Senate Advances Bill To Secure $1trn Economy Goal, Passes Virtual Asset Regulation Bill For Second Reading

June 09, (MEDIA TODAY) — The Senate, on Tuesday, advanced efforts to establish a comprehensive legal framework for cryptocurrency and digital asset operations in Nigeria, passing the Virtual Asset Service Providers Regulation Bill, 2026, for second reading in what lawmakers described as a critical step to strengthen investor confidence and support the Federal Government’s ambition of building a $1 trillion economy.

The proposed legislation seeks to create a structured regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs), while introducing mandatory licensing, transparency and compliance requirements for cryptocurrency exchanges and other digital asset operators across the country.

Lawmakers said the bill would address growing concerns surrounding fraud, money laundering and other illicit activities within the sector while enabling Nigeria to harness the economic opportunities presented by the rapidly expanding digital finance industry.

Leading debate on the bill, Senator Tahir Monguno, who presented the legislation on behalf of the Deputy Senate President and sponsor of the bill, Senator Jibrin Barau, said Nigeria had remained behind several African countries in establishing legal and institutional structures for digital asset regulation despite recording one of the highest cryptocurrency adoption rates on the continent.

According to Monguno, the lack of a comprehensive legal framework has left investors vulnerable and created opportunities for illegal activities to flourish.

He noted that the absence of regulatory clarity had generated uncertainty for both investors and operators, adding that the situation could undermine the country’s ability to fully benefit from the expanding digital economy.

“The absence of a legal framework has exposed investors to considerable risks and has created room for illicit activities in the sector”, Monguno stated during the debate.

Several senators who contributed to the discussion threw their support behind the proposed legislation, describing virtual assets and cryptocurrency as an inevitable feature of the modern global economy.

They warned that prolonged regulatory uncertainty could force investments and commercial activities into unregulated spaces, potentially depriving the country of substantial economic benefits and limiting opportunities for innovation.

The lawmakers also argued that effective regulation would protect millions of Nigerians, particularly young entrepreneurs, traders and technology professionals who increasingly depend on cryptocurrency and related digital technologies for livelihood and business opportunities.

Speaking on the broader significance of the proposed law, Barau said Nigeria’s position as a leading player in virtual asset adoption comes with significant regulatory responsibilities and challenges.

He warned that allowing the sector to continue operating without adequate oversight could encourage black-market activities, facilitate criminal transactions and weaken the industry’s contribution to national economic growth.

Barau linked the bill to the Federal Government’s long-term economic vision, stressing that an organised and properly regulated digital asset ecosystem could become an important contributor to the administration’s target of achieving a $1 trillion economy.

According to him, the proposed legislation was designed not to suppress innovation but to create a stable and transparent environment capable of encouraging responsible growth.

“The purpose of this legislation is not to stifle innovation but to create clarity, accountability, transparency and consumer protection within the ecosystem”, he said.

He further stated that the proposed regulatory framework would align Nigeria with internationally recognised standards developed by organisations such as the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).

During contributions to the debate, Senator Natasha Akpoti-Uduaghan expressed concerns over the impact of regulatory gaps on Nigeria’s technology and innovation sector. She lamented that many young innovators were relocating their businesses and ideas outside Nigeria because of inadequate support structures and an uncertain operating environment.

Citing the experience of her son, who operates a gaming platform with substantial global patronage, she said the absence of a robust legal and regulatory system had discouraged international technology service providers from establishing operations in Nigeria.

According to her, the country risks losing billions of dollars in potential investments and employment opportunities if urgent measures are not taken to provide legal support for emerging digital industries.

Also supporting the legislation, Senator Adams Oshiomhole said the necessity for regulation had become self-evident and called for accelerated legislative action to ensure the timely passage of the bill.

However, Senator Adetokunbo Abiru advised lawmakers to harmonise the proposed legislation with existing financial laws, including the Investments and Securities Act and the Banks and Other Financial Institutions Act (BOFIA), to ensure consistency and avoid possible overlaps within Nigeria’s broader financial regulatory architecture.

Summing up the debate, Barau reiterated that the legislation would establish safeguards for investors and participants in the virtual asset ecosystem while promoting innovation that contributes positively to national development. He maintained that a clear legal framework would enhance confidence among operators and investors while reducing opportunities for exploitation and abuse.

Following deliberations, the Senate referred the bill to its Committee on Capital Market for further legislative scrutiny and directed the committee to submit its report within four weeks.