Nigeria is refusing to let crypto flows within the country operate without clear direction. President Bola Ahmed Tinubu signed an executive order on Friday, July 18, 2026, establishing a new framework to align digital asset regulations across the African continent’s most crypto-adopted nation.
The move comes amid capital flows that are difficult to ignore. According to IMF data published in June 2026, Nigeria recorded crypto inflows of up to $59 billion between July 2023 and June 2024. The country has also absorbed 60% of total stablecoin circulation in sub-Saharan Africa since 2019.
Transaction volumes of this scale have ultimately compelled the government to take swift action.
Overhauling Rules Without Dismantling Institutions
The centerpiece of the executive order is the establishment of a virtual assets council, led directly by senior Nigerian financial regulators. Its mandate spans harmonizing cross-sector regulations, strengthening inter-agency cooperation, protecting citizens from fraud, and safeguarding the integrity of the national financial system.
The government has struck a compromise in its supervisory structure. Rather than a total overhaul, the order does not create new regulatory agencies or transfer authority between institutions. Each state agency maintains independent control in line with its original mandate.
As a follow-up, the local tax authority, the Nigerian Revenue Service, is currently formulating policy updates specifically tailored to tax the digital asset ecosystem.
The new framework also targets businesses operating off the radar. The government aims to close loopholes for unregistered operators, requiring every crypto business registration to comply with classifications based on activity type and the characteristics of the assets they handle.
IMF Warnings and Data Mandates
This tightening builds on ongoing regulatory efforts. Since January 2026, authorities have required crypto service providers to link user transactions to tax identification numbers. In certain cases, platforms must also tie transactions directly to customers’ national identity numbers.
This measured regulatory approach aligns with the perspective of international financial institutions. The IMF has highlighted Nigeria’s critical position in the global crypto market, emphasizing that the populous nation requires regulations open to innovation while remaining anchored in sound macroeconomic policies.
Regulating billions of dollars flowing through an intermediary-free ecosystem is a tough test for many developing nations. Through its latest decree, Nigeria is attempting to ensure that its citizens’ crypto enthusiasm aligns with national financial stability.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
