An economist and partner at SPM Professionals, Paul Alaje, has described President Bola Tinubu’s newly signed Executive Order on Virtual Assets Coordination as a framework for harmonising regulation across government agencies rather than creating a new regulator.

This comes even as he expects the Central Bank of Nigeria (CBN) to leave interest rates unchanged at the end of its Monetary Policy Committee (MPC) meeting, which ends today.

President Tinubu, last week, signed the executive order establishing a Virtual Assets Coordination Council, chaired by the CBN, to strengthen collaboration among regulators and close oversight gaps in Nigeria’s fast-growing digital assets market.

The council comprises the Nigerian Revenue Service (NRS), the Securities and Exchange Commission (SEC), the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).

According to the Presidency, the order neither establishes a new regulator nor removes the statutory powers of existing agencies.

The framework also provides for the introduction of a CBN regulatory sandbox for approved virtual asset operators, the development of a national virtual assets tax policy and the preparation of a white paper to guide the sector’s long-term growth.

Speaking on TVC yesterday, Alaje said the executive order primarily addresses the lack of coordination among regulators already operating within the virtual assets ecosystem.

“What this does is to ensure there is coordination of policy and coordination of different regulators. It is not trying to establish a new regulatory framework or new regulatory authorities,” he said.

According to him, Nigeria already laid the legal foundation for regulating virtual assets through the Investments and Securities Act (ISA) 2025, while the latest order is intended to improve policy alignment and regulatory enforcement.

Alaje stressed that the order does not confer legal tender status on cryptocurrencies, noting that the naira remains Nigeria’s only legal tender. He urged prospective investors to understand the risks associated with digital assets and verify that any investment platform falls within the country’s regulatory framework.

He said one of the government’s biggest gains from the new arrangement would be improved tax administration and revenue generation.

Alaje added that the CBN’s participation is crucial because large-scale conversion of naira into cryptocurrencies could have implications for exchange rate stability and inflation, while the SEC would continue to ensure that digital investment products offered to Nigerians are legitimate and properly regulated.

He cited the collapse of the CBEX trading platform as evidence of the risks posed by weak regulatory coordination, adding that the new framework should also provide Nigerians with a clearer avenue for resolving complaints involving virtual asset operators.

Alaje also called for the eventual inclusion of the Nigeria Deposit Insurance Corporation (NDIC) in the regulatory ecosystem to explore appropriate investor protection mechanisms.

Commenting on the CBN’s 306th MPC meeting, which began yesterday and concludes today, Alaje said he expects the Committee to retain the Monetary Policy Rate (MPR) at 26.5 per cent despite the recent moderation in inflation.

The MPC has kept the benchmark rate unchanged since February, while headline inflation eased marginally to 15.91 per cent in June from 15.93 per cent in May.

Alaje argued that maintaining rates would represent a deliberate policy decision rather than policy inertia.

He attributed his outlook to heightened geopolitical uncertainty following renewed tensions involving the United States and Iran, warning that disruptions around the Strait of Hormuz could trigger fresh volatility in global energy markets with implications for Nigeria’s inflation outlook.

According to him, further tightening could suppress investment and job creation, while a rate cut risks reigniting inflationary pressures, making a hold the most balanced option for policymakers.