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

Nigeria used to be a wild west for cryptocurrency. Banks blocked transactions. Accounts got frozen. People traded peer-to-peer just to buy Bitcoin. But that changed in 2025. Today, crypto isn’t just tolerated in Nigeria - it’s regulated.

What Changed in 2025?

The big shift came when President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025. For the first time, digital assets like Bitcoin, Ethereum, and tokenized NFTs were officially recognized as securities under Nigerian law. That meant the Securities and Exchange Commission (SEC) became the main boss of crypto in the country.

Before this, the Central Bank of Nigeria (CBN) had banned banks from dealing with crypto businesses back in 2021. But that ban didn’t stop people. In fact, Nigeria became one of the top five crypto markets in the world. Between July 2024 and June 2025, over $92 billion in crypto value flowed into Nigeria - more than double what South Africa saw. The government realized they couldn’t ignore it anymore. So they built rules instead of trying to shut it down.

Who Runs Crypto Now?

It’s not just one agency. Nigeria created a team effort:

• SEC handles everything related to trading platforms, token sales, and investment products - including NFTs if they’re sold as investments.
• CBN oversees crypto payments, bank accounts for crypto firms, and how money moves in and out of the system.
• EFCC and NFIU track money laundering and fraud. They can even request telecom data to trace suspicious crypto activity.

This multi-agency setup is unusual. Most countries put crypto under one regulator. Nigeria split it because crypto touches both finance and security. It’s complex, but it means fewer loopholes.

What Do Crypto Businesses Have to Do?

If you want to run a crypto exchange or wallet service in Nigeria, you can’t just set up a website. You need a license from the SEC. Here’s what it takes:

• Minimum paid-up capital of ₦500 million ($335,000)
• A physical office in Nigeria with local management
• Nigerian corporate registration
• A fidelity bond (insurance against employee fraud)
• Compliance with AML/KYC rules under the amended National Anti-Money Laundering Act

The SEC started giving out provisional licenses in late 2024. Only two platforms got them first: Quidax and Busha. Dozens more are waiting. The vetting process is slow - regulators are checking every detail. That’s good for safety, but frustrating for startups.

What About Regular Users?

If you’re just buying Bitcoin to hold or trading on P2P apps like Paxful or LocalBitcoins, you’re not directly regulated. You don’t need a license. But you’re still affected by the rules.

Banks can now open accounts for licensed crypto firms. That means easier deposits and withdrawals. No more begging friends to send money via WhatsApp to bypass bank blocks.

But there’s a catch. The new laws give regulators more power to monitor activity. If you’re trading large amounts, your transactions could be flagged. The SEC can request data from telecom providers to trace suspicious behavior. That’s a big change from the old days of anonymity.

Some users worry this could hurt peer-to-peer trading. Others say it’s worth it for legal protection. After years of accounts being frozen without warning, having clear rules feels like progress.

What About Taxes?

In June 2025, Nigeria passed the National Tax Administration Act (NTAA) 2025. It takes effect in 2026. Now, crypto profits are taxable. If you sell Bitcoin for a gain, you owe tax. If you earn crypto from staking or mining, that’s income.

VASPs - like exchanges and wallet providers - must report user transactions to the tax authority. If they don’t, they face fines: ₦10 million ($6,693) for the first month of non-compliance, plus ₦1 million ($669) every month after that. The SEC can shut them down.

This is a big deal. Nigeria is one of the first African countries to build a full tax framework for crypto. Kenya and South Africa already tax crypto, but Nigeria’s system ties enforcement directly to licensing. That makes compliance harder - but also harder to ignore.

What’s Not Covered?

Not everything is regulated. Artistic NFTs - like digital art or collectibles sold purely for their value as items - are left alone. The law only steps in if they’re marketed as investments. So if you’re buying a digital painting, you’re fine. But if someone tells you it’ll give you dividends or profits, that’s a security. And that’s regulated.

Online forex trading platforms that use crypto are also under SEC watch. That’s new. Before, forex brokers could hide behind vague rules. Now, if they’re using crypto to offer leverage or trading services, they need a license.

Is It Working?

The early signs are positive. Foreign investors are showing interest. Fintech startups are applying for licenses. Job creation in compliance, legal, and tech roles is picking up. The government calls it a “strategic calibration” - not control, but structure.

But it’s not perfect. The licensing process is slow. Small businesses struggle with the capital requirements. Some fear the rules will push activity underground again - especially if enforcement gets too heavy.

Still, compared to where Nigeria was in 2021, it’s a huge leap. People aren’t just using crypto anymore. They’re using it legally. And that matters.

What’s Next?

More licenses will be approved in 2026. The SEC is expected to finalize rules for decentralized finance (DeFi) platforms. There’s also talk of integrating Nigeria’s crypto system with regional African initiatives, like the African Continental Free Trade Area’s digital payment goals.

The real test? Will this system help the unbanked? Over 30% of Nigerian adults still don’t have a bank account. Crypto gave them access to global finance. Now, with regulation, that access is safer and more stable. If the system works right, it could become a model for other developing economies.

For now, the message is clear: crypto isn’t banned in Nigeria. It’s not a gray area anymore. It’s a business - and it has rules.