Nigeria's Digital Economy Order Falls Short on Crypto Regulation

Nigeria has signed an executive order to harmonize the country's oversight of the digital economy, but financial law expert Iwa Salami argues that it leaves gaps in crypto regulation.

The order establishes a Virtual Asset Council and creates a Virtual Asset Office at the Central Bank of Nigeria, mandating information-sharing and reporting through an integrated supervisory technology platform.

However, Salami points out that the current regulatory framework is unclear and inconsistent, with different agencies having different definitions for virtual assets. The lack of clarity has led to confusion and gaps in oversight, allowing fraudulent operators to exploit the system.

The executive order aims to address these issues by creating a single front door for regulators and establishing shared definitions for virtual assets. However, Salami notes that this is not a statute and can be reversed by a future administration, and that it does not address the issue of dollarization or agent-authorisation standards.