Nigerian president signs order on approach to crypto regulation, taxesThe West African country’s executive order established a virtual asset council and addressed the fragmentation of crypto regulation for oversight and enforcement.
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Nigerian President Bola Ahmed Tinubu has signed an executive order aimed at harmonizing the regulation of digital assets in Nigeria. According to his special adviser, Bayo Onanuga, the order addresses what was described as fragmentation in the country’s crypto regulation by fostering cooperation among financial, revenue, and capital markets agencies. It establishes a virtual asset council led by top financial regulators to guide policy and instructs the Nigerian tax authority to update its digital asset tax policies. The order does not create a new regulator nor transfer powers between agencies; instead, it seeks to coordinate existing mandates, requiring registration aligned with the type of activity and asset involved to close regulatory gaps that previously allowed some operators to avoid oversight.
Nigeria has experienced significant growth in digital asset usage, especially in cryptocurrencies and stablecoins, which highlights the importance of the new regulatory framework. The International Monetary Fund (IMF) reported that since 2019, Nigeria accounted for about 60% of stablecoin inflows in sub-Saharan Africa and had approximately $59 billion in crypto inflows between July 2023 and June 2024. The IMF noted that Nigeria’s regulatory challenge is to reduce the attractiveness of informal cross-border payment workarounds while managing associated risks through a clear strategy that balances innovation with sound macroeconomic policy and effective regulation.
The Nigerian Revenue Service, the country’s tax authority, has already begun reforming its approach to digital assets. In January, it was announced that under the Nigeria Tax Administration Act, crypto service providers must link transactions to tax identification numbers and, in certain cases, national identification numbers. The executive order reiterates that further details on tax implications for taxpayers will be provided by the revenue service. This move is part of the broader effort to bring greater transparency and accountability to crypto operations in Nigeria.