Nigeria’s President Bola Tinubu has issued an executive order to address unclear rules in the cryptocurrency market. The International Monetary Fund reports that between July 2023 and June 2024, around $59 billion flowed into the Nigerian crypto market.
Summary
- Tinubu’s executive order coordinates crypto oversight without creating a new regulator.
- Nigeria will tighten registration, tax reporting and supervision of virtual asset firms.
- IMF data shows Nigeria received $59 billion in crypto inflows within one year.
President Tinubu’s office announced a new plan to better coordinate how Nigeria oversees digital assets like cryptocurrencies. This plan involves the country’s financial, tax, and investment agencies working together, while still allowing each agency to use its existing legal authority.
The new directive, signed on Friday, establishes a unified set of rules for virtual assets and aims to improve collaboration between Nigeria’s financial regulators. According to presidential advisor Bayo Onanuga, this framework will safeguard users against fraud, encourage innovation that is done responsibly, and help maintain the stability of the financial system.
Instead of creating yet another independent monitoring body, we’ve established a virtual asset council comprised of leading figures from existing financial regulators. As I understand it, this council will be responsible for shaping policy and assisting agencies in closing the loopholes that have, until now, allowed some unregistered businesses to operate without proper oversight.
Each organization continues to operate with its existing legal authority and freedom, and this new system simply brings their efforts together instead of taking them over.
The rules for signing up will vary based on the service and what’s being registered, explained the presidential adviser, Onanuga. He stated that focusing regulations on specific activities will provide businesses with clearer guidelines and prevent them from dodging oversight by exploiting gaps between different agencies.
The Nigerian Revenue Service will provide further details on how this new rule impacts taxpayers. While it doesn’t change tax rates, it does mean digital asset tax enforcement will now be part of a larger, coordinated system for overseeing digital assets.
Order coordinates regulators without replacing them
Currently, Nigeria handles the oversight of cryptocurrencies by assigning different agencies to manage securities, banking, taxes, and financial crime. President Tinubu’s recent directive doesn’t change these individual responsibilities, but instead instructs the agencies to collaborate using a unified policy framework, as stated by the presidential office.
Onanuga explained that the new rules are meant to fix gaps in how things are supervised, not to shift who’s in charge. The system will require businesses to be registered based on what they do – for example, a cryptocurrency exchange, a payment app, or an investment site will each have different requirements depending on its specific services.
Alongside government actions, Nigeria’s Senate made progress on crypto rules in June by approving the Virtual Asset Service Providers Regulation Bill, 2026, after a second reading.
The proposed bill, known as SB 956, aims to regulate cryptocurrency exchanges and other virtual asset companies operating in Nigeria. It would require these businesses to obtain licenses and adhere to transparency and compliance standards. Deputy Senate President Barau Jibrin introduced the bill, and Senator Mohammed Monguno presented it for discussion.
Supporters of the bill believe that establishing clear rules and safeguards for consumers would help reduce fraud and bring more stability to Nigeria’s growing digital asset market. The proposal is now with the Senate Committee on Capital Market, where it will be examined, potentially revised, and opened for public feedback.
Just because the Senate approved the proposal on a second reading doesn’t mean it’s now law. Senate Bill 956 still needs to go through committee review, a final vote, and all other necessary steps before it can actually become law in Nigeria.
Nigeria is already taking steps to regulate cryptocurrency. Tax officials have implemented reporting rules, and lawmakers are currently debating a new bill. Starting in 2026, businesses that offer crypto services will be required to link transactions to tax and, sometimes, national identification numbers, as outlined in the Nigeria Tax Administration Act 2025.
Nigeria’s new reporting system aligns with international standards set by the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, which began on January 1, 2026. This allows authorities to gather and share information about cryptocurrency transactions that cross national borders.
Stablecoin growth increases pressure for clearer rules
Nigeria has taken regulatory steps due to the increasing popularity of cryptocurrencies and stablecoins. A recent IMF report estimated that Nigeria received roughly $59 billion in crypto assets between July 2023 and June 2024.
The IMF reports that Nigeria has received about 60% of all stablecoin transfers in sub-Saharan Africa since 2019. They say people and small businesses are increasingly using these U.S. dollar-linked tokens to receive money from abroad, pay international bills, and safeguard their savings when the Nigerian currency is unstable.
Stablecoins are now commonly used for sending money across international borders. However, the International Monetary Fund has cautioned that their increasing popularity is challenging current financial regulations and systems.
The IMF noted in its June report that current financial and regulatory systems are being stretched to their limits.
The fund suggests that policymakers need to address the issues that are driving people towards alternative payment methods, while also managing the risks that come with their increasing popularity. The IMF emphasized the need for a well-defined plan that encourages innovation in financial services, but still prioritizes strong economic principles and careful oversight.
As an analyst, I’m seeing that President Tinubu’s recent executive order tackles a key issue in the crypto space: regulation. It aims to get various government agencies working together, streamline the registration process, and improve tax enforcement – all under one umbrella. However, the specifics of how this will actually impact crypto companies and their users are still developing. We need more information from the Nigerian Revenue Service, updates on the new virtual asset council’s work, and to see how the Senate addresses SB 956 before we have a complete picture.
2026-07-20 21:26