Nigeria’s President Bola Ahmed Tinubu signed an executive order on July 18 to establish the Virtual Asset Council, consolidating the country’s long-running, fragmented cryptocurrency regulatory framework. In a notice from the National Presidential Villa, the President’s Special Adviser, Bayo Onanuga, said the new framework does not create a new regulatory body and does not transfer the statutory powers of existing institutions.
Nigeria Virtual Asset Council: Establishment Structure
Onanuga said the newly established Virtual Asset Council will be made up of Nigeria’s top financial regulators. Its establishment structure has the following key features:
No new regulatory body: The executive order clearly states that the new framework will not establish a new regulatory body and will not transfer the statutory powers of existing institutions.
Cross-agency coordination: Coordinating cryptocurrency-asset regulatory cooperation among financial institutions, tax authorities, and capital markets.
Policy direction setting: The council is responsible for setting policy directions related to virtual assets.
Closing loopholes: Onanuga said, “Registration will follow the nature of the activity and the types of assets involved, which closes the loophole that unregistered operators have used to evade oversight in the past.”
Tax update requirements: The executive order requires Nigeria’s tax authority to update its digital-asset tax policies.
Nigeria data from IMF June report: 60% share of stablecoin inflows
According to an IMF June 2026 report, Nigeria has accounted for about 60% of stablecoin inflows in sub-Saharan Africa since 2019; between July 2023 and June 2024, Nigeria’s cryptocurrency inflows totaled $59 billion.
The IMF said the policy challenge lies in narrowing the gap that makes cross-border payment rails less attractive, while controlling new risks, and recommended: “A clear strategy is needed: open to innovation, but anchored by sound macroeconomic policies and effective regulation.”
First steps for tax reform: Nigeria tax authority’s January policy linking requirements to tax identification numbers
Even before the executive order was issued on July 18, Nigeria’s tax authority had already announced policy reforms in January 2026. Under the Nigeria Tax Administration Act, cryptocurrency service providers are required to link transactions to tax identification numbers, and in some cases, to national identity identification numbers.
The issuance of this executive order further strengthens the direction of the prior tax reforms, marking a systematic upgrade for Nigeria as it institutionalizes crypto regulation. South Africa has also recently proposed draft guidance for cryptocurrency taxation, indicating that the continent is moving toward standardized regulation overall.
FAQ
What is the scope of responsibilities of Nigeria’s Virtual Asset Council, and is it equivalent to a new regulatory body?
Based on comments by President’s Special Adviser Bayo Onanuga, the Virtual Asset Council is not a new regulatory body and does not transfer the statutory powers of existing institutions. Its role is to coordinate cooperation among financial institutions, tax authorities, and capital market authorities, and to set policy directions for virtual assets, while also closing the loophole that allows unregistered operators to evade oversight.
How does the IMF’s latest report assess the size of Nigeria’s cryptocurrency market?
The IMF’s June 2026 report states that Nigeria has accounted for about 60% of stablecoin inflows in sub-Saharan Africa since 2019. Between July 2023 and June 2024, Nigeria’s cryptocurrency inflows totaled $59 billion, making it one of the largest cryptocurrency markets in Africa.
What specific requirements does Nigeria’s tax authority impose on cryptocurrency service providers?
Based on the policy reforms announced by Nigeria’s tax authority in January 2026, cryptocurrency service providers must, under the Nigeria Tax Administration Act, link transactions to tax identification numbers and, in some cases, to national identity identification numbers. The executive order of July 18 further requires the tax authority to update its overall digital-asset tax policies.
