Crypto Overview in Nigeria

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Cryptocurrencies are legal and regulated in Nigeria. The country’s approach has evolved significantly over the past five years. In February 2021, the Central Bank of Nigeria (CBN) prohibited banks from servicing crypto businesses, pushing trading into peer-to-peer channels. The CBN reversed that position in December 2023, issuing Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers, which restored fiat banking access for SEC-licensed VASPs.

The regulatory foundation was then decisively strengthened by the Investments and Securities Act (ISA) 2025, signed into law on March 31, 2025. Section 357 of the ISA 2025 formally classifies virtual assets, including cryptocurrencies, tokens, and blockchain-based instruments, as securities. This gives the Securities and Exchange Commission (SEC) full statutory authority to license, supervise, and sanction all crypto operators in Nigeria. The SEC applies a substance-over-form approach, classifying digital assets by economic function as securities tokens, utility tokens, or payment tokens. Assets with uncertain classification require a no-objection application to the SEC before launch or operation.

Cryptocurrencies are not recognized as legal tender. Banks may not hold or deal in crypto directly, but they can open and operate accounts for SEC-licensed VASPs following the December 2023 CBN guidelines.

Tax Treatment

Nigeria’s crypto tax framework was comprehensively overhauled by four Tax Reform Acts signed by President Tinubu on June 26, 2025, effective January 1, 2026. The Nigeria Tax Act (NTA) 2025 replaced the earlier flat 10% capital gains tax introduced under the Finance Act 2023. Gains from trading, transfers, mining, staking, and airdrops are now taxed under the standard income tax regime: progressive individual rates from 7% (income below N300,000) up to 25% (income above N3.2 million). Individuals earning below N800,000 annually are exempt. Companies pay the standard 30% Companies Income Tax rate.

The Nigerian Tax Administration Act (NTAA) 2025 introduced strict enforcement measures aligned with the OECD’s Crypto-Asset Reporting Framework (CARF), which also took effect on January 1, 2026. All VASP user accounts must be linked to National Identification Numbers (NIN) for individuals or Corporate Affairs Commission (CAC) registration numbers for businesses. VASPs must submit monthly activity reports to the Nigeria Revenue Service (formerly FIRS) detailing user transactions, asset types, and naira values. Records must be retained for a minimum of seven years. Non-compliance carries penalties of N10 million for the first month and N1 million per subsequent month, with potential SEC license suspension. A 7.5% VAT applies to fees and commissions charged by crypto platforms, though not to the underlying crypto assets themselves.

Regulatory Oversight

The SEC serves as the primary regulator for VASPs, digital asset exchanges, custodians, and token issuers, with authority codified in the ISA 2025. The CBN oversees monetary policy, financial stability, and bank-VASP relationships through its December 2023 guidelines. The Nigerian Financial Intelligence Unit (NFIU) receives suspicious transaction reports and currency transaction reports from VASPs. The Economic and Financial Crimes Commission (EFCC) handles criminal enforcement of crypto-related financial crimes, while the Special Control Unit Against Money Laundering (SCUML) supervises designated non-financial businesses. Tax enforcement falls under the Nigeria Revenue Service, the restructured successor to the Federal Inland Revenue Service (FIRS) under the 2025 reforms.

Business Environment

Banking Relationships

The December 2023 CBN guidelines restored bank access for SEC-licensed VASPs after a nearly three-year prohibition. Banks may now open and operate accounts for licensed crypto businesses, enabling fiat deposits and withdrawals. To obtain banking services, VASPs must hold a valid SEC license or provisional registration, meet minimum capital requirements, link all customer accounts to Bank Verification Numbers (BVN), and maintain robust AML/CFT compliance protocols. Banks must also conduct independent due diligence on VASP applicants.

In practice, a gap remains between regulatory permission and individual bank-level risk appetite. Some bank customers still report monitoring or restrictions for crypto activity. The EFCC has also secured court orders freezing accounts at fintech companies linked to unauthorized forex trading and crypto money laundering. Established exchanges that have obtained SEC licenses maintain functioning banking relationships. Nigeria’s January 2026 SEC capital requirement increases, which raise the threshold for Digital Asset Exchanges (DAXs) to N2 billion with a compliance deadline of June 30, 2027, may further concentrate market access among well-capitalized operators.

Innovation Support

Nigeria launched the eNaira in October 2021 as Africa’s first central bank digital currency, built on Hyperledger Fabric. Adoption has remained very low, with the eNaira representing approximately 0.36% of currency in circulation as of early 2024 and an estimated 98.5% of registered wallets inactive. The CBN partnered with Gluwa in March 2024 to boost adoption and indicated a strategic review of the CBDC in 2025.

In parallel, the Africa Stablecoin Consortium received CBN regulatory sandbox approval in January 2024 to pilot the cNGN, a naira-pegged stablecoin built on multiple public blockchains including Ethereum, Polygon, and Tron. The National Information Technology Development Agency (NITDA) approved a National Blockchain Policy in May 2023 aimed at integrating blockchain into public administration and economic sectors. The Nigeria Inter-Bank Settlement System partnered with Zone’s Blockchain Network in August 2024 for blockchain-based payment processing. SEC crypto marketing rules introduced in mid-2025 require influencer approval and paid promotion disclosure for crypto-related content, with penalties of up to N10 million or three years’ imprisonment for violations.

Crypto License in Nigeria

Obtaining a crypto license in Nigeria requires registration with the Securities and Exchange Commission (SEC) through the Accelerated Regulatory Incubation Programme (ARIP), launched in June 2024. ARIP applies to any VASP or Digital Investment Service Provider (DISP) offering services in or to Nigeria, whether locally incorporated or foreign. The process culminates in full registration as a Digital Asset Exchange (DAX), Digital Asset Custodian (DAC), Digital Asset Offering Platform (DAOP), or related category under the ISA 2025 framework.

Licensing Requirements

Applicants must be Nigerian companies incorporated under the Companies and Allied Matters Act (CAMA) 2020, with the CEO or Managing Director resident in Nigeria. The January 2026 SEC capital floor revision raised minimum paid-up capital requirements significantly. Digital Asset Exchanges must now meet a minimum capital requirement of N2 billion (up from N500 million), with a compliance deadline of June 30, 2027. Digital Asset Offering Platforms require N1 billion, while Digital Asset Platform Operators and Digital Asset Intermediaries require N500 million each.

All VASP applicants must implement KYC and AML/CFT systems compliant with NFIU requirements, maintain a physical office in Nigeria, post fidelity bonds at a minimum of 25% of paid-up capital, and link all user accounts to BVN and NIN identifiers. Ongoing obligations include quarterly reporting on user growth, transaction volumes, and compliance metrics, plus the monthly transaction reporting to the Nigeria Revenue Service introduced under the NTAA 2025.

Authorized Activities

Under the ISA 2025, registered digital asset entities may offer a range of regulated services. Digital Asset Exchanges are authorized to operate organized trading venues for buying, selling, and exchanging virtual assets, including peer-to-peer transaction infrastructure. Digital Asset Custodians may hold and safeguard digital assets on behalf of clients. Digital Asset Offering Platforms may facilitate token issuance and initial digital asset offerings. Stablecoin issuers are separately regulated under ISA 2025, with requirements for licensing, reserve backing, and AML/KYC obligations that reflect the sector’s significance in Nigerian markets.

The ISA 2025 also codifies legal ownership and transfer rights for digital assets for the first time in Nigerian statute, providing statutory protection for tokenized securities and blockchain-based investment instruments operating under SEC registration.

Application Process and Timeline

The ARIP process begins with a mandatory Initial Assessment Filing submitted to the SEC, which reviews the submission within 30 days to determine whether the proposed digital asset qualifies as a security under the ISA 2025. The assessment filing fee is N200,000 (non-refundable). Following a satisfactory assessment, applicants submit a formal ARIP application through an accredited solicitor or adviser, with a non-refundable processing fee of N2 million. The SEC then conducts a fit-and-proper-persons test, operational due diligence, and coordinates security screening through the Office of the National Security Adviser (ONSA).

Successful applicants receive an Approval-in-Principle (AIP) valid for up to 12 months, during which they must demonstrate full compliance before obtaining final registration. As of 2025, only Quidax and Busha Digital have received provisional ARIP licenses (August 2024), with their full registration still in progress. Other applicants including Yellow Card, Borderlesspay, and Bitnob have applied within the ARIP pipeline. The SEC pledged in February 2025 to accelerate full licensing for all qualifying applicants, acknowledging delays in the multi-agency process.

Market Characteristics

Adoption Patterns

Nigeria is one of the world’s leading cryptocurrency markets by adoption. The Chainalysis 2024 Global Crypto Adoption Index ranked Nigeria second globally (behind India). The 2025 index placed it sixth globally while maintaining its position as the leading crypto market in Sub-Saharan Africa. Nigeria received over $92.1 billion in on-chain crypto value during the 2024-2025 measurement period, nearly triple the volume of the next African country. Adoption is driven by persistent inflation and naira depreciation, foreign currency access difficulties related to capital controls, stablecoin usage as a dollar-denominated savings and remittances instrument, and a large young population, with over 70% of Nigerians under 30.

Industry Focus

The Nigerian crypto ecosystem centers on exchange services, stablecoin-based remittances, and peer-to-peer trading. Stablecoins play a particularly important role, functioning as accessible dollar-denominated savings instruments in an environment of currency volatility. The SEC’s introduction of stablecoin-specific regulatory requirements under the ISA 2025, covering licensing, reserve backing, and AML/KYC obligations for stablecoin issuers, reflects the sector’s significance to Nigerian retail users.

Regulatory Evolution

Nigeria’s regulatory trajectory has shifted from restriction to structured supervision. The February 2021 banking ban, while not criminalizing crypto ownership, pushed the market underground into P2P channels. The December 2023 reversal and the ISA 2025 represent a pivot toward regulating rather than prohibiting the sector. The Binance confrontation in early 2024, which included the detention of executives Tigran Gambaryan and Nadeem Anjarwalla in February 2024, removal of the naira from Binance’s platform, and the subsequent humanitarian release of Gambaryan in October 2024, underscored the government’s willingness to take enforcement action against non-compliant global operators.

Nigeria was added to the FATF grey list in February 2023 for strategic AML/CFT deficiencies and was removed on October 24, 2025, after completing its agreed action plan. Nigeria achieved Compliant or Largely Compliant status on 37 of 40 FATF Recommendations. Nigeria is a member of GIABA (the Inter-Governmental Action Group against Money Laundering in West Africa), which conducted its mutual evaluation. The ISA 2025 is cited by regional commentators as a potential model for digital asset regulation across Africa, particularly for its statutory classification of virtual assets and the structured ARIP licensing pathway.