- Published on
Nigerian president signs order on approach to crypto regulation, taxes
- Authors
- Name
- DeepHorus
Nigerian President Bola Ahmed Tinubu signed an executive order on Friday to harmonize the regulation of virtual assets across the country's financial agencies. The move aims to address fragmentation in oversight and enforcement, protecting citizens from fraud while enabling responsible innovation. The order also establishes a virtual asset council comprising top financial regulators to direct related policies.
Nigeria has witnessed some of the strongest digital asset adoption in Africa, particularly in stablecoins and cryptocurrencies. According to a June report from the International Monetary Fund (IMF), the country accounted for approximately 60% of stablecoin inflows in sub-Saharan Africa since 2019. Between July 2023 and June 2024, Nigeria recorded about $59 billion in crypto inflows, highlighting the growing importance of digital assets in the economy.
The executive order does not create a new regulator or transfer powers between agencies, according to presidential aide Bayo Onanuga. Each institution retains its full statutory mandate and independence, with the framework coordinating their work rather than replacing it. Registration will follow the nature of the activity and the asset involved, closing gaps that previously allowed unregistered operators to escape oversight.
The Nigerian tax authority, the Nigerian Revenue Service, is directed to update its policies on digital assets as part of the order. Already in January, authorities announced that under the Nigeria Tax Administration Act, crypto service providers must link transactions to tax identification numbers and, in some cases, national identification numbers. The tax agency will provide additional details on the effects on taxpayers.
The IMF commented on Nigeria's stablecoin adoption, stating that the policy challenge is to narrow the gap that made cross-border payment workarounds attractive while ensuring new risks remain contained. They emphasized the need for a clear strategy open to innovation but anchored in sound macroeconomic policy and effective regulation. The executive order aligns with this perspective by providing a coordinated regulatory framework.
Looking ahead, the virtual asset council will play a key role in shaping Nigeria's digital asset policies. The order provides certainty for operators and protection for the public, fostering an environment where responsible innovation can thrive. As the tax authority updates its approach, stakeholders will watch how the harmonized regulation impacts the growing crypto sector. The framework could serve as a model for other African nations grappling with digital asset regulation.
