover, officials believe it will improve voluntary tax compliance across the industry.
The Federal Government also disclosed that work is ongoing on a Virtual Assets White Paper.
The document will outline Nigeria’s long-term strategy for digital assets and blockchain innovation.
In addition, the newly established council has been directed to prepare a harmonised implementation framework within 30 days.
Therefore, investors, fintech companies and blockchain developers are expected to benefit from clearer rules and stronger regulatory coordination.
