Nigeria’s Senate has moved a major crypto bill forward. On June 9, lawmakers passed the Virtual Asset Service Providers Regulation Bill on second reading during plenary, a step that could lay down a formal legal framework for digital asset companies in one of Africa’s busiest crypto markets.
Second reading clears the way for committee review
The bill was sponsored by Deputy Senate President Barau Jibrin and received majority backing through a voice vote. Senators Oyelola Ashiru, Adetokunbo Abiru, Shuaib Salisu, and Adams Oshiomhole also took part in the debate. It has now been referred to the Senate Committee on Capital Market, which is expected to review the proposal and conduct public consultations over the next four weeks.
The measure is designed to set clear legal guidelines for virtual assets and the firms operating in the sector. It proposes licensing rules, compliance duties, and transparency requirements for crypto exchanges and other service providers. If enacted, Nigeria would move from an active but loosely structured market toward a defined supervisory regime.
A highly active market without a full framework
Nigeria has remained one of the world’s most active cryptocurrency markets even without comprehensive regulation. Digital assets are widely used for savings, cross-border transfers, investment activity, and as a hedge against naira volatility. The market grew first; the legal structure has been trying to catch up.
During debate on the bill, Senate Chief Whip Mohammed Tahir Monguno said Nigeria had fallen behind several African countries in regulating digital finance despite posting some of the continent’s highest levels of crypto adoption. That gap has become harder for lawmakers to ignore.
$92.1 billion in on-chain value puts focus on AML and user safeguards
Data from Chainalysis shows Nigeria recorded $92.1 billion in on-chain cryptocurrency value between July 2024 and June 2025. The country also ranked sixth globally in the 2025 Crypto Adoption Index, supported by strong retail participation and expanding DeFi activity.
If the bill becomes law, the framework is expected to bring stronger anti-money laundering standards, customer protection requirements, and clearer oversight of Virtual Asset Service Providers. Backers of the proposal argue that formal rules could reduce regulatory uncertainty for both firms and users.
Textile industry intervention was discussed in the same sitting
Alongside the crypto legislation, senators adopted a motion calling for urgent intervention in Nigeria’s textile industry. The motion was sponsored by Sunday Marshall Katung with support from Barau Jibrin and other lawmakers. Senators pointed to factory closures, job losses, and falling domestic output across major textile hubs, especially Kaduna and Kano, while also raising concern over rising dependence on imported textile goods.
The Federal Government’s CTG Policy Framework is expected between June and July 2026. Authorities say the plan could attract investment, revive cotton production, support manufacturing, and create up to 1.5 million jobs. Government officials have also cited investment commitments of as much as $3.5 billion, though electricity shortages and security issues remain central concerns for long-term delivery.
If approved by the National Assembly and signed by President Bola Tinubu, the VASP bill would give Nigeria’s digital asset sector its first detailed statutory framework.