Virtual Asset Stakeholders Back Tinubu’s Executive Order, Urge Swift Implementation

| By: Francis Onyemachi

Experts and startup founders in Nigeria have welcomed President Bola Tinubu’s Executive Order on Virtual Assets Coordination, describing it as a commendable step towards creating a more coordinated regulatory framework for the country’s digital asset industry.

The Executive Order, which took immediate effect after its announcement, seeks to harmonise the regulation of virtual assets, strengthen collaboration among the country’s financial, revenue and capital market regulators, protect citizens from fraud, safeguard the integrity of the financial system and support responsible innovation.

While stakeholders say the order provides long-awaited regulatory clarity for founders, innovators and investors, they stress that its success will depend on effective implementation.

Samuel Akpan, regional marketing manager at Yellow Card, said the Executive Order could enhance Nigeria’s fintech sector, although many founders have yet to appreciate its full significance.

Regulatory Challenges

In a post on his LinkedIn page, Akpan said fintech founders had spent the past three years operating under an uncertain regulatory environment.

“For three years, fintech founders operated in regulatory fog. CBN said one thing. SEC said another. NRS wasn’t even engaged. Banks ghosted you. Investors were scared. You had to choose: build traditional fintech, which was already crowded, or build crypto fintech under regulatory roulette.”

A coordinated framework

Akpan explained that the Executive Order establishes a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice-chairs.

According to him, the council will develop a harmonised legal and institutional framework for the sector, bringing the country’s key regulators under one coordinated structure.

“One council. One framework. Three agencies aligned.”

Opportunities for the ecosystem

Akpan believes the new framework could encourage stronger partnerships between banks and fintech companies, improve investor confidence and help Nigeria retain technology talent.

He said banks that had been waiting for regulatory certainty would now be more willing to collaborate with fintech firms, while investors would be better positioned to assess risk and deploy capital.

He also noted that international fintech companies could view Nigeria more favourably as regulatory certainty improves, making it easier for specialised financial technology businesses to compete and grow.

Early movers could benefit

According to Akpan, founders who continued building despite regulatory challenges are now in a stronger position to benefit from the new policy environment.

He advised entrepreneurs to engage with regulators before detailed implementation guidelines are released.

“Before detailed rules drop. Before the rush. Before the council publishes guidelines. You want to be in the room when the framework is being written.”

Franklin Peters, executive chairman of the Virtual Asset Service Providers Association (VASPA) and founder of BoundlessPay, said the Executive Order addresses one of the industry’s biggest longstanding challenges.

“One of the biggest challenges in the industry has been regulatory fragmentation. Different agencies have had different mandates, and businesses have often found themselves trying to comply with overlapping or sometimes unclear requirements.

“A coordinated approach provides much-needed clarity. For exchanges and VASPs, it should mean a more predictable regulatory environment. For startups, it reduces uncertainty and allows founders to focus more on building than interpreting regulations.”

Peters said the Executive Order also sends a strong signal to investors that Nigeria is committed to developing a well-governed digital asset market.

“Ultimately, regulation should reduce uncertainty, and uncertainty is one of the biggest barriers to innovation and investment. If implemented properly, this Executive Order could position Nigeria as one of Africa’s leading jurisdictions for responsible digital asset innovation.”

Focus on implementation

Peters, who is also Chief Executive Officer of BoundlessPay, said implementation would determine whether the Executive Order delivers its intended impact.

He argued that regulators should adopt a risk-based and activity-based approach rather than applying the same rules to every business.

According to him, a custodial exchange should not face the same regulatory requirements as a blockchain infrastructure provider or software developer because each business model presents different levels of risk.

He said the industry should expect detailed implementation guidelines, clearer licensing pathways, stronger coordination among regulators and more structured engagement with industry stakeholders.

“One of the biggest challenges will be ensuring that harmonisation translates into simplification. We don’t want multiple agencies requesting the same information or businesses having to obtain overlapping approvals under a different framework.”

Peters also identified capacity building as essential to the success of the policy, urging continuous training for regulators, law enforcement agencies, financial institutions and the judiciary to keep pace with the rapidly evolving digital asset ecosystem.

Japhet Gana, group head of Transaction Risk and Financial Crimes at Yellow Card, described the Executive Order as the most significant structural development in Nigeria’s virtual asset regulatory landscape to date.

He said regulatory certainty is as important as regulation itself for cryptocurrency exchanges and other Virtual Asset Service Providers (VASPs).

According to Gana, firms have historically had to navigate multiple regulators with overlapping responsibilities.

A more coordinated approach, he said, could reduce duplication, improve engagement between regulators and industry players, and provide greater clarity over supervisory responsibilities.

For blockchain startups, he said the biggest advantage is predictability.

“Entrepreneurs and investors are far more likely to build long-term businesses when they understand the regulatory expectations from the outset. Clearer pathways into regulatory compliance can encourage responsible innovation while reducing uncertainty that has historically affected investment decisions and banking relationships.”

Gana added that regulatory clarity is generally viewed positively by both domestic and international investors because institutional capital typically favours jurisdictions with transparent, proportionate and consistently applied rules.

He said the Executive Order has the potential to strengthen confidence in Nigeria’s digital asset ecosystem while reinforcing the country’s position as one of Africa’s leading markets for digital asset innovation.

He also called for sustained coordination among government agencies, continuous engagement with industry stakeholders and the use of technology-driven supervision as the sector continues to expand.