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

For years, if you traded crypto in Nigeria, you did it in the gray zone. Banks blocked transactions. Accounts got frozen. No one knew if you were breaking the law - or just caught in the crossfire of bureaucratic confusion. That changed in 2025. Crypto regulation in Nigeria is no longer a question of whether it’s allowed - it’s about how you comply.

How Nigeria Finally Got Its Crypto Rules Right

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025, turning crypto from a legal gray area into a regulated asset class. This wasn’t a tweak. It was a full rewrite of the country’s financial rules. For the first time, digital currencies like Bitcoin and Ethereum are officially recognized as securities under Nigerian law. The Securities and Exchange Commission (SEC) became the main regulator, with clear power to license, monitor, and punish bad actors.

Before this, the Central Bank of Nigeria (CBN) had banned banks from handling crypto transactions in 2021. That didn’t stop people - Nigerians kept trading. In fact, between July 2024 and June 2025, over $92 billion in crypto flowed into the country. That’s more than double what South Africa saw. The government realized: you can’t ban what millions are already using. So they chose to regulate it instead.

Who Needs a License, and How Do You Get One?

If you run a crypto exchange, wallet service, or any platform that lets people buy, sell, or trade digital assets in Nigeria, you need a license from the SEC. These are called Virtual Asset Service Providers (VASPs). The SEC laid out strict rules in its Digital Assets Rules 2022, now enforced under the ISA 2025.

To get licensed, you must:

• Be a registered Nigerian company
• Have a minimum paid-up capital (amounts vary by license type)
• Post a fidelity bond to cover customer losses
• Have a physical office in Nigeria
• Appoint Nigerian-based management
• Pass background checks and anti-money laundering audits

By late 2024, only two exchanges - Busha and Quidax - got provisional licenses. Dozens more are waiting. The process is slow because the SEC is being thorough. They’re not just checking paperwork. They’re looking at how you store assets, how you verify users, and whether your systems can stop fraud.

What’s Still Not Allowed?

The rules aren’t blanket permission. Some things are still off-limits:

• Ponzi schemes are explicitly banned - and regulators can now access telecom records to track them down.
• Unlicensed trading platforms can’t operate. If you’re running a peer-to-peer app without SEC approval, you’re breaking the law.
• Investment-focused NFTs (those sold as financial products) are regulated. But NFTs for art, music, or collectibles? They’re fine unless marketed as investments.
• Banking access is now allowed - but only for licensed VASPs. Unlicensed crypto businesses still can’t open corporate bank accounts.

The SEC also made it clear: if you’re selling crypto as a way to make money - especially with promises of high returns - you’re offering a security. That means full disclosure, audits, and compliance. No more shady ICOs.

Who’s Watching? The Multi-Agency Approach

Nigeria didn’t just hand crypto to one agency and walk away. The SEC works with the Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the Central Bank of Nigeria. This isn’t common. Most countries give crypto to one regulator. Nigeria built a team.

The EFCC handles fraud and criminal activity. The NFIU tracks suspicious transactions. The CBN manages banking access and payment flows. This overlap can be confusing for businesses - but it’s designed to catch everything. A crypto platform can’t hide behind one loophole because three agencies are watching.

The National Anti-Money Laundering Act was also updated to include virtual assets. That means crypto transactions now fall under the same reporting rules as cash movements. If you’re moving over ₦5 million ($3,346) in crypto, your platform has to report it.

What About Taxes? Yes, Crypto Is Taxable Now

In June 2025, Nigeria passed the National Tax Administration Act (NTAA) 2025. It takes effect in 2026. This law makes crypto profits taxable. If you sell Bitcoin for a profit, you owe capital gains tax. If you earn crypto as income (from mining, staking, or a job), it’s treated like salary.

VASPs must now collect and report user transaction data to the Federal Inland Revenue Service (FIRS). Non-compliance comes with heavy fines: ₦10 million ($6,693) for the first month of missed reporting, plus ₦1 million ($669) every month after. The SEC can suspend or shut down a license for repeated failures.

This is a big shift. Before, most Nigerians didn’t report crypto gains. Now, the system is built to track them. The government isn’t trying to scare people away - it’s trying to bring crypto into the formal economy.

How Are People Reacting?

Nigerians are still among the top crypto adopters in the world. But opinions are mixed.

On one side, there’s relief. After years of bank freezes and legal uncertainty, having clear rules means businesses can plan. Investors feel safer. Startups can raise money without fear of sudden crackdowns.

On the other side, there’s frustration. The licensing process is expensive and slow. Many small traders worry the rules will push them toward unregulated platforms. Some fear government surveillance - especially since regulators can now request phone records to trace crypto-linked fraud.

Peer-to-peer trading is still alive. Many users still use platforms like Paxful or LocalBitcoins. But now, those platforms face pressure to register. If they don’t, users could lose access to bank transfers or face legal risks.

What’s Next for Crypto in Nigeria?

The road ahead isn’t smooth, but it’s clear. More licenses will be granted. The SEC plans to approve dozens of VASPs in 2025 and 2026. The government is also working on a national blockchain policy to encourage innovation - not just in crypto, but in public services, land records, and voting systems.

Nigeria is now competing with South Africa and Kenya for the title of Africa’s crypto leader. But unlike those countries, Nigeria didn’t just slap on a tax. It built a full regulatory system from the ground up.

The big question is whether this will help the unbanked or just create new barriers. Right now, crypto is one of the few financial tools millions of Nigerians can access without a bank. If regulation makes it harder to use, it could hurt more than help.

But if done right - with fair fees, clear rules, and support for small players - Nigeria could turn its crypto boom into a real fintech revolution.

What Should You Do If You Trade Crypto in Nigeria?

If you’re an individual trader:

• Keep records of all buys, sells, and transfers.
• Be ready to report gains when the 2026 tax rules kick in.
• Avoid unlicensed platforms - they could be shut down at any time.
• Use only SEC-registered exchanges like Quidax or Busha.

If you run a business:

• Start the SEC licensing process now. It takes 6-12 months.
• Hire a Nigerian legal advisor who understands both securities law and crypto.
• Set up local operations - remote teams won’t qualify.
• Build compliance into your platform from day one.

The era of guesswork is over. Nigeria’s crypto rules are here to stay. The winners will be those who adapt - not those who wait for the old system to come back.