Nigeria forms Virtual Asset Council for crypto

TLDR

Nigeria has created a national Virtual Asset Council to coordinate crypto regulation, signaling a shift from fragmented oversight toward a formal, rules-based framework for digital assets.

1. The council is established by a new Presidential Executive Order and brings the Central Bank, SEC, tax and security agencies into one coordinated structure.
2. For users and startups, the framework aims to protect against fraud and illicit finance while opening a clearer path for exchanges, custodians and token projects to operate legally.
3. The council has 30 days to design rollout plans, and a forthcoming virtual asset white paper will determine how friendly the environment becomes for innovation and institutional capital.

Deep Dive

1. New Oversight Framework

President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, which takes effect immediately and establishes a national Virtual Asset Council chaired by the Central Bank of Nigeria (CBN) with the Revenue Service and SEC Nigeria as vice chairs.

According to the order, the council will coordinate token oversight across the CBN, SEC, Financial Intelligence Unit and national security office, addressing previous gaps where agencies operated in silos and unregistered operators exploited regulatory fragmentation, sometimes wiping out family savings. The order explicitly avoids creating new agencies, instead clarifying roles and adding a virtual asset office inside the CBN to handle day-to-day coordination via an integrated information platform.

2. Impact On Nigerian Crypto Users

Under the new scheme, SEC Nigeria retains oversight of securities-like tokens and registration, while the CBN covers payments, settlements and custody for non-security virtual assets, with the council stepping in when jurisdiction is unclear. The CBN will also run a regulatory sandbox for exchanges and startups, and the Revenue Service is tasked with developing a dedicated tax policy for crypto activity.

This moves Nigeria, one of Africas largest crypto-using populations, from a stance centered on restrictions and informal market activity toward formal registration, consumer protection and antimoney laundering controls. Compliance costs and documentation may be heavy for smaller startups, but clearer rules and a sandbox could make it easier for serious operators and institutions to participate.

3. What To Watch Next

The Virtual Asset Council has 30 days to propose a rollout framework, and the government is preparing a broader virtual assets white paper that will shape longer-term policy. Key signals to watch include:

1. How strict licensing and capital requirements are for exchanges and custodians.
2. Whether offshore platforms can register and operate under Nigerian rules.
3. How tax treatment balances revenue collection with keeping activity onshore rather than pushing users to informal channels.

Conclusion

Nigerias new Virtual Asset Council marks a pivot from fragmented, often hostile treatment of crypto toward an integrated, consumer-protection-focused regime. The real impact will depend on how quickly and pragmatically the council translates this executive order into licensing, sandbox rules and tax policy that give both local users and global platforms confidence to operate within Nigerias formal financial system.