HSenate Advances Bill to Regulate Cryptocurrency, Strengthen Investor Protection in Nigeria

The Nigerian Senate has passed for second reading a bill seeking to regulate cryptocurrency operations, protect investors, and strengthen the country’s growing digital economy.

The bill, sponsored by Deputy Senate President Barau Jibrin, was approved during Tuesday’s plenary session following majority support from senators through a voice vote.

After its passage, the proposed legislation was referred to the Senate Committee on Capital Market for further legislative scrutiny, including a public hearing. The committee has been directed to report back within four weeks.

The bill aims to establish a comprehensive regulatory framework for virtual assets, digital currencies, and Virtual Asset Service Providers (VASPs). It also proposes mandatory licensing requirements, transparency standards, and strict compliance rules for cryptocurrency exchanges operating in Nigeria.

Leading the debate, Senator Tahir Monguno noted that Nigeria remains one of the highest adopters of cryptocurrency in Africa and globally, despite lacking a robust regulatory structure. He warned that the absence of clear laws has exposed investors to fraud, market manipulation, and cybercrime.

“This bill speaks directly to the realities of our time, when technology is reshaping the global financial system,” Monguno said.

Senators supporting the bill argued that Nigeria must not lag behind other African countries such as Kenya, South Africa, and Ghana, which have already established frameworks for regulating virtual assets.

Kwara South Senator, Oyelola Ashiru, stressed the need for Nigeria to keep pace with global technological developments, while Lagos East Senator, Adetokunbo Abiru, called for harmonisation of the bill with existing financial sector laws to ensure coherence in regulation.

Ogun Central Senator, Shuaib Salisu, warned that failure to regulate the sector could push activities into unmonitored markets, increasing opportunities for fraud and criminal exploitation.

Edo North Senator, Adams Oshiomhole, also expressed support, describing the arguments in favour of the bill as compelling.

If eventually passed into law and signed by the President, the legislation is expected to enhance investor confidence, attract foreign and local investment into Nigeria’s digital economy, and improve oversight of blockchain-based financial activities.

It is also projected to help government agencies better monitor digital transactions, reduce illicit financial flows, and increase tax revenue from the rapidly expanding fintech sector.

The bill marks a significant step toward formalising Nigeria’s cryptocurrency ecosystem, which has grown rapidly in recent years despite operating largely without a comprehensive legal framework.