Is Crypto Regulated in Nigeria? Here's How It Works in 2026

For years, if you traded crypto in Nigeria, you did it in the shadows. Banks blocked transactions. Accounts got frozen. No one knew if you were breaking the law-or just caught in the middle of a bureaucratic mess. That changed in 2025. Today, cryptocurrency in Nigeria isn’t just tolerated-it’s regulated.

What Changed in 2025?

The big shift came when President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025. This wasn’t a tweak. It was a complete rewrite of how Nigeria treats digital assets. For the first time, cryptocurrencies like Bitcoin, Ethereum, and even NFTs used for investment are legally recognized as securities. That means they’re now under the same rules as stocks, bonds, and mutual funds.

The Securities and Exchange Commission (SEC) became the main watchdog. Before 2025, the Central Bank of Nigeria (CBN) was the only voice in the room-and it had banned banks from dealing with crypto. That ban was lifted in December 2023, but without clear rules, banks still didn’t know what to do. The ISA 2025 fixed that. Now, the SEC sets the rules, and the CBN handles the banking side. Two agencies, one goal: bring crypto out of the dark.

Who Needs a License?

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. These are called Virtual Asset Service Providers (VASPs). The SEC has two main licensing categories: one for exchanges, another for custody and storage services. Both require:

• A minimum paid-up capital of ₦500 million ($334,000)
• A fidelity bond to protect users’ funds
• Registration with the Corporate Affairs Commission (CAC)
• A physical office in Nigeria
• Nigerian nationals in key management roles

By late 2024, only two companies got provisional licenses: Busha and Quidax. Dozens more are waiting. The process isn’t fast. The SEC is checking every application like a forensic audit. They’re looking at ownership structures, cybersecurity systems, anti-fraud controls, and even the backgrounds of company directors. It’s strict-but that’s the point.

What About Peer-to-Peer Trading?

If you’re just buying Bitcoin from a friend using P2P apps like Paxful or LocalBitcoins, you’re not breaking the law. The regulations target businesses, not individuals. But here’s the catch: if you’re doing it at scale-running a P2P operation, advertising it as a service, or taking a cut-you’re now a VASP and need a license.

The SEC hasn’t cracked down on casual traders. But they’ve made it clear: if you’re profiting from facilitating trades, you’re in their crosshairs. Telecom records can be accessed during investigations. If you’re flagged for suspicious activity, your phone number and transaction history might be pulled. That’s new. And it’s meant to stop scams.

What About NFTs and Tokens?

Not all digital assets are treated the same. If you’re buying an NFT of a digital artwork for fun? Fine. But if that NFT is sold as an investment-promising royalties, profit-sharing, or future value-it’s a security. That means it falls under SEC rules. The same goes for tokens issued by startups. If they’re marketed as a way to earn returns, they’re regulated.

This is a big deal. Many Nigerian startups tried to raise money by selling tokens in 2021 and 2022. Those projects were often scams. Now, if you want to launch a token, you have to file a full disclosure document with the SEC. No more vague whitepapers. No more promises of 10x returns. If you lie, you go to jail.

Taxes Are Now Official

Crypto isn’t just regulated-it’s taxed. The Nigeria Tax Administration Act (NTAA) 2025 took effect in January 2026. Now, every crypto transaction that results in a profit is taxable. That includes trading one coin for another, selling for naira, or using crypto to buy goods.

VASPs are required to report all user transactions to the Federal Inland Revenue Service (FIRS). If you make ₦500,000 from trading Bitcoin and don’t report it, you’re at risk. Penalties are steep: ₦10 million ($6,693) for the first month of non-compliance, plus ₦1 million ($669) every month after that. The SEC can suspend or revoke a license if a company doesn’t report.

For individuals, it’s not as strict yet. But the FIRS is building a system to track crypto wallets linked to Nigerian bank accounts. If you’re making consistent profits, expect a letter soon.

Who’s in Charge?

Nigeria’s system is messy-but intentional. Four agencies work together:

• SEC: Regulates crypto as securities. Licenses exchanges, enforces disclosure rules.
• CBN: Oversees banking relationships. Lets banks open accounts for licensed VASPs.
• EFCC: Investigates fraud, money laundering, and scams. Can freeze assets.
• NFIU: Monitors suspicious transactions across banks and crypto platforms.

This multi-agency setup is rare. Most countries have one regulator. Nigeria has four. It’s confusing for businesses, but it’s designed to catch every angle of fraud. A scammer can’t hide behind one loophole-they’ve got to dodge four systems.

How Are People Reacting?

Nigerians still love crypto. Between July 2024 and June 2025, the country received $92.1 billion in crypto value-more than any other African nation. People use it to send money home, protect savings from inflation, and buy goods from global sellers.

But the mood has shifted. Before 2025, users were angry. They lost bank accounts. They couldn’t cash out. Now, many are relieved. Legal certainty means they can open business bank accounts. They can hire employees. They can attract investors.

Still, there’s fear. Some worry the government will eventually ban P2P trading. Others are scared of surveillance. The ability to access telecom records and wallet data feels invasive. Social media is full of posts asking: “Is the SEC watching my wallet?”

The truth? They’re not watching you. But if you’re running a business or moving large sums, they’re watching that.

What’s Next?

More licenses will be granted. The SEC has over 50 applications in review. International exchanges like Binance and Kraken are applying-but they’ll need to set up local offices and hire Nigerian staff. That’s expensive. It could push smaller players out.

The government is also working on a National Blockchain Policy to encourage tech development. But that’s separate from crypto regulation. It’s about infrastructure, not coins.

The big question: Will this work? Experts say yes-if the government sticks to its plan. Nigeria has the largest crypto user base in Africa. It also has the most detailed rules. If they can make compliance manageable, Nigeria could become the fintech hub of the continent.

But if the rules get too heavy, if licenses cost too much, or if enforcement turns into harassment, users will find ways around it. They always have.

What Should You Do?

If you’re a trader: Keep records. Know your gains. Don’t ignore tax notices. You’re not breaking the law-but you’re not invisible.

If you’re running a crypto business: Get legal help. Don’t try to navigate this alone. The SEC doesn’t give hand-holding. You need a lawyer who understands both Nigerian securities law and blockchain tech.

If you’re just using crypto to send money or save: You’re fine. But stay aware. Rules can change. What’s allowed today might need a license tomorrow.

Nigeria didn’t ban crypto. It didn’t ignore it. It took control. And now, the world is watching to see if it can make regulation work for its people-not just its banks.