President Bola Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, 2026, introducing a unified framework to regulate Nigeria’s virtual assets sector. The new directive is designed to improve coordination among financial regulators, strengthen consumer protection, combat financial crime, and support responsible innovation across the country’s digital asset ecosystem.

Signed under Section 5 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), the Executive Order takes immediate effect. The federal government said the order responds to the growing complexity of virtual assets, which increasingly blur the lines between currencies, securities, commodities, and payment instruments.

Until now, multiple government agencies have regulated different aspects of the sector independently. This fragmented approach created overlaps in some areas while leaving significant regulatory gaps in others. According to the government, these weaknesses exposed Nigeria to risks such as money laundering, terrorism financing, cybercrime, data privacy breaches, fraud, and tax revenue losses.

The new framework seeks to eliminate these challenges by improving cooperation among existing regulators rather than introducing additional layers of regulation. A major feature of the Executive Order is the establishment of a Virtual Asset Council, which will coordinate policy and regulatory oversight across the sector.

The council will be chaired by the Central Bank of Nigeria (CBN), while the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) will serve as vice-chairs. Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

Working alongside the Attorney-General of the Federation, the council will develop a harmonised legal and institutional framework that aligns virtual asset regulation with Nigeria’s economic, financial, and national security objectives.

The Executive Order also creates a Virtual Asset Office, which will serve as the operational arm of the council. The office will be headquartered at the Central Bank of Nigeria and will oversee day-to-day coordination among participating agencies.

Using an integrated supervisory technology platform, the office will facilitate information sharing, application processing, and regulatory reporting while allowing each institution to retain ownership and control of its data.

The federal government emphasised that the Executive Order does not establish a new regulator or remove statutory responsibilities from existing institutions.

Instead, each agency will continue exercising its legal mandate while operating within a coordinated framework. The Securities and Exchange Commission will remain responsible for virtual assets classified as securities, while the Central Bank of Nigeria will regulate payment, settlement, custody, and other services involving non-security virtual assets.

Where regulatory responsibility is unclear, the Virtual Asset Council will determine which agency has jurisdiction. Officials believe this coordinated approach will close the loopholes that have previously allowed unregistered and fraudulent operators to evade regulatory oversight.

As part of the new framework, the Central Bank of Nigeria will introduce a regulatory sandbox for virtual assets. The sandbox will provide a controlled environment where eligible companies can test virtual asset products, blockchain solutions, and related services under close regulatory supervision before entering the broader market.

According to the government, the initiative will help regulators evaluate potential impacts on monetary policy, financial stability, market integrity, consumer protection, financial inclusion, and revenue administration before new products become widely available.

The CBN is expected to announce additional details about the sandbox in the coming weeks. The Nigeria Revenue Service will also publish a dedicated tax policy for the virtual assets industry.

The policy will clarify how Nigeria’s existing tax laws apply to virtual assets, providing greater certainty for taxpayers and service providers while encouraging voluntary compliance. It is also expected to ensure that the rapidly growing digital asset sector contributes fairly to national revenue.

Further implementation details will be released by the agency.

Beyond the Executive Order, the federal government is finalising a comprehensive Virtual Assets White Paper that will outline Nigeria’s long-term strategy for regulating digital assets and blockchain innovation.

The document is expected to provide policy guidance, establish implementation priorities, and serve as a roadmap for industry stakeholders.

Meanwhile, the newly established Virtual Asset Council has been directed to prepare a Harmonised Implementation Framework within 30 days. The framework will guide participating agencies in implementing the Executive Order and ensure the coordinated regulatory system is introduced without delay.