Nigeria Unveils Major Crypto Reform and Virtual Asset Council

Nigeria establishes the Virtual Asset Council (VAC) to unify crypto oversight, curb fraud, and attract institutional investors to Africa's largest market.

Nigeria has launched its most extensive crypto sector reform to date, aiming to unify institutional oversight, reduce fraud, and build a more attractive environment for institutional investors within Africa’s largest cryptocurrency market.

Central Bank to Lead Coordination

Signed on July 17, the “Presidential Executive Order on Virtual Assets Coordination, 2026” establishes the Virtual Asset Council (VAC). This new body will coordinate policies and supervise the digital asset market.

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

A specialized Virtual Assets Bureau will also be established under the central bank. This office will manage daily inter-institutional coordination, information exchange, and market surveillance through a unified technological platform.

Distributed Regulatory Framework

Rather than creating a single new regulator, the framework coordinates the activities of existing institutions. Companies will be licensed based on the specific nature of the services they provide.

The SEC will regulate tokens and activities classified as securities. Meanwhile, the Central Bank and other relevant authorities will oversee virtual assets used for payments, settlements, and custody services.

The government stated that the primary goal is to eliminate overlapping regulatory regimes, simplify market oversight, and strengthen enforcement against fraud and unregistered operators.

Regulatory Sandbox and New Tax Policy

As part of the reform, the Central Bank will develop a specialized regulatory sandbox. This environment will allow companies to test blockchain and crypto services under regulatory supervision before they are cleared for the broader market.

Simultaneously, the Nigerian Revenue Service is set to design a specific tax policy for virtual assets. This initiative aims to clarify tax obligations for market participants and integrate the crypto economy into the state’s revenue system.

The Virtual Asset Council has 30 days to draft a unified framework for implementing these rules. Following this, the government plans to publish a National White Paper on Virtual Assets, outlining the country’s long-term strategy.

Nigeria Targets Institutional Capital

This executive order marks Nigeria’s most significant step toward a coherent regulatory framework for digital assets. After years of inconsistent approaches to cryptocurrency, the government is now attempting to balance stricter oversight with innovation. As Africa’s dominant crypto hub, Nigeria is positioning itself to lead the continent in shaping digital asset regulatory standards.

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