Is Crypto Regulated in Nigeria? 2025 Legal Framework Explained

For years, Nigeria’s relationship with cryptocurrency was a mess. Banks blocked transactions. Accounts got frozen. People traded anyway-using peer-to-peer apps, cash, and WhatsApp groups. The government didn’t ban crypto outright, but it didn’t legalize it either. That changed in 2025.

Crypto is Now Legally Regulated in Nigeria

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025. This wasn’t just a tweak. It was a full rewrite of how digital assets are treated under Nigerian law. For the first time, cryptocurrencies like Bitcoin, Ethereum, and others are officially recognized as securities. That means they’re no longer in a legal gray zone. They’re now under the same regulatory umbrella as stocks and bonds.

The Securities and Exchange Commission (SEC) became the main regulator. It now has full authority to license, monitor, and enforce rules for all crypto businesses operating in Nigeria. This includes exchanges, wallet providers, and platforms that offer token sales or NFTs marketed as investments.

What’s Required to Operate Legally?

If you want to run a crypto exchange or any kind of Virtual Asset Service Provider (VASP) in Nigeria, you need a license from the SEC. It’s not simple. The rules are strict and detailed:

• You must have a minimum paid-up capital-amounts vary by business type, but it’s in the millions of naira.
• You need a Nigerian corporate registration and a physical office inside the country.
• Key management roles must be filled by Nigerian residents.
• You’re required to get a fidelity bond, which acts like insurance against fraud or theft.
• You must comply with anti-money laundering rules under the amended National Anti-Money Laundering Act.

By late 2024, only two platforms had received provisional licenses: Quidax and Busha. Dozens more are in the pipeline, but the SEC is moving slowly. They’re vetting every application thoroughly. Delays are common. Even established companies had to wait months.

Who’s Watching Over the System?

Nigeria didn’t just hand control to the SEC and call it a day. They built a team. The SEC works hand-in-hand with the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU). This multi-agency approach is rare in Africa. Most countries rely on one regulator. Nigeria uses five.

Here’s how it breaks down:

• SEC handles crypto exchanges, token sales, and investment products.
• CBN oversees crypto-related banking services-like allowing banks to open accounts for licensed VASPs.
• EFCC and NFIU investigate fraud, money laundering, and illegal schemes.

This means if you’re running a crypto business, you’re not just dealing with one set of rules. You’re navigating overlapping jurisdictions. One misstep with KYC records could trigger an EFCC probe. A failed audit could get your license suspended by the SEC.

What About Taxes?

Yes, crypto is taxable now. In June 2025, the Nigeria Tax Administration Act (NTAA) 2025 was signed. It takes effect in 2026. Here’s what you need to know:

• Profits from trading crypto are taxable as income.
• Businesses that accept crypto as payment must report those transactions.
• Penalties for non-compliance start at ₦10 million ($6,693) for the first month of missed reporting.
• Each additional month adds ₦1 million ($669) to the fine.
• The SEC can suspend or revoke licenses for repeated failures.

There’s no blanket tax rate yet. The Federal Inland Revenue Service (FIRS) is still working out how to classify different types of crypto income-whether it’s capital gain, business income, or something else. But the message is clear: if you’re making money from crypto, the government expects to see it.

What’s Not Regulated?

Not everything involving crypto is caught in this net. Artistic NFTs-digital art, music, collectibles sold purely for their creative value-are exempt, as long as they’re not marketed as investment opportunities. If someone sells a digital painting and says, “This NFT will increase in value,” that’s a security. If they say, “Here’s a unique piece of art,” it’s not.

Peer-to-peer trading between individuals? Still allowed. You can buy Bitcoin from a friend using mobile money or cash. The law doesn’t target users. It targets businesses that facilitate transactions at scale. That’s a key distinction. The government isn’t trying to stop people from owning crypto. It’s trying to stop scams, money laundering, and unlicensed platforms.

How Are People Reacting?

Nigerians are still among the top crypto adopters in the world. Between July 2024 and June 2025, over $92 billion in crypto value flowed into Nigeria. That’s nearly double what South Africa received. People didn’t stop using crypto during the ban-they just got more creative.

Now, with legal clarity, sentiment is shifting. Many users are relieved. No more bank account freezes. No more fear of being labeled a criminal just for using Binance or Paxful. But there’s still worry.

Some users fear the government will use the new surveillance powers to track every transaction. The law gives regulators access to telecom records for investigations. That’s meant to catch fraudsters, but it raises privacy questions.

Others are frustrated by the cost of compliance. Small startups can’t afford the ₦500 million paid-up capital requirement. The licensing process is slow. Some believe the rules favor big players like Quidax and Busha, making it harder for new entrants to compete.

What’s Next?

The regulatory framework is still new. The SEC has only issued two provisional licenses so far. More are expected in 2025 and 2026. The government is also looking at integrating Nigeria’s crypto rules with regional African initiatives, possibly aligning with the African Continental Free Trade Area (AfCFTA) digital finance protocols.

One thing is clear: Nigeria isn’t trying to kill crypto. It’s trying to control it. The goal is to turn a chaotic, underground market into a structured, transparent industry that can attract foreign investment, create jobs, and bring financial services to the unbanked.

For users, that means more secure platforms. For businesses, it means higher barriers to entry. For the economy, it could mean a new wave of fintech innovation-if the rules are applied fairly and consistently.

Can You Still Use Crypto in Nigeria?

Yes. Absolutely. And you’re not breaking the law by holding or trading it personally. Banks can now legally serve licensed crypto businesses. You can buy, sell, and store crypto through approved platforms. You just can’t use unlicensed exchanges or platforms that ignore the rules.

If you’re an individual, your main job is to use licensed services. If you’re running a business, you need to get licensed. The path is clearer than it’s ever been. The risk isn’t from using crypto-it’s from using the wrong platform.