Nigeria’s President Signs Executive Order to Tighten Oversight of Virtual Assets

Nigerian President Bola Tinubu has signed an executive order to regulate virtual assets, seeking to unify oversight and shield the public from fraud amid what officials describe as a fragmented supervisory landscape. The government announced the move on July 17, and said the order takes effect immediately. Officials said the directive aims to close regulatory gaps, curb money laundering and prevent terrorism financing, while avoiding additional bureaucracy and preserving the independence and mandates of existing financial authorities. Bayo Onanuga, the president's special adviser on information and strategy, said agencies have been operating in silos, creating overlaps in some areas and leaving gaps in others. He said those gaps have been exploited by fraudulent operators, resulting in losses for families. The decree creates a Virtual Asset Council as the main policymaking and coordinating body. The Central Bank of Nigeria (CBN) will chair the council, with the Nigeria Revenue Service and the Nigeria Securities and Exchange Commission (NSEC) serving as vice chairs. The council will also include representatives from the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser. A Virtual Asset Office will be established within the CBN to manage day-to-day operations and facilitate information sharing through a shared, integrated technology platform. Onanuga said the order does not establish a new regulator or remove responsibilities from current agencies. Instead, registration oversight will be divided by asset type: virtual-asset activities linked to securities will fall under the NSEC, while payments, settlements and custody services for non-security virtual assets will be overseen by the CBN. In parallel, the central bank plans to introduce a regulatory sandbox allowing eligible operators to test virtual-asset products and blockchain solutions under close supervision before wider rollout. The Nigeria Revenue Service also plans to release a dedicated tax policy for the sector to encourage voluntary compliance. The Virtual Asset Council has 30 days to set up the framework needed to implement the executive order. The government said it is also finalizing a broader Virtual Assets White Paper outlining its long-term strategy for the industry.