Nigeria’s Senate has passed the Virtual Asset Service Providers Regulation Bill, 2026, on its second reading, marking a major step toward formal oversight of the country’s booming cryptocurrency sector. The bill, listed as SB 956, was sponsored by Deputy Senate President Barau Jibrin and presented by Senate Chief Whip Mohammed Monguno. It now moves to the Senate Committee on Capital Market for further review, possible amendments, and public input before a third reading and final approval.
The legislation seeks to establish a comprehensive legal and regulatory framework for virtual assets and digital asset service providers. Under its provisions, crypto exchanges and other virtual asset service providers would be required to obtain licenses, comply with transparency and anti-money laundering rules, and implement counter-terrorism financing controls. Lawmakers emphasized that the current regulatory gap has left significant activity outside official oversight, making it harder to track investments, jobs, and revenue.
The bill aligns with international standards, including recommendations from the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). Its supporters argued that clear rules would boost investor confidence, attract institutional investment, and curb illicit activity, while not stifling innovation. The move comes as Nigeria, one of the world’s most active crypto markets by adoption, seeks to catch up with regional peers like Kenya, South Africa, and Ghana, which have already developed related frameworks.
Lawmakers also linked the legislation to President Bola Tinubu’s goal of growing Nigeria into a $1 trillion economy, arguing that unregulated crypto activity limits the digital economy’s official contribution. If enacted, the bill would increase compliance duties for exchanges but could provide a more predictable environment for legitimate firms to operate and expand.
