Tinubu Enacts Directive to Oversee Digital Currencies and Online Investments

President Bola Tinubu has put his signature on an Executive Order that brings into being a unified framework for regulating virtual assets, a move designed to bolster the country's burgeoning digital asset landscape and shield investors from potential harm. This development is also intended to curb financial crimes and strengthen oversight in the sector.

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The Presidential Executive Order on Virtual Assets Coordination, 2026, which takes effect immediately, was signed in accordance with Section 5 of the 1999 Constitution, as disclosed by the President's Special Adviser on Information and Strategy, Bayo Onanuga, in a statement released on Friday.

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According to Onanuga, the primary goal of this order is to address the issue of regulatory fragmentation, as virtual assets often overlap with the mandates of various financial, revenue, and capital market regulators.

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The new framework is expected to enhance coordination among regulatory agencies, plug existing loopholes that fraudulent operators have been exploiting, and foster responsible innovation within the digital economy.

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Onanuga noted that the lack of coordinated oversight has exposed the country to numerous risks, including money laundering, terrorism financing, cybersecurity threats, data privacy breaches, fraud, and revenue losses.

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He added that unregistered and fraudulent operators have frequently taken advantage of these gaps, preying on unsuspecting Nigerians and causing families to lose their savings.

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To strengthen oversight, the order establishes a Virtual Asset Council, which will be chaired by the Central Bank of Nigeria, with the Nigeria Revenue Service and the Securities and Exchange Commission serving as vice-chairmen.

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Other members of the council include the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser, and the council will be responsible for providing policy direction, coordinating regulatory activities, and working with the Attorney General of the Federation to develop a harmonised legal and institutional framework for the sector.

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The executive order also creates a Virtual Asset Office, which will be located at the CBN and will serve as the operational secretariat, responsible for coordinating information sharing, processing applications, and reporting among relevant agencies through an integrated supervisory technology platform.

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Onanuga emphasized that the order does not create a new regulator or transfer statutory powers from existing institutions, and each institution will retain its full statutory mandate and independence.

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Regulatory responsibilities will continue to be determined by the nature of the virtual asset or service involved, with virtual assets classified as securities remaining under the regulation of the Securities and Exchange Commission, and payment, settlement, custody, and related services involving non-security virtual assets falling under the supervision of the Central Bank of Nigeria.

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The council will determine responsibility in cases where regulatory jurisdiction is unclear, and as part of the reforms, the CBN will introduce a regulatory sandbox that will allow eligible operators to test virtual asset products, blockchain technologies, and related services under regulatory supervision.

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According to Onanuga, this initiative is expected to help regulators assess the implications of emerging technologies for financial stability, monetary policy, consumer protection, financial inclusion, and national revenue.

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The Nigeria Revenue Service will also release a tax policy for the virtual assets sector to provide clarity on the application of existing tax laws, improve voluntary compliance, and ensure that digital asset activities contribute to government revenue.

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The Federal Government is finalising a comprehensive Virtual Assets White Paper to outline Nigeria's long-term policy direction and implementation priorities for the sector, and the newly established Virtual Asset Council has been directed to develop a Harmonised Implementation Framework within 30 days.