The Nigerian Senate has advanced a bill that would create legal regulations for crypto firms and virtual asset operators.
Summary
- The Nigerian Senate has passed the Virtual Goods Service Providers Regulation Bill, 2026, for second reading.
- The bill would require crypto exchanges and other virtual asset service providers to obtain licenses.
- The proposal now goes to committee review before further reading and possible final approval.
The Virtual Asset Service Providers Regulation Bill, 2026, passed second reading on Tuesday and was moved to committee review. The proposal calls for licensing, compliance regulations, and consumer protection measures in one of the world’s largest crypto markets.
The Nigerian Senate is pushing ahead with a crypto bill
The Senate advanced the bill, listed as SB 956, after lawmakers argued over the handling of digital assets. The Deputy President of the Senate Barau Jibrin sponsored it, while the Chief Whip of the Senate Mohammed Monguno introduced it. The bill now goes to the Senate Committee on Financial Markets for further review.
The committee can review the proposal, consider amendments, and solicit public input. A second pass does not make a bill. It still has to pass committee review, third reading, and other necessary legislative sections.
The proposal calls for a legal and regulatory framework for physical goods, digital goods, and service providers. It will subject crypto exchanges and related operators to licensing requirements. The bill also proposes rules for transparency and compliance with firms serving Nigerian consumers. Lawmakers say these measures will help reduce fraud and improve market order.
The bill addresses licensing and international standards
The law aims to harmonize Nigerian crypto laws with international standards. Its supporters cited agencies linked to the Financial Action Task Force and the International Monetary Fund. The bill would require virtual asset service providers to follow anti-money laundering laws. It will also support terrorist financing controls on all crypto activities.
Under the proposal, operators of trading and investment platforms based on blockchain will require licenses. Some digital asset service providers will also face regulatory standards. Lawmakers say the current regulatory gap leaves a large industry without legal oversight. They argue that investment, jobs, and income remain difficult to track without clear rules.
Senate Majority Leader Tahir Monguno said Nigeria is following other African peers in property laws. He identified Kenya, South Africa, and Ghana as countries that are building related structures. The sponsor said the bill does not seek to block innovation. He pitched it as a way to promote order, confidence, accountability, and consumer protection.
Crypto market awaits committee review
Nigeria remains one of the most active crypto markets in the world in terms of adoption. Users rely on digital assets for remittances, cross-border payments, inflation, and global financial access. The country’s crypto policy has changed over time. Banks once faced restrictions on serving crypto firms, but regulators have since moved to more systematic oversight.
Recent efforts have included registration mechanisms for digital goods suppliers. The new bill aims to consolidate the scattered laws into a clear legal framework. Lawmakers linked the proposal to President Bola Tinubu’s $1 trillion economy goal. They argue that unregulated crypto activity limits the legitimate contribution of the digital economy.
If passed, the bill will increase the compliance of trading activities with other operators. However, supporters say clear rules would help legitimate firms attract investment. The next phase will determine the final status of the bill. Its impact will depend on the committee’s changes, license details, and final use rules.
