Federal Govt Targets Revenue, Investor Protection With New Virtual Assets Framework

President Bola Tinubu has signed an Executive Order on Virtual Assets Coordination, 2026, establishing a new framework to coordinate the regulation of virtual assets across government agencies as Nigeria seeks to curb fraud while supporting innovation in the digital economy, a move analysts say could reshape Nigeria’s digital economy by boosting investor confidence, widening the tax net, and stemming the financial losses caused by unregulated crypto operators.

The Presidency, in a statement issued by the Special Adviser on Information and Strategy, Bayo Onanuga, said the Order was designed to close regulatory gaps that had exposed Nigeria to money laundering, fraud, and revenue losses, without setting up a new regulatory agency.

Under the framework, a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) as vice chairs, would coordinate oversight of cryptocurrencies, stablecoins and other digital assets. The Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA) were also named as members.

“The Order is designed to close these gaps through supervisory coordination, without introducing new layers of regulation or displacing the mandates of existing agencies,” the statement read.

Under the new framework, the Virtual Asset Council will be chaired by the CBN, with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice chairs.

Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

The Council will provide policy direction, improve cooperation among participating agencies, and work with the Attorney General of the Federation to develop a harmonised legal and institutional framework for the sector.

The Executive Order also establishes a Virtual Asset Office, which will serve as the Council’s operational arm. The office will be domiciled at the CBN and will coordinate information sharing, applications, and reporting among the participating agencies through a shared supervisory technology platform.

“The Order also establishes a Virtual Asset Office, the Council’s operational body, with its secretariat domiciled at the CBN. The Office will be responsible for the day-to-day coordination of information sharing, applications, and reporting among the agencies, supported by an integrated supervisory technology platform that provides shared visibility while preserving each agency’s ownership and control of its data,” it added.

The presidency further stated that the Order does not create a new regulator or transfer powers between agencies.

It said that each institution retains its full statutory mandate and independence, and the framework coordinates their work rather than replacing it.

To provide certainty for operators and protection for the public, the presidency said the registration would follow the nature of the activity and the asset involved: activities like securities will be registered by the SEC, while payment, settlement, custody and related services involving non-security virtual assets would be registered by the CBN, with the Council resolving any case in which responsibility cannot be readily determined.

“This closes the gaps through which unregistered operators have previously escaped oversight,” it noted.

“As part of the coordinated approach, the Central Bank of Nigeria is proceeding with a regulatory sandbox for virtual assets.

“The sandbox will provide a controlled environment in which eligible operators can test and operate virtual asset products, services, and blockchain-based solutions under close supervision, enabling the participating agencies to assess the implications for monetary sovereignty, financial stability, market integrity, consumer protection, financial inclusion, and revenue administration before products reach the wider market. It will help ensure that innovations that reach Nigerians have been properly examined and supervised. The CBN will announce further details of the sandbox,” it added.

Meanwhile, the presidency disclosed that the Nigerian Revenue Service will release a tax policy for the virtual assets sector.

It explained that the policy operationalises Nigeria’s tax laws as they apply to virtual assets, providing greater certainty for taxpayers and service providers, strengthening voluntary compliance, and ensuring that the sector contributes fairly to national revenue as it grows.

“It complements the coordination framework by aligning revenue administration with the work of the other participating authorities. The NRS will provide further details.

“The Federal Government is also finalising a comprehensive Virtual Assets White Paper, which will set out the country’s longer-term policy direction and implementation priorities and serve as a roadmap for stakeholders across the sector,” the statement revealed.

“The Council has been directed to develop a Harmonised Implementation Framework within 30 days to guide the participating agencies in giving effect to the Order and to ensure its expedited implementation.”

The Presidency disclosed that the NRS would soon release a tax policy specifically for the virtual assets sector, a move expected to formalise how digital asset transactions are taxed and boost government revenue as the sector expands. It said the policy would give clarity to taxpayers and service providers while strengthening voluntary compliance.

This is coming as Nigeria has ranked among the top countries globally in crypto adoption in recent years, with billions of dollars in transactions passing through peer-to-peer platforms — much of it currently outside the tax net.

Analysts say a clear tax framework could unlock a new revenue stream for government at a time when the country is looking to diversify away from oil earnings.

The Presidency said the CBN would proceed with a regulatory sandbox, where eligible operators can test virtual asset products and blockchain-based solutions under supervision before they reach the wider market. It said this would allow authorities to assess the implications for monetary sovereignty, financial stability and consumer protection ahead of full-scale rollout.

By assigning registration responsibility according to the nature of each asset — with the SEC handling securities-related activities and the CBN handling payment, settlement and custody services — the government said it was aiming to give operators regulatory certainty, which could encourage more formal investment into the sector and attract fintech and blockchain players currently operating in legal grey areas.

The Presidency noted that unregistered and fraudulent operators had exploited the previously fragmented system to defraud Nigerians, costing families their savings. It said the new coordinated framework, backed by a shared supervisory technology platform, would close the gaps that allowed such operators to escape oversight, a move economists say could help restore public trust in digital finance.

The Presidency said the Council had been directed to develop a Harmonised Implementation Framework within 30 days, while the federal government was also finalising a comprehensive Virtual Assets White Paper to guide the sector’s long-term policy direction.

The Order was signed pursuant to Section 5 of the 1999 Constitution (as altered) and took effect immediately.