Tinubu creates Virtual Asset Council to regulate crypto

President Bola Tinubu signed an executive order on July 17 to regulate virtual assets in Nigeria, establishing a Virtual Asset Council to coordinate government agencies and increase oversight of unregistered operators. The order takes effect immediately and aims to reduce fraud, money laundering and the financing of terrorism.

The Virtual Asset Council will be the main policymaking and coordination body for the sector. The Central Bank of Nigeria (CBN) will chair the council, with the Nigeria Revenue Service and the Nigeria Securities and Exchange Commission (NSEC) serving as vice chairs. The council will also include representatives from the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser.

A Virtual Asset Office will be created within the CBN to run day-to-day operations and share information across agencies. The office will use a shared technology platform to support coordination and reduce overlaps between regulators. The government says the order does not create a new standalone regulator or remove powers from existing agencies.

Registration and oversight duties will be split by asset type. Activities that involve securities will fall under the NSEC, while the CBN will regulate payments, settlements and custody services for non-security virtual assets. Officials expect the division to clarify responsibilities and close regulatory gaps that have allowed unregistered and fraudulent operators to operate.

The CBN will open a regulatory sandbox to allow approved firms to test virtual asset products and blockchain services under supervision before a wider public launch. The Nigeria Revenue Service plans to introduce a tax policy specific to virtual assets aimed at encouraging voluntary compliance.

The Virtual Asset Council has 30 days to set a framework for implementing the executive order. The government is also finalizing a Virtual Assets White Paper to outline longer-term policy and strategy for the sector.

Bayo Onanuga, the president’s special adviser on information and strategy, warned that agencies operating in silos had left gaps regulators needed to close. He cited cases where fraudulent operators exploited those gaps and caused losses to families.

Officials say the order directs existing financial agencies to operate from a common framework while preserving each agency’s independence. The administration presented the measure as a tool to improve enforcement and create clearer rules for operators and consumers.