Nigerian crypto laws: What’s allowed, banned, and how it affects users in 2025

When it comes to Nigerian crypto laws, the legal framework governing cryptocurrency use, trading, and taxation in Nigeria. Also known as Nigeria’s digital asset regulations, it’s a mix of outright restrictions and quiet tolerance—forcing users to work around the system instead of through it. In 2021, the Central Bank of Nigeria, the nation’s primary financial regulator that banned banks from processing crypto transactions. Also known as CBN, it told banks to cut off crypto exchanges. But instead of killing crypto, it pushed millions into peer-to-peer trading. Today, Nigeria is one of the top countries in the world for P2P Bitcoin volume—despite the ban.

So what’s actually illegal? Banks can’t hold crypto accounts or process payments to exchanges. Exchanges like Binance and Luno can’t operate as local financial institutions. But if you buy Bitcoin from a friend using PayPal, mobile money, or cash, that’s not against the law. The Nigerian Securities and Exchange Commission, the agency that now oversees crypto as a virtual asset class. Also known as SEC Nigeria, it stepped in after the CBN’s ban to create a licensing path for exchanges. A few platforms got registered, but most users still trade outside the system because the licensed ones are slow, expensive, and limited.

Taxation is another gray area. The Federal Inland Revenue Service says crypto gains are taxable, but there’s no clear system to track them. Most traders don’t report. The government knows this—but enforcement is nearly impossible when 80% of trades happen off-exchange. Meanwhile, young Nigerians use crypto to send money abroad, pay for online services, and even start businesses. It’s not a loophole—it’s a workaround built out of necessity.

What you’ll find in the posts below are real examples of how Nigerian users navigate these laws. You’ll see how P2P platforms thrive, how local traders avoid bank blocks, and why some crypto projects refuse to serve Nigeria altogether. There’s no sugarcoating: the rules are tight, the penalties are vague, and the system is designed to make crypto hard. But if you know where to look, Nigeria still offers one of the most active, resilient crypto communities in Africa.