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From Adesuwa Tsan, Abuja
A bill that would significantly reshape Nigeria’s cryptocurrency and digital asset industry by introducing a legal framework for the regulation of virtual asset service providers has scaled its second reading in the Senate.
The proposed legislation, titled the Virtual Assets Service Providers (Regulation) Bill, 2026, scaled its second reading on Tuesday after lawmakers argued that the absence of clear rules has exposed millions of Nigerians to fraud, financial losses and other risks associated with digital assets.
Leading the debate, the Deputy Senate President, Barau Jibrin, said the bill seeks to bring order, confidence and accountability to Nigeria’s growing virtual asset ecosystem without stifling innovation.
The move comes at a time when Nigeria remains one of the world’s largest markets for cryptocurrency adoption, with millions of young Nigerians using digital assets for investment, payments and business transactions.
If passed into law, the bill would require operators of cryptocurrency exchanges, blockchain-based investment platforms and other virtual asset service providers to obtain licences and comply with regulatory standards aimed at protecting consumers and the financial system.
Speaking on the intendment of the bill, the Senate Whip, Tahir Monguno, who spoke on behalf of Barau, said the lack of regulation has created loopholes that allow fraud and financial crimes to flourish.
“Yet, while innovation has surged, regulation has lagged behind. This has created loopholes that allow misuse, fraud, and financial crimes to flourish; loopholes that expose honest citizens to loss and exploitation; and loopholes that threaten the stability of our financial system,” he said.
The Deputy Senate President argued that establishing a legal framework would provide greater protection for Nigerians who participate in the digital economy and create a safer environment for investment.
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Barau stressed that the bill was not intended to discourage innovation but to ensure that operators function under clear and transparent rules.
“The intent of this Bill is simple: to bring order, confidence, and accountability into the virtual asset ecosystem. It does not seek to stifle innovation or punish creativity. On the contrary, it aims to create a fair and predictable environment where innovation can thrive under clear rules and responsible oversight,” he said.
He added that the proposed law would strengthen Nigeria’s ability to combat money laundering, terrorism financing and other illicit financial activities linked to the digital asset sector.
“This bill will ensure that those who operate as virtual asset service providers are properly licensed, transparent, and compliant with laws designed to protect the public and the financial system,” he stated.
Barau also argued that a regulated virtual asset market could boost investor confidence, attract responsible investment into Nigeria’s fintech and blockchain industries and support the Federal Government’s economic diversification agenda.
According to him, countries such as Kenya, South Africa and Ghana are already developing legal frameworks for the regulation of virtual assets.
“With the passage of this Bill, we will provide the legal clarity and confidence that innovators, entrepreneurs, and investors have long awaited,” he said.
Contributing to the debate on the bill, lawmakers argued that the legislation could offer crypto users stronger safeguards against fraudulent schemes that have proliferated in recent years, while also giving legitimate operators the legal certainty needed to attract investment and expand their businesses.
The bill was subsequently referred to the relevant Senate committee for further legislative scrutiny and a report back to the chamber.
