The Virtual Asset Service Providers Association (VASPA) has introduced a new policy framework designed to stabilize the naira and integrate Nigeria's expanding virtual asset market into the formal economy. This marks a significant shift in the country's approach to digital finance.
Project Green-White-Green
The framework, named Project Green-White-Green, proposes a dynamic foreign exchange alignment model that connects crypto trading spreads to the Nigerian Autonomous Foreign Exchange Market (NAFEM) rates. This aims to reduce volatility and address distortions in the foreign exchange market.
The initiative follows years of tension between regulators and virtual asset operators, with authorities previously restricting banking channels for cryptocurrency transactions due to concerns about financial stability and security.
VASPA stated that the new approach moves away from suppressing the market and instead seeks to align it with national economic priorities, especially as currency volatility remains a major concern for Nigerians.
Industry Stakeholder Perspective
Franklin Peters, Executive Chair of VASPA, said the project represents a deliberate effort by industry stakeholders to reposition the sector as a driver of economic growth rather than a regulatory burden. He noted that the framework provides a structured pathway for operators by addressing regulatory bottlenecks involving the Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), and Corporate Affairs Commission (CAC), which have made compliance difficult for many firms.
The proposal also enhances transparency and security through mandatory identity verification tied to the National Identity Management Commission (NIMC), ensuring participants are traceable and accountable.
Revenue Generation Potential
Peters revealed that over $92 billion in crypto transactions recorded between July 2024 and June 2025 generated little or no tax income due to the absence of proper mechanisms. To address this, the framework recommends an automated system for collecting value-added tax and capital gains tax at the point of transaction, which could transform the sector into a sustainable revenue source.
Implementation Strategy
Favour Uche, Project Manager at VASPA, described the document as the result of extensive legal, technical, and economic work designed to align industry innovation with national interests. She said the association is preparing to present the framework to key government institutions to secure regulatory backing and begin implementation.
The proposal includes a Safe Harbour Pilot that allows operators to regularize their activities without immediate sanctions, as well as a 24-month roadmap to integrate offshore exchanges into Nigeria's regulatory system.
VASPA maintained that the project signals a broader policy shift, emphasizing that virtual assets should be treated as a strategic component of Nigeria's financial system rather than a peripheral concern.
