Nigeria Establishes Coordinated Regulatory Approach for Digital Assets

President Bola Tinubu recently announced the Presidential Executive Order on Virtual Assets Coordination, 2026, marking a significant shift in how Nigeria regulates cryptocurrency and related digital assets. This framework addresses previous challenges where different regulators oversaw overlapping parts of the market.

The new system establishes a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with key agencies like the Securities and Exchange Commission (SEC) and Nigeria Revenue Service serving as vice-chairs. The council’s role is to coordinate policy, resolve classification ambiguities, and ensure comprehensive oversight without creating regulatory conflicts.

The framework differentiates based on asset type and use case:

• Activities involving securities or investment products remain primarily under SEC jurisdiction
• CBN oversees payment services, stablecoins, custody solutions, and financial stability aspects
• Hybrid products will be classified by the Council based on their primary function

Implications for Fintech Startups

The executive order signals Nigeria’s commitment to supervised participation in the digital asset space. While offering greater clarity and legitimacy, it also raises compliance requirements:

1. Increased capital needs - Meeting regulatory thresholds requires stronger financial foundations
2. Enhanced internal controls - Robust risk management frameworks become essential
3. Greater regulator cooperation - Building relationships with both CBN and SEC will be critical

Nigeria had already begun developing licensing pathways through the SEC’s Accelerated Regulatory Incubation Programme (ARIP), which requires:

• Incorporation in Nigeria with a resident CEO
• Credible business plan demonstrating operational capacity
• Comprehensive documentation including financial records, risk management plans, and technology assessments
• Payment of a non-refundable application fee of ₦2 million

The executive order represents an important policy direction rather than a complete regulatory manual. Startups should expect ongoing developments as the Virtual Asset Council finalizes its Harmonised Implementation Framework, tax policies, and virtual-assets sandbox initiatives.