Senate Advances Bill To Regulate Cryptocurrency, Virtual Assets In Nigeria

The Senate has passed for second reading a bill seeking to establish a comprehensive legal and regulatory framework for virtual assets, digital assets, and cryptocurrency service providers operating in Nigeria.

The proposed legislation, titled: the Virtual Asset Service Providers Regulation Bill, 2026 (SB 956), was sponsored by Deputy Senate President Barau Jibrin and presented on the floor by Chief Whip Mohammed Tahir Monguno.

Leading the debate on behalf of the sponsor, Senator Monguno said the bill was designed to position Nigeria within the rapidly evolving global digital economy while strengthening safeguards around the financial system.

“This bill speaks directly to the realities of our time, a time when technology is reshaping the global financial system and redefining how people earn, trade, save, and invest,” he said.

He noted that virtual assets, including cryptocurrencies and blockchain-based tokens, had become a major part of modern financial activity, particularly among young Nigerians.

“Today, millions of young Nigerians are already participating in this digital economy, trading, building fintech platforms, and innovating through blockchain technologies,” Monguno said.

According to him, Nigeria ranks among the top global users of virtual assets, but regulation has not kept pace with rapid technological adoption, creating risks in the financial system.

“While innovation has surged, regulation has lagged behind. This has created loopholes that allow fraud and financial crimes to flourish,” he said.

Monguno explained that the bill seeks to introduce transparency, accountability, and oversight without stifling innovation, adding that it would require virtual asset service providers to be licensed and regulated.

“The intent of this bill is simple: to bring order, confidence, and accountability into the virtual asset ecosystem,” he said.

He added that the framework would also strengthen Nigeria’s compliance with global standards set by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF), particularly in combating money laundering and terrorism financing.

Supporting the bill, Deputy Senate Leader Oyelola Ashiru questioned Nigeria’s slow pace in adopting structured regulation for the sector compared to other African countries.

“I wonder why Nigeria is always lagging behind in taking very necessary initiatives,” he said, citing Kenya, South Africa, and Ghana as examples.

Senator Adetokunbo Abiru, while supporting the bill, urged lawmakers to harmonise it with existing financial sector laws to ensure regulatory coherence.

“What I would like to suggest is that we should marry these together so that we have a holistic view of how the industry should be regulated,” he said.

Senator Shuaib Afolabi Salisu described Nigeria as a continental leader in fintech innovation, warning that weak regulation could drive the sector underground and encourage illicit activities.

“If you do not provide a regulatory framework for this sector, it will go under the table in a black market environment,” he said.

Senator Natasha Akpoti-Uduaghan also supported the bill, citing personal experience with how regulatory uncertainty has limited opportunities in digital entrepreneurship.

“There is a lot of investment in the virtual space today running into billions of dollars,” she said, adding that clearer rules would help unlock jobs and innovation.

Senator Adams Oshiomhole said the bill was necessary and straightforward, noting broad consensus among lawmakers.

“Everything that needs to be said has been said. This bill is self-evident,” he said.

Following deliberations, the bill was approved for second reading via voice vote and referred to the Senate Committee on Capital Market for further legislative work, with a four-week deadline to report back.

If passed into law, the bill would establish Nigeria’s first comprehensive framework specifically regulating virtual assets, cryptocurrency operations, and service providers in the country.