By Opeyemi Adelakun
The Senate has passed for second reading a bill seeking to establish a comprehensive legal and regulatory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs) operating in Nigeria.
Sponsored by Deputy Senate President, Barau Jibrin, the proposed Virtual Asset Service Providers Regulation Bill, 2026, aims to regulate cryptocurrency transactions, blockchain-based assets and other digital financial services.
Leading the debate, Chief Whip Mohammed Monguno said the legislation would position Nigeria to benefit from the rapidly growing digital economy while protecting citizens from fraud, money laundering and other financial crimes.
According to him, millions of Nigerians, particularly young people, are already actively involved in cryptocurrency trading, fintech innovation and blockchain technology, making regulation necessary to ensure transparency and investor protection.
Lawmakers supporting the bill argued that Nigeria has lagged behind countries such as Kenya, South Africa and Ghana in creating a clear legal framework for virtual assets.
Senator Adetokunbo Abiru, however, urged the National Assembly to harmonise the proposed law with existing financial and investment regulations to avoid overlaps.
Also speaking, Senator Natasha Akpoti-Uduaghan said the absence of clear regulations has denied Nigeria significant investment opportunities and job creation benefits in the digital economy.
Following its second reading, the bill was referred to the Senate Committee on Capital Market for further legislative work and is expected back before the chamber within four weeks.
If eventually passed and signed into law, the legislation will require virtual asset service providers to obtain licences and comply with regulations aimed at protecting investors, curbing illicit financial flows and promoting responsible innovation in Nigeria’s growing digital asset sector.
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