- Nigeria’s Senate advanced cryptocurrency legislation establishing rules for digital assets.
- Proposed regulations include licensing requirements and stronger compliance standards.
- Textile revival plans target investments, factory growth, and job creation.
Nigeria’s Senate has advanced a bill that could establish a formal regulatory framework for cryptocurrency service providers, marking a significant development for one of Africa’s largest digital asset markets. Lawmakers passed the Virtual Asset Service Providers Regulation Bill on second reading during plenary on June 9. The legislation, sponsored by Deputy Senate President Barau Jibrin, received support from a majority of senators through a voice vote. Senators Oyelola Ashiru, Adetokunbo Abiru, Shuaib Salisu, and Adams Oshiomhole also contributed to discussions on the proposal.
The bill seeks to create clear legal guidelines for virtual assets and companies operating within the digital asset sector. Moreover, it proposes licensing requirements, compliance obligations, and transparency standards for cryptocurrency exchanges and other service providers. Nigeria has remained one of the world’s most active cryptocurrency markets despite operating without a comprehensive regulatory framework. Many citizens use digital assets for savings, cross-border transfers, investments, and protection against naira volatility.
Speaking during the debate, Senate Chief Whip Mohammed Tahir Monguno said Nigeria has fallen behind several African countries in regulating digital finance despite recording some of the continent’s highest cryptocurrency adoption levels.
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Proposed Rules Aim to Bring Structure to Growing Market
The legislation arrives as digital asset activity continues to expand across Nigeria. Consequently, policymakers are under increasing pressure to provide legal certainty for both users and businesses operating in the sector. Data from Chainalysis shows Nigeria recorded $92.1 billion in on-chain cryptocurrency value between July 2024 and June 2025. Additionally, the country ranked sixth globally in the 2025 Crypto Adoption Index, supported by strong retail participation and growing decentralized finance activity.
If enacted, the proposed framework is expected to introduce stronger anti-money laundering measures, customer protection requirements, and clearer oversight of Virtual Asset Service Providers. Supporters believe the rules could encourage greater confidence in the sector while reducing regulatory uncertainty.
Beyond cryptocurrency regulation, senators also adopted a motion calling for urgent intervention in Nigeria’s textile industry. Senator Sunday Marshall Katung sponsored the motion with support from Barau Jibrin and several lawmakers. Lawmakers cited widespread factory closures, job losses, and declining local production across major textile hubs, particularly in Kaduna and Kano.
Furthermore, they raised concerns about Nigeria’s increasing dependence on imported textile products. The crypto bill has now been referred to the Senate Committee on Capital Market for further review and public consultations over the next four weeks.
Textile Revival Plans Gain Momentum
Meanwhile, the Federal Government’s CTG Policy Framework is expected between June and July 2026. Authorities expect the initiative to attract investments, revive cotton production, support manufacturing, and create up to 1.5 million jobs.
Government officials have also highlighted investment commitments worth as much as $3.5 billion. However, stakeholders continue to point to electricity challenges and security concerns as critical issues that must be addressed for long-term success.
If approved by the National Assembly and signed into law by President Bola Tinubu, the VASP bill could reshape Nigeria’s digital asset industry by introducing long-awaited regulatory clarity while supporting broader efforts to modernize the country’s economy.
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