President Bola Ahmed Tinubu has signed the Presidential Executive Order on Virtual Assets Coordination, 2026, introducing a coordinated regulatory framework for virtual assets aimed at strengthening oversight, protecting consumers, and supporting responsible innovation in Nigeria's digital asset ecosystem.

The Executive Order, signed pursuant to Section 5 of the Constitution of the Federal Republic of Nigeria, takes immediate effect and seeks to address regulatory fragmentation as virtual assets increasingly overlap traditional financial, capital market, and payment systems.

New Framework to Strengthen Regulatory Coordination

According to the Federal Government, the Order responds to growing challenges created by separate regulatory oversight across agencies, which has left gaps that expose the country to risks including money laundering, terrorism financing, cybersecurity threats, fraud, data privacy breaches, and revenue losses.

Rather than creating a new regulator, the framework establishes stronger coordination among existing institutions while preserving their individual statutory responsibilities.

To achieve this, the Order establishes a Virtual Asset Council, chaired by the Central Bank of Nigeria (CBN), with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice-chairs. Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

The Council will provide policy direction, promote collaboration among participating agencies, and work alongside the Attorney-General of the Federation to develop a harmonised legal and institutional framework aligned with Nigeria's economic, financial, and national security objectives.

Virtual Asset Office to Coordinate Operations

The Executive Order also establishes a Virtual Asset Office, which will serve as the operational arm of the Council. The office will be domiciled at the Central Bank of Nigeria and will oversee information sharing, application processing, reporting, and inter-agency coordination through an integrated supervisory technology platform.

The platform is expected to improve regulatory visibility while allowing each participating agency to retain ownership and control of its respective data.

Existing Regulators Retain Their Mandates

The Federal Government clarified that the framework does not transfer regulatory powers between agencies or introduce additional regulatory layers.

Instead, regulatory responsibility will continue to depend on the nature of the virtual asset activity.

Under the framework, virtual assets that qualify as securities will remain under the oversight of the SEC, while payment, settlement, custody, and other non-security virtual asset services will be regulated by the CBN. Where jurisdiction is unclear, the Virtual Asset Council will determine the appropriate regulator.

The government said this coordinated approach is intended to eliminate regulatory gaps previously exploited by unregistered operators.

CBN to Launch Regulatory Sandbox

As part of the new framework, the Central Bank of Nigeria will introduce a regulatory sandbox for virtual asset products and blockchain-based solutions.

The sandbox will allow eligible firms to test new products and services within a controlled regulatory environment, enabling authorities to assess their impact on financial stability, consumer protection, monetary policy, financial inclusion, and market integrity before broader deployment.

The CBN said additional details on the sandbox will be announced separately.

NRS to Introduce Virtual Assets Tax Policy

The Nigeria Revenue Service will also publish a dedicated tax policy for the virtual assets sector.

According to the government, the policy will provide greater certainty on the application of Nigeria's tax laws to digital assets, strengthen voluntary compliance, and ensure the sector contributes appropriately to national revenue as adoption grows.

Government Preparing Long-Term Virtual Assets Strategy

The Federal Government disclosed that it is finalising a comprehensive Virtual Assets White Paper, which will outline Nigeria's long-term policy direction for the sector and provide implementation guidance for industry stakeholders.

Meanwhile, the newly established Virtual Asset Council has been directed to develop a Harmonised Implementation Framework within 30 days to guide participating agencies and accelerate the implementation of the Executive Order.