President Bola Tinubu has established a new council to coordinate the regulation of Nigeria’s fast-growing virtual assets market, formalising oversight of cryptocurrencies, stablecoins and digital tokens.
Under the new framework, the Central Bank of Nigeria (CBN) and the Nigeria Revenue Service (NRS) have been designated joint Virtual Asset Regulatory Authorities (VARA) for non-security virtual assets. The Securities and Exchange Commission (SEC) will retain oversight of digital assets classified as securities.
According to the Presidency, Nigerians conducted an estimated $92.1 billion in formal virtual asset transactions between July 2024 and June 2025, excluding peer-to-peer and over-the-counter trades.
Officials say the scale of activity underscores the need for stronger safeguards against money laundering, terrorism financing and consumer abuse.
The new structure creates a Virtual Asset Regulatory Council (VARC) as a strategic coordination body. It will be co-chaired by the CBN Governor and the Executive Chairman of the NRS, alongside other regulatory and enforcement agencies.
Rather than creating a standalone regulator, the framework harmonises the mandates of existing institutions. It also establishes:
- A Virtual Asset Regulatory Office (VARO) to handle operational coordination for non-security assets
- Agency-based regulatory teams within participating institutions
- A Virtual Asset Sandbox to allow supervised innovation while licensing rules are phased in
The framework draws a distinction between:
- Non-security virtual assets (such as stablecoins, payment tokens and tokenised deposits) – regulated by VARA
- Security-based virtual assets – regulated by the SEC
Operators, including offshore platforms serving Nigerian users, must register, comply with Know-Your-Customer (KYC) rules, meet cybersecurity standards and adhere to reporting requirements. In return, compliant firms gain formal recognition and improved access to banking services.
The government has opted not to introduce fresh legislation for now. Instead, existing regulators will act within their current legal mandates as the system evolves.
Officials describe the coordinated model as Africa’s first operational framework dedicated to virtual assets, aimed at boosting investor confidence while supporting Nigeria’s digital economy ambitions.
With one of the continent’s highest crypto adoption rates, the administration says effective implementation will determine whether virtual assets become a catalyst for growth, or another regulatory challenge.
