President Bola Ahmed Tinubu has signed a landmark Executive Order aimed at establishing a comprehensive regulatory framework for cryptocurrencies and virtual assets in Nigeria. This decisive action formalizes the government’s commitment to fostering innovation while safeguarding the financial system, protecting investors, and curbing illicit activities.
The Executive Order builds on earlier initiatives, including the establishment of the Virtual Asset Regulatory Council (VARC) and the designation of the Central Bank of Nigeria (CBN) and Nigeria Revenue Service (NRS) as joint Virtual Asset Regulatory Authority (VARA) for non-security virtual assets. It also complements the Securities and Exchange Commission’s (SEC) oversight of virtual assets classified as securities under the Investments and Securities Act 2025.
Key provisions of the Executive Order include: Clear guidelines for the licensing and operation of Virtual Asset Service Providers (VASPs), including exchanges, custodians, and payment processors. Enhanced Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures aligned with global Financial Action Task Force (FATF) standards.
Consumer protection mechanisms to mitigate risks associated with digital asset transactions. Promotion of responsible innovation through regulatory sandboxes, such as the SEC’s Accelerated Regulatory Incubation Programme (ARIP), which has already admitted multiple VASPs.
Integration with broader digital economy goals, including taxation of virtual asset transactions and linkage to National Identification Numbers (NIN) for compliance.
Nigeria’s virtual asset market has seen explosive growth, with formal transactions estimated at $92.1 billion between July 2024 and June 2025. This framework aims to channel this activity into the formal economy, boost tax revenues, enhance financial inclusion, and support the government’s $1 trillion economy ambition.
Quote from President Bola Ahmed Tinubu:
“Nigeria is embracing the digital future with prudence and foresight. By signing this Executive Order, we are creating a balanced regulatory environment that protects our citizens, attracts responsible investment, and unlocks the immense potential of virtual assets for economic growth. Innovation must be matched with responsibility.”
Quote from the Honourable Minister of Finance and Coordinating Minister of the Economy: “This Executive Order marks a significant milestone in our financial sector reforms. It provides the clarity the market has long sought while ensuring alignment with national security and economic objectives.”
The Presidency emphasized that the new framework distinguishes between security and non-security virtual assets, ensuring coordinated oversight without stifling technological advancement. Implementation will involve close collaboration among the CBN, SEC, NRS, and other relevant agencies.
This development reinforces Nigeria’s position as a pioneer in digital asset regulation across Africa and signals to global investors that the country offers a stable, forward-looking environment for fintech and blockchain innovations.