Key Highlights
- Nigeria’s Senate moves to regulate crypto by making exchanges and crypto companies get licenses and follow its rules.
- Lawmakers argue the framework could reduce fraud, improve tax collection, and bring greater transparency to the sector.
- The proposal reflects a broader trend across Africa as countries such as Kenya, South Africa, and Ghana move toward clearer crypto regulations.
Nigeria’s Senate has taken another step toward regulating the country’s cryptocurrency industry. On Tuesday in Abuja, lawmakers advanced the Virtual Asset Service Providers (VASP) Regulation Bill, 2026 to its second reading.
According to a local report, this bill is sponsored by Deputy Senate President Jibrin Barau and seeks to bring crypto exchanges, wallet services, and other digital platforms under a formal regulatory framework.
Nigeria seeks to close regulatory gaps
Nigeria remains one of Africa’s largest crypto markets, but still loosely controlled when it comes to being regulated. People trade, invest, and build digital businesses, but many of these activities are not fully tracked or controlled by regulators.
Lawmakers say this is a problem because it means the country is losing money, jobs, and tax revenue. They also warn that without rules, bad actors can take advantage of the system.
The new bill is trying to fix that. It would require all crypto service providers to get a license before they can operate. The framework would also introduce rules on transparency, reporting, and compliance. This means companies will need to show how they operate, who their users are, and how money moves through their systems.
Lawmakers warn of underground market risks
Senator Tahir Monguno, presenting the bill on behalf of Barau, said Nigeria is falling behind other African countries in regulating digital finance, even though it has one of the highest levels of crypto use. Lawmakers that are supporting the bill believe crypto is now part of the global economy and cannot be ignored.
One senator summed it up bluntly: “First, the market goes underground into a black economy. Second, it remains opaque and vulnerable to criminal activities. Third, it undermines the contribution of the digital economy to President Tinubu’s $1 trillion economy target.”
Furthermore, supporters said this bill is about balancing control and opportunity. The sponsor said, “This bill does not seek to stifle innovation… rather, it aims to create clear rules that promote order, confidence, accountability and consumer protection.”
Senate members voice support
Senator Natasha Akpoti-Uduaghan said many tech entrepreneurs are leaving Nigeria because they cannot properly run their businesses here. She pointed out that some digital platforms, like online gaming services, struggle to operate locally because the needed systems and regulations are not in place. She said this is causing Nigeria to lose important investment opportunities.
Other senators supported the bill but also called for caution. Senator Adams Oshiomhole said the bill is simple and necessary and should move forward. Senator Adetokunbo Abiru added that the new rules must match existing financial laws like BOFIA and the Investments and Securities Act so that there is no confusion between regulators.
What happens next?
After the debate, the Senate sent the bill to the Committee on Capital Market for further review. The committee is expected to report back in four weeks. If ultimately approved, Nigeria would join countries including Kenya, South Africa, and Ghana in implementing dedicated regulatory frameworks for cryptocurrency businesses.
The move also comes amid broader efforts across Africa to establish clearer rules for digital assets. In May 2026, lawmakers in Kenya proposed measures that would require crypto platforms to verify users, report transactions, and share tax-related information with authorities.
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