New framework brings CBN, SEC, NRS and security agencies under a single coordination system to strengthen oversight, curb fraud and drive innovation
President Bola Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, 2026, introducing a new framework designed to streamline the regulation of Nigeria’s fast-growing virtual assets sector and strengthen oversight across government agencies.
The Executive Order, signed under Section 5 of the 1999 Constitution (as amended), takes immediate effect and establishes a coordinated regulatory structure aimed at tackling fraud, closing oversight gaps and supporting responsible innovation within the country’s digital economy.
According to a statement issued on Friday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the new framework is intended to address the fragmented regulatory landscape that has emerged as cryptocurrencies and other virtual assets increasingly overlap with traditional financial products.
The Presidency said the absence of coordinated oversight had exposed the country to risks such as money laundering, terrorism financing, cybercrime, data privacy breaches, financial fraud and significant revenue losses.
It noted that regulatory loopholes have also enabled fraudulent operators to exploit unsuspecting Nigerians, leading to substantial financial losses for many individuals and families.
To improve coordination, the Executive Order establishes a Virtual Asset Council, which will be chaired by the Central Bank of Nigeria (CBN). The Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) will serve as vice-chairpersons, while the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA) will also be represented.
The Council will provide strategic policy direction, promote collaboration among participating agencies and work alongside the Attorney-General of the Federation to develop a unified legal and institutional framework that aligns with Nigeria’s economic, security and social priorities.
The Order also creates a Virtual Asset Office, which will serve as the Council’s operational arm, with its secretariat domiciled at the CBN.
According to the Presidency, the office will coordinate information sharing, applications and reporting among the relevant agencies through an integrated supervisory technology platform. The system is expected to improve transparency while allowing each institution to retain ownership and control of its own data.
The government stressed that the Executive Order does not establish a new regulator or strip existing agencies of their statutory powers.
Instead, it said each institution will continue to perform its legally assigned responsibilities while operating within a coordinated framework designed to eliminate duplication and close regulatory gaps.
Under the new arrangement, the SEC will remain responsible for registering virtual asset activities involving securities, while the CBN will oversee payment, settlement, custody and other services related to non-security virtual assets.
Where jurisdictional questions arise, the Virtual Asset Council will determine the appropriate regulatory authority to ensure no operator falls outside government oversight.
As part of the new framework, the CBN is also moving ahead with plans to introduce a regulatory sandbox for the virtual assets industry.
The sandbox will allow eligible companies to test cryptocurrency products, blockchain applications and other digital asset services in a controlled environment under regulatory supervision before they are introduced into the wider market.
The Presidency said the initiative will enable regulators to assess potential impacts on financial stability, monetary policy, consumer protection, market integrity, financial inclusion and government revenue before granting broader market access.
Further details of the sandbox are expected to be announced by the apex bank.
In addition, the Nigeria Revenue Service will introduce a dedicated tax policy for the virtual assets sector to provide greater certainty for businesses and investors, improve tax compliance and ensure the industry’s growth contributes to national revenue.
The Federal Government also disclosed that work is nearing completion on a comprehensive Virtual Assets White Paper, which will outline Nigeria’s long-term policy direction and implementation strategy for the sector.
Meanwhile, the newly established Virtual Asset Council has been directed to produce a Harmonised Implementation Framework within 30 days to guide participating agencies and facilitate the swift implementation of the Executive Order.
Nigeria remains one of the world’s leading markets for cryptocurrency adoption by transaction volume, despite years of evolving regulatory policies.
In 2021, the CBN instructed commercial banks to close accounts linked to cryptocurrency transactions, effectively pushing much of the market outside the formal banking system. However, the bank reversed that position in 2023 by introducing a regulatory framework for virtual asset service providers, while the SEC has continued efforts to regulate digital asset exchanges operating in the country.
