Barau’s Digital Assets Bill Signals Nigeria’s Shift Toward a Regulated Crypto Economy

The Deputy President of the Senate, Senator Barau I. Jibrin, has once again demonstrated his commitment to forward-looking economic reforms with the sponsorship of a bill seeking to establish a comprehensive legal, regulatory and supervisory framework for virtual assets and digital asset service providers in Nigeria.

The proposed legislation, titled “A Bill for an Act to Establish a Comprehensive Legal, Regulatory and Supervisory Framework for Virtual Assets and Digital Asset Service Providers Operating within the Federal Republic of Nigeria and for Related Matters, 2026,” successfully scaled second reading in the Senate on May 9, 2026, receiving overwhelming support from lawmakers present during plenary.

The bill represents a significant policy shift in Nigeria’s approach to digital assets, moving from restrictions and uncertainty toward a structured regulatory framework that promotes innovation while safeguarding the financial system.

Leading the debate on behalf of Senator Barau, who presided over the session in his capacity as Deputy Senate President, Senate Chief Whip Senator Mohammed Tahir Monguno highlighted the importance of establishing clear rules for an industry that has become increasingly relevant to Nigeria’s economy.

Nigeria ranks among the world’s leading adopters of virtual assets, yet the sector has operated largely without a comprehensive legal framework. Senator Barau explained the motivation behind the legislation in a statement shared on his Facebook page.

“The world over, virtual assets—from cryptocurrency to blockchain-based tokens—have become an integral part of modern economic life, and Nigeria ranks among the top users of virtual assets globally,” he stated.

“Yet, there exists a lacuna in terms of a comprehensive regulatory legal framework in this very important sector. While innovation in the sector has surged, regulation has lagged. The bill therefore seeks to close this yawning gap with a legal framework that will ensure that those within the sector are compliant with laws designed to protect the public and the financial system.”

Analysts believe the proposed legislation could unlock substantial economic opportunities for Nigeria. Industry statistics indicate that Nigerians conducted an estimated $92.1 billion in virtual asset transactions between July 2024 and June 2025. A regulated environment could enable the government to expand its tax base through digital asset-related transactions while encouraging greater compliance and transparency.

The bill is also expected to boost investor confidence by creating clear operational guidelines for digital asset businesses. With a defined legal framework, banks, venture capital firms and international exchanges may be more willing to engage with Nigerian digital asset companies, potentially attracting increased foreign investment into the country’s technology ecosystem.

Under the proposed law, Virtual Asset Service Providers (VASPs) would be required to obtain licenses and comply with Know Your Customer (KYC), cybersecurity and client asset protection standards. Licensed operators would also be required to maintain records for seven years and adhere to strict reporting obligations.

The legislation further seeks to strengthen anti-money laundering and counter-terrorism financing efforts by mandating registration with the Nigerian Financial Intelligence Unit (NFIU) and requiring the reporting of suspicious transactions.

Another key provision addresses banking access for compliant operators. Licensed VASPs would be able to operate designated bank accounts under guidelines issued by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), helping to resolve longstanding challenges faced by legitimate operators in the sector.

Supporters of the bill argue that a regulated digital asset ecosystem will reduce fraud, provide greater consumer protection, improve transparency and position Nigeria as a leading hub for digital finance and blockchain innovation in Africa.

Beyond its economic implications, the legislation reflects growing recognition within Nigeria’s policymaking circles that emerging technologies and digital finance will play a critical role in shaping the country’s future competitiveness in the global economy.

If eventually passed into law, the bill could mark a defining moment in Nigeria’s digital transformation journey, providing a framework that balances innovation, investor protection, national security and sustainable economic growth.