Senators in session
Senate has passed for second reading, a bill seeking to establish a comprehensive legal, regulatory and supervisory framework for virtual assets, digital assets and virtual asset service providers operating in Nigeria.
This followed the presentation of the general principles of the bill at plenary on Tuesday.
The bill, titled “Virtual Asset Service Providers Regulation Bill, 2026 (SB 956)”, was sponsored by Deputy Senate President, Barau Jibrin,(APC-Kano) and presented by Chief Whip of the Senate, Sen. Mohammed Monguno(APC-Borno).
Leading debate on the bill, Monguno said the bill would ensure Nigeria’s full participation in the rapidly evolving global digital economy and safeguard its financial system.
“This bill speaks directly to the realities of our time, a time when technology is reshaping the global financial system and redefining how people earn, trade, save and invest,” Monguno said.
According to him, virtual assets, including crypto currencies and blockchain-based tokens have become a significant component of modern economic activities.
He said digital assets were creating new opportunities for innovation, job creation and financial inclusion.
“Today, millions of young Nigerians are already participating in this digital economy, trading, building fintech platforms and innovating through blockchain technologies.
“Our country ranks among the top users of virtual assets globally. In spite of the rapid adoption of virtual assets, regulatory efforts had failed to keep pace with technological advancements.
“While innovation has surged, regulation had lagged behind, this has created loopholes that allow fraud and financial crimes to flourish, expose honest citizens to exploitation and threaten the stability of our financial system,” he said.
He said the bill sought to introduce transparency, accountability and proper oversight into the virtual asset ecosystem without stifling innovation.
“It does not seek to stifle innovation or punish creativity; rather, it aims to create a fair and predictable environment where innovation can thrive under clear rules and responsible oversight.”
Monguno said that the bill, when passed would require virtual asset service providers to be licensed and operate in compliance with regulations designed to protect investors and consumers.
According to him, the framework will strengthen Nigeria’s efforts against money laundering, terrorism financing and illicit financial transactions.
This, he said was in line with international standards established by the Financial Action Task Force and the International Monetary Fund (IMF).
Deputy Senate Leader Sen. Oyelola Ashiru (APC-Kwara ), said Nigeria had been slow in embracing and regulating virtual assets despite the growing global acceptance of digital finance.
“I wonder why Nigeria is always lagging behind in taking very necessary initiatives. Countries like Kenya, South Africa and Ghana have already covered a lot of mileage,” Ashiru said.
He said crypto currency and other virtual assets had become unavoidable realities in the modern global economy.
“We should strive to match our brothers in Africa and across the world and, with the speed of light, proceed with the second reading of this bill.”
Sen. Adetokunbo Abiru (APC- Lagos), expressed support for the bill but advised lawmakers to ensure that it aligns with existing legislation governing the financial sector.
“There is no doubt that the times we live in call for a bill of this nature because we live in an era of technology,” Abiru said.
He, however, noted that senate had recently passed legislation on investment securities and virtual assets, adding that other fintech-related laws were currently under review.
“What I would like to suggest is that, as important as this is, we should marry these together so that we have a holistic view of how the industry should be regulated.”
Sen. Shuaib Salisu (APC-Ogun), emphasised Nigeria’s leadership position in Africa’s fintech ecosystem.
“A few days ago, there was a report that Nigeria leads in virtual assets in Africa, this is not surprising because Nigeria is also leading when it comes to fintechs in Africa,” Salisu said.
He said significant number of Africa’s leading fintech companies originated from Nigeria, advising that failure to regulate virtual assets could create opportunities for criminal activities and undermine economic growth.
“If you do not provide a regulatory framework for this sector, it will go under the table in a black market environment.
“Once there is no transparency and activities become opaque, it allows criminal activity to take place,” he said.
Salisu said that the bill would support President Bola Tinubu’s ambition of building a 1 trillion dollar economy by unlocking the economic potential of the digital asset sector.
Sen. Natasha Akpoti-Uduaghan (PDP-Kogi) noted how the absence of clear regulations had limited opportunities for her son’s gaming business in Nigeria.
Akpoti-Uduaghan said that Nigeria was losing substantial revenue and investment opportunities because of the regulatory vacuum on virtual assets.
“There is a lot of investment in the virtual space today running into billions of dollars. It would be a mistake not to create jobs and opportunities for young Nigerians through proper regulation.”
Sen. Adams Oshiomhole (APC- Edo), said the arguments in support of the bill were compelling and self-evident.
“Everything that needs to be said has been said, this bill is self-evident we don’t need to over-flog it,” Oshiomhole said.
After the debate, the bill passed second reading, Barau, who presided plenary referred it to Committee on Capital Market for further legislative inputs and to be returned back within four weeks.
He commended senators on their contributions and expressed confidence that the bill would strengthen Nigeria’s digital economy framework and the emerging opportunities in virtual assets and blockchain technology.(NAN)
