Is Crypto Regulated in Nigeria? What You Need to Know in 2025

For years, crypto in Nigeria lived in a gray zone. Banks froze accounts. Exchanges operated in the shadows. Users traded peer-to-peer, risking everything just to send money or invest. But that changed in 2025. Crypto regulation in Nigeria is no longer a question of whether-it’s a question of how well you follow the rules.

What Changed in 2025?

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025. This wasn’t a tweak. It was a full rewrite of how Nigeria treats digital assets. For the first time, cryptocurrencies like Bitcoin and Ethereum were officially recognized as securities under Nigerian law. That means they’re no longer just digital tokens-they’re financial instruments, subject to the same oversight as stocks and bonds.

The Securities and Exchange Commission (SEC) became the main regulator. Before this, no single agency had clear authority. Now, every crypto exchange, wallet provider, or token issuer must register with the SEC. The Central Bank of Nigeria (CBN) also stepped in with its Virtual Asset Service Provider (VASP) Guidelines, allowing banks to open accounts for licensed crypto businesses. That’s huge. After years of banks refusing to touch crypto, suddenly, you can deposit Naira into a regulated exchange.

Who Needs a License?

If you’re running a crypto business in Nigeria, you need a license. The SEC created clear categories:

• Crypto Exchanges - Platforms where users trade Bitcoin, Ethereum, or other tokens. Must have at least ₦500 million ($335,000) in paid-up capital.
• Wallet Providers - Companies offering digital wallets for storing crypto. Must hold fidelity bonds and have Nigerian-based management.
• Token Issuers - Anyone launching a new cryptocurrency or NFT as an investment. Must file a prospectus with the SEC.
• Payment Processors - Firms enabling crypto-to-fiat conversions. Must comply with CBN rules on anti-money laundering.

By late 2024, only two exchanges got provisional licenses: Busha and Quidax. Dozens more are in line. The SEC isn’t rushing approvals. Each application goes through deep background checks, financial audits, and proof of local presence. You can’t just register a company in Lagos and call it a day. You need a physical office, Nigerian staff, and a local director.

What’s Not Covered?

Not every crypto activity falls under the SEC’s thumb. Artistic NFTs-like digital art or collectibles sold as unique items-are exempt, unless they’re marketed as investments. If someone sells an NFT saying, “Buy this and we’ll share profits,” that’s a security. If they say, “This is a one-of-a-kind digital painting,” it’s not.

Also, peer-to-peer (P2P) trading between individuals isn’t banned. You can still use LocalBitcoins or Paxful to buy crypto from a friend. But if you set up a platform to connect buyers and sellers, that’s a business-and you need a license.

How Are They Enforcing It?

The government isn’t just writing rules. They’re watching.

The SEC now has legal access to telecom records to track suspicious transactions. The Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) work side-by-side with the SEC to shut down scams. Ponzi schemes disguised as “crypto investment clubs” are being raided. In August 2025, the EFCC arrested three people running a fake crypto mining platform that promised 15% daily returns. That’s the kind of case regulators are targeting.

The National Anti-Money Laundering Act was updated to include virtual assets. That means crypto transactions now trigger the same reporting rules as cash deposits over ₦5 million ($3,346). Banks and licensed VASPs must file suspicious activity reports.

What About Taxes?

Crypto isn’t tax-free. In June 2025, Nigeria passed the National Tax Administration Act (NTAA) 2025. It takes effect in January 2026. Here’s what you need to know:

• Capital gains from crypto sales are taxable. The rate matches income tax brackets: 7% to 24%.
• VASPs must report user transaction data to the Federal Inland Revenue Service (FIRS).
• Fines for non-compliance start at ₦10 million ($6,693) for the first month of delay, plus ₦1 million ($669) for every month after.
• License suspension or revocation is possible for repeated failures to report.

This isn’t about punishing users. It’s about bringing crypto into the formal economy. The government expects to collect billions in tax revenue as adoption grows.

How Are People Reacting?

Nigerians are still among the world’s top crypto adopters. Between July 2024 and June 2025, the country received $92.1 billion in crypto value-more than South Africa and Kenya combined. People didn’t stop using crypto when banks blocked them. They found ways: P2P trading, cash deposits, mobile wallets.

Now, with regulation, sentiment is shifting. Many users welcome clarity. No more account freezes. No more guessing if your exchange will vanish overnight. But there’s pushback too.

Small traders worry about surveillance. The ability of regulators to access telecom data feels invasive to some. Others fear licensing costs will push out local startups. A young developer in Abuja told me he wanted to build a crypto savings app, but the ₦500 million capital requirement is impossible for him. He’s stuck waiting for a government-backed incubator.

What’s Next?

The SEC plans to approve more licenses in 2026. Dozens of applications are under review. The goal is to have 50+ licensed VASPs by the end of next year.

There’s also talk of integrating Nigeria’s system with other African markets. The African Continental Free Trade Area (AfCFTA) is exploring cross-border crypto regulations. Nigeria could become the region’s compliance hub.

The real test? Will regulation help the unbanked? Right now, over 40% of Nigerian adults don’t have a bank account. Crypto gave them access to global finance. Now, with licensed platforms, they can use regulated apps that offer savings, loans, and insurance-all through their phones.

How to Stay Legal

If you’re using crypto in Nigeria:

• Use only SEC-licensed exchanges. Check the SEC website for the official list.
• Keep records of all trades. You’ll need them for taxes in 2026.
• Avoid platforms promising guaranteed returns. That’s a red flag for scams.
• Don’t use unlicensed P2P platforms for large volumes. If you’re trading over ₦1 million monthly, you could be flagged.
• If you’re a business owner, hire a local compliance lawyer. The rules are complex, and the SEC doesn’t offer free consultations.

Final Thoughts

Nigeria didn’t ban crypto. It didn’t ignore it. It faced the reality: millions of people were using it, and the economy needed structure. The new rules aren’t perfect. They’re expensive. They’re slow. But they’re real.

For the first time, crypto in Nigeria has a legal home. That’s not just about control. It’s about opportunity. For users, it means safety. For businesses, it means legitimacy. For the country, it means a chance to lead Africa’s digital finance future.