Senate Passes Virtual Asset Regulation Bill, Seeks to Bring Crypto Under Regulatory Framework

The Senate on Tuesday passed a bill for its second reading that would establish Nigeria’s first comprehensive legal framework for cryptocurrency transactions and digital asset operations, moving to bring the fast-growing sector under regulatory oversight.

The Virtual Asset Service Providers Regulation Bill, 2026, would require crypto exchanges and service providers to obtain mandatory licenses and comply with transparency and reporting rules. If enacted, it would give regulators the power to license operators and step up efforts against fraud, money laundering and terrorism financing.

Deputy Senate President Tahir Monguno, presenting the bill on behalf of sponsor Jibrin Barau, said Nigeria’s rapid adoption of cryptocurrencies has outpaced every effort to regulate the sector — and that despite being one of Africa’s biggest markets for such transactions, the country has no coherent legal framework for it. The regulatory gap, he said, has exposed investors to risks and created room for illegal activities to thrive.

Regulation could unlock investment, lawmakers say

Several lawmakers who contributed to the debate said virtual assets are a permanent feature of the global financial system, and that Nigeria risks losing investments to other jurisdictions if it doesn’t act. Barau warned that letting the sector operate without oversight could fuel black-market transactions and undermine Nigeria’s goal of building a $1 trillion economy.

Nigeria’s regulatory architecture would be aligned with standards set by the Financial Action Task Force and the International Monetary Fund if the bill becomes law. It would also place Nigeria alongside Kenya, South Africa and Ghana, which already have formal frameworks for regulating digital asset transactions.

Contributing to the debate, Natasha Akpoti-Uduaghan said the regulatory vacuum is driving innovative businesses abroad. She pointed to her son’s experience operating a gaming platform with a large global user base — international technology firms have been reluctant to set up in Nigeria because of the uncertainty.

“The country risks losing billions of dollars in investments and thousands of employment opportunities if it fails to put in place the legal structures required to support emerging digital industries,” she said.

Adams Oshiomhole backed the proposal and urged lawmakers to fast-track it. Adetokunbo Abiru called for the legislation to be harmonised with existing financial laws, including the Investments and Securities Act and the Banks and Other Financial Institutions Act, to ensure consistency across the broader financial system.

The Senate referred the bill to the Committee on Capital Market for further work, with a four-week deadline to report back.

Sources: Business Day, NALTF, The Will