A bill to regulate the cryptocurrency ecosystem in Nigeria passed second reading at the Senate during a plenary on Tuesday presided over by the Deputy Senate President, Mr Jibrin Barau.
Mr Barau, who sponsored the bill titled Virtual Asset Service Providers Regulation Bill, 2026, said that when passed into law, the piece of legislation would protect stakeholders from exploitation and promote confidence.
According to him, it will also place Nigeria among African countries such as Kenya, South Africa and Ghana that have adopted formal regulatory frameworks for cryptocurrency and digital asset transactions, while empowering regulators to license operators and combat fraud, money laundering and terrorism financing.
The Kano lawmaker noted that he pushed for this because of the absence of a comprehensive regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs) in the country.
But he said that with this, the nation’s digital economy would become robust, with investors having the confidence to explore opportunities in the market.
One of the Senators who spoke on the bill, Mrs Natasha Akpoti-Uduaghan, threw her weight behind it, noting that her son, who operates a gaming platform with a large global user base, is having a tough time getting partners to set up operations in Nigeria due to the lack of a robust regulatory environment.
She stated that billions of dollars in potential investments and job opportunities could be lost if the country fails to create the necessary legal framework for emerging digital industries.
According to her, many young innovators are being forced to take their businesses abroad, lauding the sponsor of the bill.
Others who commented on the bill emphasised that virtual assets remain an inevitable feature of the modern global economy, warning that continued regulatory gaps could drive investments and business activities into unregulated channels.
They argued that effective regulation would protect millions of Nigerians, particularly young entrepreneurs and traders, who depend on cryptocurrency and related technologies for employment and income.
After deliberations, the lawmakers passed the bill for second reading and referred it to the Senate Committee on Capital Market for further legislative scrutiny. The team is expected to submit its report within four weeks.