The long-debated question “Is cryptocurrency legal in Nigeria?” finally received a clear answer in 2025. Yes — digital assets are now legal in the country, but the market operates under a strict regulatory framework that every user is expected to follow.
After several years of policy confusion, restrictions, and back-and-forth decisions, Nigeria has taken a major step forward.
In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025, officially classifying digital assets as securities. For Nigerian crypto investors, this marks a significant turning point.
Quick takeaway: Crypto is legal, but it is not legal tender — you can invest and trade, but you cannot use Bitcoin or other coins for everyday payments instead of the Naira.
Nigeria’s Road to Crypto Regulation
Nigeria’s crypto history has been shaped by repeated bans, warnings, and policy shifts:
| Year | What Happened |
|---|---|
| 2017 | CBN issued warnings to banks about crypto-associated risks. |
| Feb 2021 | Banks were prohibited from servicing crypto exchanges, driving users into P2P trading. |
| May 2022 | SEC released its first framework for digital assets. |
| Dec 2023 | CBN lifted the banking ban for licensed crypto companies. |
| Mar 2025 | ISA 2025 granted digital assets full legal recognition as securities. |
What Does Legal Status Actually Mean?
Under the ISA 2025:
- Crypto is legal: Nigerians may buy, trade, hold, and invest in digital assets without fear of violating the law.
- Crypto is not legal tender: You still must use the Naira for official payments.
- Tighter regulatory oversight: All crypto platforms are required to meet SEC licensing and compliance standards.
This framework provides stability, strengthens investor protection, and allows both local and international companies to operate with clear rules.
Who Regulates Cryptocurrency in Nigeria?
Three main institutions share responsibility:
1. Securities and Exchange Commission (SEC)
- Issues VASP licenses.
- Sets compliance rules and monitors all registered platforms.
2. Central Bank of Nigeria (CBN)
- Regulates how banks interact with crypto businesses.
- Oversees monetary stability as digital asset adoption grows.
3. Nigerian Financial Intelligence Unit (NFIU)
- Ensures AML/CFT compliance.
- Monitors suspicious transactions.
Tip: Always check if a platform holds a valid SEC license before depositing funds.
Compliance, Reporting & Taxes: What Users Must Know
Crypto transactions are no longer hidden from regulators. Key obligations include:
- Capital Gains Tax (from 2026): Up to 25% on profits from crypto trading.
- Exchange reporting: Licensed platforms must report transaction data to the SEC and FIRS.
- Mandatory KYC: No trading without identity verification.
- Penalties for violations: Unlicensed platforms risk being blacklisted or losing their operating rights.
Pro tip: Keep track of your trades — tax documentation will become essential starting in 2026.
Before vs. After: How ISA 2025 Changed the Landscape
| Category | Before 2025 | 2025 Onward |
|---|---|---|
| Legal Status | Undefined, grey area | Officially classified as securities |
| Banking Access | Banks banned crypto firms | Banks allowed to work with licensed VASPs |
| Regulatory Authority | No single supervisor | SEC holds clear regulatory power |
| Licensing | Not required | Mandatory for all service providers |
| Investor Protection | Weak | Stronger safeguards and accountability |
What These Changes Mean for Nigerian Investors
- Higher protection: SEC has the authority to shut down scams and fraudulent exchanges.
- Clarity: Investors no longer have to guess whether crypto activity is allowed.
- Licensed platforms only: Reduces risks from illegal or offshore operators.
- Smoother banking: Transfers between banks and licensed VASPs are easier.
- Tax responsibility: Investors must declare and pay taxes on crypto gains.
How to Invest Safely in Nigeria’s Regulated Crypto Market
- Choose only SEC-licensed platforms.
- Complete all KYC requirements.
- Keep detailed transaction records for tax filing.
- Stay updated — regulations are evolving.
- Diversify: consider mixing crypto with money market funds, USD-denominated funds, or fixed deposits.
Frequently Asked Questions
Can I be arrested for using cryptocurrency in Nigeria?
No. Crypto use is legal. Penalties apply only if you use unlicensed platforms or avoid tax obligations.
Do individuals need a license to buy crypto?
No. Only crypto service providers must obtain SEC approval.
Is there a purchase limit before reporting is required?
Transactions below ₦5 million do not require reporting. Larger transfers must be filed through goAML.
Are all crypto platforms now fully legal?
No. Only SEC-licensed operators are allowed. The SEC maintains a public list of unregistered or irregular platforms.
Conclusion
Nigeria has moved from uncertainty to a fully regulated crypto environment. ISA 2025 delivers clarity, protects investors, and lays the foundation for a more secure and transparent digital asset market.
If you’re exploring crypto or comparing financial instruments, platforms like nairaCompare can help you evaluate rates, fees, and long-term investment options.
Always invest responsibly, choose licensed exchanges, and follow official SEC updates.
