Nigeria used to be a wild west for cryptocurrency. Banks blocked transactions. Accounts got frozen. People traded in the shadows. But that changed in 2025. Today, crypto is fully regulated in Nigeria - not banned, not ignored, but officially overseen. If you're trading, investing, or running a crypto business here, you need to understand how the system works now.

How Nigeria Changed Its Crypto Rules

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025. This wasn’t a tweak. It was a full rewrite of the country’s financial rules. For the first time, cryptocurrencies were legally recognized as securities. That means they’re treated like stocks or bonds - not just digital tokens, but financial instruments subject to oversight.

Before this, the Central Bank of Nigeria (CBN) had banned banks from dealing with crypto in 2021. The ban didn’t stop people from using crypto - Nigerians still sent over $92 billion in crypto value between July 2024 and June 2025. But it made life hard. No bank accounts. No clear rules. No protection. The 2025 law ended that chaos. The CBN lifted its ban and released its own guidelines for Virtual Asset Service Providers (VASPs). Now, banks can legally open accounts for licensed crypto firms.

Who Controls Crypto in Nigeria?

The Securities and Exchange Commission (SEC) is now the main regulator. They handle everything from exchanges to token sales. But it’s not just them. The CBN still manages payments and currency-related activities. The Economic and Financial Crimes Commission (EFCC) and Nigerian Financial Intelligence Unit (NFIU) track money laundering. And the National Anti-Money Laundering Act was updated to include virtual assets.

This multi-agency setup is unusual. Most countries put crypto under one regulator. Nigeria spread it out. That means businesses have to deal with multiple sets of rules. If you’re running an exchange, the SEC wants you to meet capital requirements. If you’re offering crypto-to-naira trading, the CBN has its own rules. It’s messy, but it’s designed to cover all angles.

What Do You Need to Operate Legally?

If you want to run a crypto exchange or wallet service in Nigeria, you must get a license from the SEC. The process isn’t simple. You need:

• A paid-up capital of at least ₦500 million ($335,000)
• A fidelity bond to cover customer losses
• Registration as a Nigerian company
• A physical office in Nigeria
• Nigerian citizens in key management roles

The SEC started issuing provisional licenses in late 2024. Only two platforms - Busha and Quidax - got them first. Dozens more are waiting. The vetting process is slow. Regulators are checking everything: who owns the company, where the servers are, how they handle user funds. Delays are common. Even established companies are stuck in paperwork.

What’s Allowed - and What’s Not

You can legally buy, sell, and trade Bitcoin, Ethereum, and other cryptocurrencies through licensed platforms. NFTs are allowed too - but only if they’re sold as investments. If you’re selling digital art with no financial promise, you’re fine. But if you’re marketing an NFT as a way to earn returns, it’s treated like a security. That means it needs SEC approval.

Ponzi schemes are banned. Period. The SEC can now access telecom records to track down fraudsters. They’ve already shut down several fake investment apps. If you’re running a “crypto yield farm” that promises 10% weekly returns, you’re breaking the law.

Peer-to-peer (P2P) trading is still allowed. You can still buy crypto from someone on WhatsApp or Telegram. But if you’re doing it at scale - like running a P2P marketplace - you need a license. The law doesn’t target individual users. It targets businesses.

What About Taxes?

Crypto isn’t tax-free. In June 2025, Nigeria passed the National Tax Administration Act (NTAA) 2025. It takes effect in 2026. Under this law, VASPs must report all transactions. Users must declare crypto gains as income. If you sell Bitcoin for a profit, you owe tax.

Penalties are steep. A VASP that doesn’t file on time gets fined ₦10 million ($6,693) in the first month. For every month after that, it’s another ₦1 million ($669). The SEC can suspend or cancel a license if a company doesn’t pay. This isn’t a warning. It’s enforcement.

How Are People Reacting?

Nigerians are still among the biggest crypto users in the world. Over 20 million people own digital assets. Many bought crypto during the ban, using P2P platforms to bypass banks. Now, with legal clarity, some are moving to licensed exchanges. Others are nervous.

Concerns are real. People worry about surveillance. The government can now track telecom data linked to crypto transactions. Some fear this could lead to overreach. Others are frustrated by the cost of compliance. A small startup can’t afford ₦500 million in capital. That means big players like Busha and Quidax have an advantage. The market could become dominated by just a few.

Still, most users say they prefer regulation over uncertainty. No more frozen accounts. No more guessing if a transaction is legal. The rules are clear - even if they’re strict.

What’s Next for Crypto in Nigeria?

More licenses are coming. Dozens of companies are in the application pipeline. The SEC is expected to approve more platforms in 2026. The government is also working on integrating crypto into the broader financial system. Think digital naira wallets that support crypto swaps. Or fintech apps that let you pay bills with Bitcoin.

Nigeria is positioning itself as Africa’s crypto hub. It’s not just about control - it’s about opportunity. The regulatory framework is designed to attract foreign investment. It’s meant to create jobs. And it’s built to bring the unbanked into the formal economy.

But success isn’t guaranteed. If the rules become too heavy-handed, users might go back to the shadows. If licensing stays slow, innovation could stall. The real test isn’t whether crypto is legal - it’s whether the system works for everyday people.

What Should You Do Now?

If you’re a user: Use licensed platforms. Busha and Quidax are your safest options. Avoid unregulated apps. Even if they offer better rates, you have no legal protection.

If you’re a business: Start the licensing process now. Talk to a Nigerian lawyer who understands both securities law and crypto. Don’t wait. The SEC isn’t going to make this easier.

If you’re an investor: Watch the tax changes. The NTAA 2025 will hit in 2026. Start keeping records of every trade. You’ll need them.

Crypto isn’t going away in Nigeria. It’s here to stay - and now, it’s under the law.