Nigeria launches Virtual Asset Council for crypto

TLDR

Nigeria has set up a new Virtual Asset Council to coordinate crypto oversight, signaling a shift toward formal regulation rather than bans.

1. A presidential executive order creates a Virtual Asset Council, chaired by the Central Bank, to coordinate regulation of tokens and crypto services.
2. The framework aims to protect users from fraud and illicit finance while opening the door to more institutional participation in Nigerias large crypto market.
3. Key next steps include a 30 day rollout plan, a central bank sandbox for exchanges and startups, and a dedicated tax policy for virtual assets.

Deep Dive

1. New Oversight Structure

President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, which establishes a national framework for crypto oversight and a new Virtual Asset Council, effective immediately. According to the official community report on the order, the council is chaired by the Central Bank of Nigeria (CBN), with the Revenue Service and Securities and Exchange Commission (SEC) as vice chairs, plus members like the Financial Intelligence Unit and the national security office, all coordinated through a CBN virtual asset office and shared data platform.

The order does not create new agencies or strip existing ones of powers, instead it clarifies that SEC covers securities-linked tokens and registration, CBN covers payments, settlements and custody for non-security virtual assets, and the council resolves jurisdictional disputes, runs a CBN sandbox for exchanges and startups, and supports a dedicated tax policy for virtual assets, as outlined in the virtual assets coordination order.

2. Impact On Crypto Activity

Nigeria previously had fragmented oversight, with agencies acting in silos and gaps exploited by unregistered operators, sometimes resulting in wiped-out family savings, which this order explicitly seeks to address via coordinated supervision and stronger fraud and anti-money-laundering controls.

At the same time, Nigeria has one of Africas largest token-using populations, so clearer rules and a sandbox could eventually make it easier for regulated exchanges, fintechs and institutional players to serve Nigerian users and deploy new products.

Compliance costs and enforcement against unregistered platforms may push out some smaller startups or informal peer to peer operators, shifting activity toward licensed venues over time.

3. What To Watch Next

The Virtual Asset Council has 30 days to deliver a rollout framework, which will likely define licensing processes, technical standards and transitional periods for existing operators.

The CBN sandbox for exchanges and startups, plus the Revenue Services dedicated tax policy, will show how supportive the regime is for innovation versus primarily focused on control and revenue collection.

Finally, the government is preparing a broader virtual assets white paper, and the balance it strikes between consumer protection, capital controls and market development will shape whether Nigeria becomes a regional hub or a heavily constrained market for crypto.

Conclusion

Nigerias new Virtual Asset Council marks a move from ad hoc restrictions toward a coordinated, rules based regime for crypto, with the potential to both tighten enforcement and legitimize regulated players. Whether this becomes a catalyst for institutional capital and safer retail participation or mainly a compliance burden will depend on how the 30 day rollout, sandbox design and tax policy are implemented in practice.