Nigeria's VASP Bill Clears Senate Second Reading — Formal Crypto Framework Edges Closer

Nigeria's Senate has advanced the Virtual Asset Service Providers Regulation Bill, 2026 past its second reading, marking a significant legislative milestone toward a formal domestic crypto regulatory framework. The bill targets structured oversight of cryptocurrency service providers operating within Nigeria, Africa's largest retail crypto market by volume. Passage into law would give the Securities and Exchange Commission or a designated authority clearer jurisdictional mandate over exchanges, wallet providers, and related entities — reducing the regulatory ambiguity that has hampered institutional participation since the 2021 banking restrictions. For fintech operators and foreign crypto platforms eyeing Nigerian market entry, a codified VASP regime would lower compliance uncertainty and potentially unlock formal banking partnerships. The bill still requires a third reading, committee review, and presidential assent before becoming law. Regional peers in Kenya and South Africa have already enacted comparable VASP frameworks, adding competitive pressure on Nigeria to close the governance gap.