VASPA Aims to Channel $92.1 Billion of Nigeria’s Virtual Asset Trade into Formal Economy

The Virtual Asset Service Providers Association (VASPA) plans to integrate an estimated $92.1 billion of Nigeria’s annual virtual asset volume into the formal economy, aiming to generate tax revenue from previously untaxed transactions.

Nigeria's informal virtual asset market, encompassing cryptocurrencies and other digital tokens, currently operates largely outside traditional financial oversight. This unmonitored activity represents a significant economic segment with limited benefits for the national treasury.

VASPA, a Pan-African industry association, has introduced "Project Green-White-Green," a framework designed to bridge the gap between global digital asset liquidity and Nigeria's regulatory needs. This initiative seeks to bring clarity and structure to the sector.

The project aims to integrate an estimated $92.1 billion in annual virtual asset volume into Nigeria's formal financial system. Data indicates Nigerians conducted over $92 billion in virtual asset transactions between July 2024 and June 2025. This volume generated virtually no tax revenue due to the lack of formal infrastructure for tracking and taxation.

Project Green-White-Green proposes linking virtual asset trading spreads to official NAFEM (Nigerian Autonomous Foreign Exchange Market) rates. This mechanism aims to stabilize pricing and bring transparency to transactions. The framework also suggests an API (Application Programming Interface)-driven system to automate the calculation and collection of VAT (Value Added Tax) and Capital Gains Tax (CGT) directly at the point of transaction.

This comprehensive approach seeks to end fragmented oversight, where operators often navigate regulations from multiple bodies like the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), and the Corporate Affairs Commission (CAC). Franklin Peters, Executive Chair of VASPA, stated, "We are no longer waiting for the future of finance to happen to Nigeria; we are architecting it."

Formalizing the virtual asset market could transform a grey market into a sustainable revenue engine for Nigeria. By automating tax collection, the government could tap into a significant income stream, directly supporting its ambitious goal of achieving a $1 trillion economy by 2030. This strategy represents a shift from attempts to prohibit virtual asset activities to efforts aimed at integrating and regulating them.

The proposed framework offers a structured pathway for operators and investors, potentially enhancing Nigeria's position in the global digital economy. This integration could also provide consumer protection and market stability that are often absent in unregulated environments.

The implementation of Project Green-White-Green will hinge on regulatory collaboration and its adoption by the Nigerian government. Stakeholders will observe how this blueprint translates into actual policy and its impact on virtual asset trading volumes and tax revenues.