Bola Tinubu Signs Executive Order to Regulate Nigeria’s Crypto Market

Bola Tinubu Signs Executive Order to Regulate Nigeria’s Crypto Market

Nigeria’s President Bola Tinubu has taken significant steps to enhance the regulation of the country’s rapidly expanding crypto market by signing an executive order aimed at addressing regulatory loopholes. This action comes in light of a reported $59 billion in cryptocurrency inflows from July 2023 to June 2024, as noted by the International Monetary Fund (IMF).

Executive Order Details

The executive order focuses on coordinating oversight among existing financial regulatory agencies rather than establishing a new regulatory entity. The directive is designed to reinforce registration and tax compliance among virtual asset firms while ensuring that the legal powers of current regulators remain intact.

Signed on Friday, the order will facilitate a unified framework for overseeing digital assets across Nigeria’s financial, tax, and capital market sectors. Bayo Onanuga, a special adviser to the president, stated that the framework seeks to protect users from fraud, bolster responsible innovation, and maintain financial stability.

Formation of a Virtual Asset Council

Instead of creating a new oversight body, the executive order establishes a virtual asset council led by senior financial regulators. This council will help shape policy and close gaps that have allowed unregistered entities to operate unchecked. Onanuga emphasized that this approach facilitates collaboration without undermining each institution’s authority.

Registration and Compliance Requirements

Businesses will face registration requirements tailored to their specific services, making it more difficult for companies to slip through the cracks of regulatory oversight. The Nigerian Revenue Service is also expected to provide more guidance on how this new order will affect taxpayers. While it does not introduce new tax rates, the enforcement of existing tax regulations will now fall under this coordinated oversight.

Legislative Developments

Parallel to the executive order, the Nigerian Senate is progressing on the Virtual Asset Service Providers Regulation Bill, 2026, which aims to impose licensing and compliance requirements on crypto exchanges and virtual asset businesses catering to Nigerian consumers. This bill has advanced to the Senate Committee on Capital Market for further review.

Impact of Stablecoins

The growth in crypto usage, particularly stablecoins, has prompted Nigeria’s government to clarify its regulatory stance. The IMF has highlighted Nigeria’s significant share of stablecoin activity in sub-Saharan Africa, attributing the rise to household and small business reliance on U.S.-dollar-pegged tokens for various financial transactions.

The IMF cautions that the increased adoption of stablecoins is testing Nigeria’s existing monetary frameworks, urging policymakers to balance innovation with regulatory compliance.“It is also testing the limits of existing monetary and regulatory frameworks,” the IMF stated in its report.

With the signing of this executive order, President Tinubu aims to streamline Nigeria’s crypto oversight infrastructure, aligning with best practices while addressing the needs of a burgeoning market.