Nigeria’s Tinubu Signs Decree to Regulate Crypto Sector

Par DCN Editorial Team Publié le 18 July 2026

Uncategorized

Nigerian President Bola Tinubu has signed a landmark executive order aimed at regulating the cryptocurrency sector in the country. This decision marks a turning point in the Nigerian government’s strategy, long torn between a de facto banking ban and the widespread adoption of digital assets by its population.

A Regulatory Framework Rather Than a Ban

Unlike previous measures that slowed innovation without stopping it, this new presidential decree enacted by Bola Tinubu establishes a structured regulatory framework for virtual assets in Nigeria. The executive order aims to create a clear legal environment for businesses and individuals operating in the cryptocurrency sector, while incorporating oversight and compliance mechanisms.

This approach represents a significant paradigm shift from the position adopted by the Central Bank of Nigeria (CBN) in 2021, which ordered commercial banks to close accounts linked to cryptocurrency transactions. That banking ban, although still technically in effect, did not prevent Nigeria from becoming one of the largest peer-to-peer (P2P) markets in Africa, with an estimated trading volume of several hundred million dollars per month.

Nigeria, an Often Overlooked Giant of Crypto Adoption

Nigeria holds a unique position in the global cryptocurrency ecosystem. According to the most recent adoption indices, the country consistently ranks among the top five nations worldwide for cryptocurrency usage, despite a regulatory environment long perceived as hostile. Several factors explain this massive adoption:

• Rampant inflation: with an inflation rate regularly exceeding 20%, many Nigerians turn to Bitcoin and stablecoins as an alternative store of value against the depreciation of the naira.
• An exclusionary banking system: nearly 40% of the adult population lacks access to traditional banking services, making mobile wallets and cryptocurrencies an essential financial inclusion solution.
• A dynamic diaspora: remittances from the Nigerian diaspora, which exceed $20 billion per year, increasingly flow through crypto channels to bypass the high fees of traditional transfers.
• A young and connected population: with a median age of 18 and one of the highest mobile penetration rates in Africa, Nigeria offers fertile ground for the adoption of digital technologies.

Details of the Presidential Decree

The decree signed by President Tinubu establishes several fundamental pillars for regulating the sector:

Creation of a dedicated oversight body: the text provides for the establishment of a regulatory authority specifically mandated to supervise activities related to virtual assets. This structure would be separate from the Central Bank and the Nigerian Securities and Exchange Commission (SEC), although it must work closely with these institutions.

Compliance obligations for exchanges: cryptocurrency exchange platforms operating in Nigeria will need to obtain a license, implement enhanced know-your-customer (KYC) procedures, and report transactions exceeding a certain threshold to the regulatory authority.

Anti-money laundering and counter-terrorism financing: the decree aligns Nigerian legislation with the recommendations of the Financial Action Task Force (FATF), imposing strict reporting obligations on sector players regarding anti-money laundering and counter-terrorism financing (AML/CFT).

Regulation of stablecoins: the text specifically addresses the issue of stablecoins, whose use has grown considerably in Nigeria as an alternative to the naira for daily transactions and commercial exchanges.

Consumer protection: an important component of the decree concerns the protection of investors and cryptocurrency users, with dispute resolution mechanisms and pre-contractual information obligations imposed on service providers.

A Complex and Evolving Regulatory Landscape

Nigeria has had a complex relationship with cryptocurrencies for several years. In February 2021, the Central Bank of Nigeria issued a circular banning banks and financial institutions from dealing with cryptocurrency exchanges or facilitating virtual asset transactions. This measure sent shockwaves through the ecosystem, but failed to curb Nigerians’ appetite for digital assets.

On the contrary, the banking ban accelerated the development of the Nigerian P2P market, as users bypassed the traditional banking system to trade directly with each other via platforms such as Paxful, LocalBitcoins, or Telegram and WhatsApp groups. P2P trading volume in Nigeria reached record highs, making the country the second-largest market globally for this type of transaction, after the United States.

At the same time, the Nigerian Securities and Exchange Commission (SEC) had attempted to establish a regulatory framework in 2020 and 2022, but these efforts ran into a lack of coordination with the CBN and persistent legal ambiguity. The new presidential decree clarifies the hierarchy of competent authorities and resolves jurisdictional conflicts between different regulators.

Implications for the African Cryptocurrency Market

Nigeria’s decision, as Africa’s largest economy with a GDP of over $440 billion, could have far-reaching repercussions across the continent. As the most populous country in Africa with more than 220 million inhabitants, Nigeria plays a leading role in the region.

Several African countries are closely watching the evolution of Nigerian regulation. Kenya, South Africa, and Ghana, which are also experiencing massive cryptocurrency adoption, may draw inspiration from this...