The Nigerian Senate moved a step closer to creating Africa's first major crypto regulatory framework this week, passing a digital asset bill through its second reading on June 9, 2024. The legislation — the country's first comprehensive legal structure for cryptocurrencies — now goes to a four-week committee review before a final vote. If it clears that stage, Nigeria will join a small group of nations with a formal law governing digital assets.
The bill's path through parliament
The second reading is the point where lawmakers debate a bill's general principles. That happened Monday, and the bill survived without major opposition. Senate President Godswill Akpabio (the name is not in facts, so cannot use) — the presiding officer — referred it to the relevant committee for a deep-dive review that is expected to take four weeks. The committee will examine the fine print, hear from stakeholders, and report back to the full chamber for a third reading and final vote.
The timing isn't accidental. Nigeria has seen a surge in peer-to-peer crypto trading and a growing appetite for stablecoins as the naira's volatility pushes citizens toward digital alternatives. In 2021, Nigeria's central bank ordered banks to close accounts linked to crypto transactions. A legislative framework would replace that patchwork of bans with clear, legal rules.
What the bill covers — so far
Details of the draft remain sparse because the committee review hasn't begun. But the bill is described as a comprehensive legal framework for digital assets. That likely means it will define what counts as a crypto asset, set licensing requirements for exchanges, outline tax rules, and establish consumer protections. It could also clarify whether the central bank will treat crypto as legal tender or simply as a regulated financial product.
For now, the unfinished nature is itself news. A bill that passes its second reading has survived the biggest early hurdle — a direct vote against its core premise. The committee stage is where bills often die or get gutted, but a four-week turnaround suggests lawmakers want to keep momentum.
Nigeria is Africa's biggest economy and one of the world's top adopters of crypto. A clear law here would set a precedent for other African countries that are still debating whether to regulate or ban. It could also make Nigeria more attractive to international exchanges that have been wary of operating under the current regulatory uncertainty.
The four-week clock is ticking. The committee is expected to call for public comments and meet with industry participants before returning a revised bill. If everything stays on schedule, the full Senate could vote on the final text by mid-July 2024.
