Nigeria Launches Virtual Asset Council For Oversight

TLDR

Nigeria has created a new Virtual Asset Council and oversight framework by presidential executive order, moving from fragmented crypto rules toward coordinated regulation.

1. The order sets up a Virtual Asset Council chaired by the Central Bank of Nigeria, dividing crypto oversight across existing agencies rather than creating a new regulator.
2. Authorities aim to crack down on unregistered operators while offering a regulated path for exchanges, payment firms, and startups through registration and a planned sandbox.
3. The council must deliver an implementation framework within 30 days, and a broader virtual assets white paper is in progress, which will shape how friendly or restrictive the regime becomes.

Deep Dive

1. New Oversight Structure

President Bola Tinubu signed an executive order on virtual assets that is effective immediately and creates a formal coordination framework for Nigerias crypto sector. Reports describe a Virtual Asset Council as the main policy-making body, chaired by the Central Bank of Nigeria (CBN), with the Revenue Service and Securities and Exchange Commission (SEC) as vice chairs and participation from the Financial Intelligence Unit and National Security Adviser.

A dedicated Virtual Asset Office inside the CBN will handle day-to-day operations and information sharing, while the order keeps existing agencies in place rather than building a new standalone crypto regulator, as outlined in the community summary of the Presidential Executive Order on Virtual Assets Coordination.

2. How Crypto Activity Is Affected

Responsibilities are split: SEC Nigeria oversees securities-linked token activity and registration, while the CBN manages payments, settlements, and custody for non-security virtual assets. This clarifies who a project or exchange must deal with, reducing the previous silo problem highlighted in coverage of the executive order to regulate the country's virtual assets sector.

The order explicitly targets unregistered operators and aims to curb fraud, money laundering, and terrorism financing, which means informal P2P brokers and lightly documented platforms face higher enforcement risk. At the same time, the CBN plans a regulatory sandbox where qualified operators can test products under supervision, and the Revenue Service is preparing a sector-specific tax policy.

3. Timelines And Key Signals To Watch

The Virtual Asset Council has 30 days to propose an implementation framework, a first test of how practical and proportionate the rules will be. The government is also working on a broader virtual assets white paper that should reveal its long-term stance on crypto and blockchain innovation.

For crypto users and firms, the main near-term signals are: which registration requirements are set, how strict the sandbox criteria are, how taxation of crypto gains and payments is structured, and whether enforcement focuses on high risk actors or sweeps broadly across retail usage.

Conclusion

Nigerias new Virtual Asset Council marks a clear shift from ad hoc or restrictive crypto treatment toward coordinated, rules-based oversight. If the implementation framework and sandbox strike a balance between investor protection and innovation, Nigeria could become a leading regulated hub for digital assets in Africa. If compliance burdens are heavy or enforcement is blunt, activity may migrate to friendlier jurisdictions or deeper into informal channels, so watching the next 30 days of regulatory detail will be crucial.