A. Introduction
Nigeria’s virtual asset regulatory landscape entered a new phase following the signing of the Presidential Executive Order on Virtual Assets Coordination, 2026 (the “Executive Order”) on 17 July 2026. The sector had developed rapidly in the preceding years but, with the relevant agencies operating in silos and with areas of regulatory overlap and uncertainty, it remained exposed to risks including money laundering, terrorism financing, cybersecurity and data privacy threats, fraud and revenue losses. Those gaps have been exploited by unregistered and fraudulent operators, to the detriment of the investing public.
Against this background, several important regulatory developments have sought to establish a stronger foundation for the supervision of virtual asset activities in Nigeria. These include the issuance of the Securities and Exchange Commission’s (“SEC”) Rules on Issuance, Offering Platforms and Custody of Digital Assets (2022); the Central Bank of Nigeria’s (“CBN”) Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (2023); the introduction of the SEC’s Accelerated Regulatory Incubation Programme (“ARIP”) in 2024; and the enactment of the Investments and Securities Act, 2025 (“ISA 2025”), which, by section 357, formally recognised digital and virtual assets as securities. While these developments have strengthened the legal and regulatory framework for virtual assets, uncertainty has remained regarding the respective roles of the various regulators, particularly where virtual asset activities cut across capital markets regulation, banking, payment systems, taxation and other related areas.
The Executive Order does not introduce regulation into an empty space. It seeks to coordinate an existing regulatory ecosystem and establishes a coordinated framework for the supervision of virtual assets, aimed at addressing regulatory fragmentation and strengthening responses to fraud, money laundering, terrorism financing, cybersecurity, data protection and revenue concerns. It seeks to strengthen cooperation among the country’s financial services, revenue and capital markets authorities, and to promote a more coherent approach to the regulation of the virtual asset sector.
The principal elements of the Executive Order are as follows:
1. Establishment of the Virtual Asset Council
The question is no longer whether virtual assets fall to be regulated in Nigeria, but which authority regulates which activity, under what rules and on the basis of what information.
The Executive Order does not create a new substantive regulator or displace existing regulatory mandates. It instead establishes a Virtual Asset Council (“VAC”), chaired by the CBN, with the Nigeria Revenue Service (“NRS”) and the SEC as vice-chairs, alongside the Nigerian Financial Intelligence Unit (“NFIU”) and the Office of the National Security Adviser (“ONSA”).
Under the Executive Order, the SEC will continue to regulate virtual assets and activities falling within the securities framework, while payment, settlement, custody and related services involving non-security virtual assets will fall within the CBN’s remit. Where jurisdiction is unclear, the VAC will determine the appropriate regulator. Businesses should therefore assess their operations on an activity-by-activity basis, rather than assume that a single regulatory regime applies to the whole of their business. The regulatory sandbox provided for under the Executive Order is considered at paragraph 3 below.
2. Establishment of the Virtual Asset Office
The Executive Order also establishes a Virtual Asset Office (the “Office”), which will serve as the operational arm and secretariat of the Council.
The Office will be domiciled at the CBN and will be responsible for:
• day-to-day inter-agency coordination;
• information sharing;
• processing applications; and
• regulatory reporting.
The Office will be supported by an integrated supervisory technology platform designed to facilitate collaboration and information sharing while preserving each participating agency’s control over its own data. This is a significant development in the regulatory architecture: the Executive Order is concerned not only with which regulator has jurisdiction, but also with how the regulators share information and supervise the sector collectively.
For businesses, this may result in greater regulatory visibility. Operators should therefore ensure that their corporate records, ownership information, transaction records, compliance documentation and regulatory reports are accurate, complete and readily accessible.
3. Regulatory Sandbox for Virtual Asset Innovation
The Executive Order further provides for a CBN regulatory sandbox for virtual asset innovation. The sandbox will provide a controlled environment in which eligible operators may test virtual asset products, services and blockchain-based solutions under regulatory supervision.
This will allow participating authorities to assess issues including monetary sovereignty, financial stability, market integrity, consumer protection, financial inclusion and revenue administration. The sandbox is particularly significant because it introduces a mechanism through which regulators can assess emerging business models before they are introduced to the wider market.
For innovative businesses, the sandbox may provide an opportunity to engage with regulators at an earlier stage. However, participation in a sandbox should not automatically be understood as a blanket authorisation to conduct unrestricted commercial activities. Businesses will need to understand the specific conditions and limitations applicable to their participation.
4. Taxation and Increased Revenue Visibility
The coordinated regulatory framework also extends to tax administration. The Executive Order directs the NRS to develop a tax policy for the virtual assets sector, with the stated objectives of operationalising Nigeria’s existing tax laws as they apply to virtual assets, providing greater certainty for taxpayers and service providers, strengthening voluntary compliance, and ensuring that the sector contributes fairly to national revenue as it grows.
In furtherance of this mandate, the NRS issued its Guidelines on the Taxation of Virtual Assets (Information Circular No. 2026/21) on 31 July 2026. Issued under the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025 and the Nigeria Revenue Service (Establishment) Act, 2025, the Guidelines establish an administrative framework for the taxation of virtual assets and related activities, including rules concerning taxpayer and virtual asset service provider (“VASP”) registration, reporting and record-keeping, valuation and computation, and the tax treatment of virtual asset transactions.
The issuance of the Guidelines represents an important development in the formalisation of the virtual assets sector and signals greater integration of virtual asset activities into Nigeria’s tax administration framework. The detailed tax treatment and compliance obligations introduced by the Guidelines are considered separately in our article on the NRS Guidelines on the Taxation of Virtual Assets.
5. The Virtual Assets White Paper
The Federal Government is also finalising a Virtual Assets White Paper, which is expected to set out the country’s longer-term policy direction and implementation priorities.
The White Paper may provide further clarity on the Government’s approach to the development, regulation and supervision of virtual assets and serve as a roadmap for stakeholders across the sector.
For businesses, the White Paper will be important in understanding the broader policy direction beyond the immediate requirements of the Executive Order.
6. The Harmonised Implementation Framework
The Council has been directed to develop a Harmonised Implementation Framework within 30 days to guide the participating agencies in giving effect to the Executive Order and to ensure its expedited implementation. That period expired on 16 August 2026, and the Framework had not been published as at the date of this article. The Framework will be particularly important: the Executive Order establishes the architecture, but its practical operation will depend on how the participating agencies implement it.
Businesses should pay particular attention to how the implementation framework addresses:
• regulatory classification;
• allocation of regulatory responsibility;
• registration and licensing;
• information sharing;
• reporting requirements;
• inter-agency coordination;
• treatment of existing operators; and
• resolution of regulatory uncertainty.
B. What Does This Mean for Businesses?
For businesses, the immediate implication is not necessarily the creation of entirely new obligations. Rather, the more significant change may be greater regulatory visibility and more coordinated enforcement.
Businesses operating in or entering the virtual asset sector should consider:
1. Reviewing their regulatory status
Businesses should determine whether their activities fall within the regulatory remit of the SEC, CBN or another participating authority, and whether additional registrations or approvals may be required.
2. Reviewing their compliance framework
Operators should assess their AML/CFT, customer due diligence, transaction monitoring, record-keeping, data protection, taxation and reporting arrangements.
3. Strengthening internal records
With increased information sharing between regulatory and enforcement institutions, businesses should ensure that their ownership, transaction, customer and compliance records are accurate, consistent and readily accessible.
4. Monitoring regulatory developments
The Executive Order should not be viewed in isolation. Businesses should continue to monitor further guidance from the CBN, SEC, NRS and other participating institutions, as well as the forthcoming Harmonised Implementation Framework and Virtual Assets White Paper.
C. Conclusion
The Executive Order represents a shift from fragmented oversight towards a more coordinated regulatory architecture. As implementation develops, regulatory uncertainty should no longer be treated as regulatory absence. Businesses that engage proactively with the emerging framework may benefit from greater clarity while contributing to a more responsible and sustainable virtual asset ecosystem in Nigeria. The increasing coordination among the NRS, CBN, SEC and the Presidency suggests a broader shift in the government’s approach to digital assets and their potential role in trade, remittances and financial inclusion.
