Nigeria’s President signs an executive order on cryptocurrency: establishes a virtual asset commission and consolidates fragmented regulation

Nigeria’s President Tinubu signed an executive order on July 18, establishing a Virtual Asset Council to coordinate cryptocurrency regulation between financial institutions, tax authorities, and the capital markets, and requiring the tax authorities to update their digital asset policies. According to an IMF June report, Nigeria accounts for about 60% of stablecoin inflows in sub-Saharan Africa.
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• Scope of authority of the Virtual Asset Council
• Growth drivers of Nigeria’s crypto market
• Early measures for tax reform

On July 18 (Friday), Nigeria’s President Bola Ahmed Tinubu signed an executive order establishing the Virtual Asset Council, consolidating the country’s long-standing fragmented cryptocurrency regulatory framework.

The President’s Special Adviser, Bayo Onanuga, explained in a national presidential palace announcement that the new framework does not establish a new regulator and does not transfer the statutory powers of existing bodies; instead, it coordinates collaboration among various financial, tax, and capital market agencies to protect the public from fraud while maintaining room for responsible innovation.

Scope of authority of the Virtual Asset Council

The newly established Virtual Asset Council is made up of the country’s top financial regulators, tasked with setting policy directions related to virtual assets. The executive order also requires Nigeria’s tax authorities—Nigeria Revenue Service—to update digital asset tax policies.

Onanuga said, “Registration will follow the nature of the activities and the types of assets involved. This closes the loophole that unregistered operators have previously used to evade oversight.”

Growth drivers of Nigeria’s crypto market

According to a June report by the International Monetary Fund (IMF), since 2019 Nigeria has accounted for about 60% of stablecoin inflows in sub-Saharan Africa. Between July 2023 and June 2024, the country’s crypto inflow totaled $59B.

The IMF noted that the policy challenge lies in narrowing the gap that makes cross-border payment channels attractive, while also controlling new risks. The organization recommended: “A clear strategy is needed: open to innovation, but anchored in sound macroeconomic policies and effective regulation.”

Early measures for tax reform

Before the executive order was issued, Nigeria’s tax authority had already announced policy reforms in January this year. Under the Nigeria Tax Administration Act, crypto service providers must link transactions to a tax identification number, and in some cases, they must also link to a national identity number.

This executive order marks a systematic upgrade of digital asset regulation in West Africa’s largest economy, aligning with global crypto regulatory trends. Neighboring South Africa has also recently proposed guidance for cryptocurrency tax rules, indicating the continent is moving toward standardized regulation.