The Nigerian Senate on Tuesday advanced a major legislative push aimed at formalising the country’s fast-growing digital asset space, while also turning attention to the long-standing collapse of its textile manufacturing sector.
The proposed bill seeking to establish a comprehensive legal and regulatory framework for virtual assets in Nigeria scaled second reading during plenary, securing unanimous support from lawmakers and moving a step closer to detailed legislative scrutiny.
Crypto Regulation Gains Momentum in the Senate
Sponsored by the Deputy President of the Senate, Senator Barau Jibrin, the bill is designed to provide legal clarity and regulatory oversight for virtual assets and digital asset service providers operating within Nigeria’s financial ecosystem.
Leading debate on the bill, Senate Chief Whip Senator Mohammed Tahir Monguno said the legislation is necessary given Nigeria’s growing participation in the global digital economy despite the absence of a structured legal framework.
He noted that Nigeria remains one of the highest users of virtual assets globally, even as regulation has struggled to keep pace with rapid technological innovation.
“Virtual assets, from cryptocurrency to blockchain-based tokens, have become an integral part of modern economic life,” Monguno said.
He further stressed the urgency of regulatory alignment, adding: “While innovation in the sector has surged, regulation has lagged. This bill seeks to close that gap and ensure compliance with laws designed to protect the public and the financial system.”
Following deliberations, senators unanimously endorsed the proposal and referred it for further legislative work and committee review.
In a related development, another bill sponsored by Senator Barau Jibrin titled the Nigeria Communications Commission (Amendment) Bill, 2026, also passed its first reading in the upper chamber.
Lawmakers Turn Attention to Textile Industry Collapse
Beyond digital finance, the Senate also adopted a motion calling for urgent government intervention to revive Nigeria’s struggling textile industry, which lawmakers described as a critical pillar of industrial employment that has suffered prolonged decline.
The motion, sponsored by Senator Sunday Marshall Katung and co-sponsored by Senator Barau Jibrin alongside other lawmakers, highlighted the economic and social consequences of the sector’s collapse.
During the debate, Senator Barau warned that the decline of the textile industry had resulted in widespread job losses and weakened local industrial capacity.
“This issue touches on our overall well-being as Nigerians and on our economy,” he said. “We have lost thousands of jobs and livelihoods due to the collapse of our textile industry.”
He further argued that Nigeria’s heavy reliance on imported fabrics has deepened the problem, stating: “By importing 99 per cent of our textile needs, we invariably create jobs for the countries we import from while denying our teeming population these same jobs. We need to reverse this trend to strengthen our economy and improve the welfare of our people.”
Economic Diversification and Industrial Policy in Focus
Lawmakers agreed that reviving the textile sector could play a significant role in addressing unemployment, particularly among young people, while also strengthening Nigeria’s broader industrial base.
The Senate subsequently resolved to urge the Federal Government to take immediate steps toward revitalising the industry, citing its potential to generate jobs, stimulate local production, and reduce import dependence.
In their concluding remarks, senators expressed optimism that targeted interventions in both emerging sectors like digital assets and traditional industries such as textiles could contribute to a more balanced and resilient Nigerian economy.
The dual focus of the Senate’s deliberations reflects a broader policy direction—balancing innovation in new financial technologies with the rehabilitation of legacy manufacturing sectors that once formed the backbone of Nigeria’s industrial growth.