The Senate has moved a step closer to establishing a legal framework for the regulation of virtual assets and digital asset service providers, following the passage of a proposed bill through its second reading.
The bill, titled the Virtual Asset Service Providers Regulation Bill, 2026 (SB 956), seeks to create a comprehensive system for the oversight, regulation and supervision of virtual assets, digital assets and related service providers operating within Nigeria.
The legislation is sponsored by Deputy Senate President, Barau Jibrin, and was presented during plenary by Senate Chief Whip, Mohammed Monguno.
While leading debate on the bill, Monguno said the proposed law would position Nigeria to take full advantage of opportunities in the rapidly expanding global digital economy while protecting the country’s financial system from emerging risks.
He noted that technological advancements are transforming global finance and influencing how people conduct transactions, invest, save and generate income. According to him, virtual assets such as cryptocurrencies and blockchain-based tokens have become an integral part of modern economic activities, creating opportunities for innovation, employment and broader financial inclusion.
Monguno observed that millions of Nigerians, particularly young people, are already actively involved in the digital asset ecosystem through trading, fintech development and blockchain-based innovations. He added that although Nigeria ranks among the leading adopters of virtual assets worldwide, regulatory frameworks have not evolved at the same pace as technological developments.
According to him, the lack of adequate regulation has created vulnerabilities that could encourage fraud, financial crimes and exploitation of unsuspecting citizens, while also posing risks to the stability of the financial sector.
He explained that the bill is designed to promote transparency, accountability and effective oversight without hindering innovation. The proposed legislation would require virtual asset service providers to obtain licences and comply with regulations aimed at protecting investors and consumers.
Monguno further stated that the framework would strengthen Nigeria’s efforts to combat money laundering, terrorism financing and other illicit financial activities in line with international best practices.
Contributing to the debate, Deputy Senate Leader, Oyelola Ashiru, said Nigeria had been slow in developing regulations for virtual assets despite the growing acceptance of digital finance across the world. He pointed to countries such as Kenya, South Africa and Ghana as examples of nations that have made significant progress in the sector.
Senator Adetokunbo Abiru expressed support for the bill but urged lawmakers to ensure that it aligns with existing financial sector legislation. He stressed the importance of developing a coordinated regulatory framework that takes into account other fintech-related laws already enacted or under consideration.
Also supporting the proposal, Senator Shuaib Salisu highlighted Nigeria’s leading role in Africa’s fintech industry. He warned that the absence of clear regulations could encourage underground transactions, reduce transparency and create opportunities for criminal activities.
According to him, a properly regulated virtual asset sector could contribute significantly to economic growth and support the Federal Government’s ambition of building a trillion-dollar economy.
Senator Natasha Akpoti-Uduaghan argued that regulatory uncertainty has limited investment opportunities and innovation in the digital space. She maintained that creating a clear legal framework would unlock employment opportunities for young Nigerians and attract greater investment into the sector.
For his part, Senator Adams Oshiomhole described the case for the legislation as compelling, saying the benefits of regulation were evident and widely understood.
Following deliberations, lawmakers approved the bill for a second reading and referred it to the Senate Committee on Capital Market for further scrutiny. The committee is expected to submit its report within four weeks as the National Assembly continues work on legislation aimed at strengthening Nigeria’s digital finance and blockchain ecosystem.