Nigeria Senate Sends Crypto Bill to Committee for Review

Nigeria’s Senate passed a cryptocurrency regulation bill in a second reading on June 9 and referred the measure to the Senate Committee on Capital Market. The committee has four weeks to hold public hearings and return recommendations to the full Senate.

The proposed law would require licensing for crypto exchanges, introduce investor-protection rules and strengthen oversight aimed at curbing money laundering and terrorism financing. The committee stage will allow stakeholders to propose changes before the bill returns for further readings.

Deputy Senate President Barau Jibrin announced the bill advanced after a majority voice vote. Senate Chief Whip Tahir Monguno, the bill’s sponsor, warned that the lack of a clear legal framework has exposed investors to risks and allowed illicit activity to grow, and he argued the bill addresses current market realities.

Senators noted that Nigeria has one of the world’s most active crypto markets, with millions using bitcoin and other digital assets for savings, remittances and everyday payments. Lawmakers said rapid growth has largely occurred without formal rules, leaving users open to fraud, cybercrime and market manipulation.

Ogun Central Senator Shuaib Salisu cautioned that failing to regulate the sector could push activity into opaque, black‑market channels. Senator Adetokunbo Abiru called for the bill to be aligned with existing financial laws to avoid overlapping regulation, while Senator Oyelola Ashiru questioned why Nigeria lags behind peers such as Kenya, South Africa and Ghana in creating legal frameworks for virtual assets.

Industry and civil‑society figures criticized earlier policy reversals. Rume Ophi, co‑convener of Decentralised Nigeria and programs lead at VASPA, described the February 2021 Central Bank of Nigeria ban on bank crypto services as a five‑year setback and urged lawmakers to follow through on President Bola Tinubu’s commitments to attract investment and builders into the sector. “We wasted five years,” Ophi said, adding that clearer rules could help bring investors and developers.

If the committee returns the bill with changes, it will go back to the full Senate for further debate and possible passage. Lawmakers said the public hearings will gather input from exchanges, consumer groups, banks and law‑enforcement agencies. The timetable for final enactment and the details of how regulators would implement the law remain unsettled.