Legal Status of Cryptocurrencies in Nigeria: What’s Allowed, What’s Not in 2025

Back in 2021, if you tried to buy Bitcoin using your Nigerian bank account, your transaction would’ve been blocked. Banks were ordered to cut off crypto-related payments. The message was clear: digital assets were a threat. But by 2025, that story flipped completely. Nigeria didn’t just soften its stance-it rewrote the rules. Today, cryptocurrency isn’t banned. It’s regulated. And that change is reshaping how millions of Nigerians use, trade, and invest in digital assets.

Bitcoin and Crypto Are Not Illegal in Nigeria

Let’s clear up the biggest myth first: cryptocurrencies are not illegal in Nigeria. You can still buy, sell, and hold Bitcoin, Ethereum, or any other digital asset without breaking the law. The real issue isn’t ownership-it’s how you use it. The Nigerian naira remains the only legal tender for paying taxes, buying goods in stores, or settling official debts. Crypto can’t replace it. But it can sit beside it-as an investment, a savings tool, or a way to send money across borders.

This isn’t just a policy tweak. It’s the result of years of pressure from users, startups, and global markets. Nigeria has consistently ranked as the world’s top country for peer-to-peer crypto trading. Even during the 2021 bank ban, Nigerians kept trading. They used cash transfers, offshore wallets, and informal networks. The government couldn’t stop it. So instead of fighting it, they decided to control it.

The 2025 Law That Changed Everything

The turning point came on March 25, 2025, when President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA 2025). This 226-page law didn’t just update old rules-it built a new system from scratch. For the first time, Nigeria officially recognized crypto assets as securities. That means they’re now treated like stocks, bonds, or mutual funds under the law.

The ISA 2025 defines a crypto asset as: "a digital representation of value that can be transferred, digitally traded and used for payment or investment purposes." Notice what’s missing? Digital versions of the naira or other fiat currencies. That’s intentional. The law isn’t trying to replace money-it’s regulating investment products.

Before this law, the Securities and Exchange Commission (SEC) had no real power over crypto. Now, it does. The SEC can:

• License and monitor all cryptocurrency exchanges and Virtual Asset Service Providers (VASPs)
• Shut down platforms that break the rules
• Remove executives from their positions
• Conduct audits and demand financial records

Platforms like Quidax and Busha already got early approvals. Others are still waiting. The process is slow because the SEC is checking every detail-KYC systems, security protocols, anti-fraud measures. It’s not about blocking innovation. It’s about making sure it’s safe.

Who’s Watching Crypto in Nigeria Now?

It’s not just the SEC anymore. A whole network of agencies now shares responsibility:

• Securities and Exchange Commission (SEC): Regulates crypto as a security. Handles licensing, trading platforms, and investor protection.
• Central Bank of Nigeria (CBN): Still controls banking rules. Can’t ban crypto transactions anymore, but ensures banks don’t destabilize the financial system.
• Economic and Financial Crimes Commission (EFCC): Investigates fraud, scams, and money laundering linked to crypto.
• Nigerian Financial Intelligence Unit (NFIU): Tracks suspicious transactions to stop money laundering and terrorist financing.

This multi-agency approach is new. Before 2025, there was confusion-who was in charge? Now, everyone has a role. If a crypto platform is running a Ponzi scheme, the EFCC can freeze accounts. If it’s not reporting taxes, the SEC can revoke its license. If it’s laundering cash through fake trades, the NFIU steps in.

What About NFTs? Are They Regulated Too?

Not all NFTs are treated the same. If you buy a digital artwork-say, a profile picture of a cartoon ape-it’s not regulated. It’s just a collectible. But if someone sells you an NFT that promises profit-sharing, royalties, or dividends, that’s a security. And that’s where the SEC comes in.

For example, if a company sells NFTs claiming you’ll earn 10% monthly returns from their blockchain project, that’s illegal unless they’re licensed by the SEC. The law targets financialized NFTs, not digital art. This distinction matters. Artists can still mint and sell their work. Investors can’t be tricked into buying fake investment products.

Crypto Taxation: The 2026 Rule Change

By 2026, the Nigeria Tax Administration Act (NTAA 2025) will take full effect. This law makes it clear: crypto profits are taxable. And the penalties for ignoring it are steep.

Virtual Asset Service Providers (VASPs)-like exchanges and wallet services-are now legally responsible for collecting and reporting taxes. If they fail:

• First month of non-compliance: ₦10 million ($6,693) fine
• Each additional month: ₦1 million ($669) extra

The SEC can suspend or cancel their license if they don’t comply. This isn’t just about revenue. It’s about legitimacy. When the government treats crypto like a real industry, it signals to the world that Nigeria is serious about building a trustworthy financial system.

Between July 2024 and June 2025, Nigeria received an estimated $92.1 billion in crypto value. That’s nearly double what South Africa received. If you’re trading at that scale, you need a tax system that keeps up.

What’s Still Risky or Illegal?

Even with the new laws, some activities remain dangerous-or outright illegal:

• Ponzi schemes: Promising high returns with no real product? That’s a crime. The SEC now has access to telecom records to trace these operations.
• Unlicensed trading platforms: If a site isn’t registered with the SEC, don’t use it. There’s no protection if you lose money.
• Using crypto to evade taxes: Hiding crypto income from the tax authority is now easier to catch-and more costly.
• Banking fraud: Trying to trick banks into processing crypto payments through fake invoices? That’s fraud, and the EFCC will come after you.

There’s no gray area here. The law is clear: if you’re in the crypto business, you play by the rules-or you get shut down.

How Has This Changed Everyday Life?

For ordinary Nigerians, the change is subtle but powerful. Before, using crypto felt like a workaround. Now, it’s a recognized financial tool. People can:

• Open bank accounts with licensed crypto firms
• Invest in tokenized stocks or bonds through regulated platforms
• Use crypto for international remittances without fear of account freezes
• Save in stablecoins as an alternative to a depreciating naira

Platforms like PiggyVest and Cowrywise, which let people invest in government bonds, are now under clearer rules. Bamboo lets Nigerians buy U.S. stocks for as little as $10-and that’s now legal under the ISA 2025. Even commodities trading through warehouse receipts is now regulated, giving farmers and traders new ways to access capital.

What’s changed most? Confidence. People aren’t afraid to talk about crypto anymore. Startups are hiring. Investors are putting money in. The market isn’t just surviving-it’s growing.

What’s Next for Nigeria’s Crypto Scene?

The ISA 2025 isn’t the end. It’s the beginning. Regulators are still learning how to handle new types of tokens, DeFi protocols, and cross-border transactions. The next few years will see:

• More licensing rounds for crypto exchanges
• Guidelines for decentralized finance (DeFi) platforms
• Integration of crypto reporting into the national tax system
• Potential pilot projects for a central bank digital currency (CBDC)

Nigeria’s model is being watched across Africa. Countries like Kenya, Ghana, and South Africa are watching how this plays out. If Nigeria can balance innovation with safety, it could become the blueprint for the continent.

One thing’s certain: crypto isn’t going away. The question isn’t whether Nigeria will regulate it. It’s how well it will do it. So far, the signs are good.