Nigeria's President Bola Tinubu signed an executive order this week creating a Virtual Asset Council, a new body tasked with regulating the country's estimated 20-25 million crypto users under a single framework. The move marks a shift from the fragmented oversight that has characterized Nigeria's digital asset space, where multiple agencies have claimed jurisdiction.
A unified approach for a crowded market
Nigeria has one of the highest crypto adoption rates globally, but regulatory clarity has lagged. The Central Bank of Nigeria had previously restricted banks from servicing crypto firms, while the Securities and Exchange Commission attempted to classify digital assets as securities. The new council is expected to harmonize these conflicting stances. The executive order, dated July 20, 2026, gives the council authority to set licensing requirements, enforce anti-money laundering rules, and coordinate with financial regulators.
What the council will do
The Virtual Asset Council will act as a coordinating body, bringing together representatives from the central bank, the SEC, the financial intelligence unit, and other agencies. Its mandate includes developing a coherent policy for virtual asset service providers, setting standards for custody and exchange operations, and ensuring compliance with international anti-money laundering norms. The order does not specify the council's membership or leadership, leaving those details to be filled in the coming weeks.
Industry reaction
Local crypto exchanges and blockchain associations have welcomed the move, though they await details. The timing is notable: Nigeria has been grappling with a weakening naira and high inflation, pushing more citizens toward stablecoins and peer-to-peer trading. A clear regulatory path could either legitimize the sector or impose new constraints. The executive order itself does not include penalties or enforcement mechanisms, leaving those to the council's rulemaking.
The executive order takes effect immediately, but the council still needs to be staffed and operationalized. Observers will watch for the first set of rules and how they treat decentralized finance versus centralized exchanges. The government has not set a deadline for the council's first report. For now, Nigeria's crypto users are in a wait-and-see mode, hoping the council moves quickly to issue guidance rather than taking a slower, more deliberative approach.
