Is Crypto Legal in Nigeria? 2025 Regulations and What They Mean for You

🇳🇬 Nigeria Finally Legalizes Cryptocurrency in 2025

The question "Is crypto legal in Nigeria?" finally has a clear answer in 2025. Yes, cryptocurrency is now legal in Nigeria, but it operates under strict regulations that every investor must understand. 

After years of uncertainty and a controversial banking ban, Nigeria has made a landmark decision.

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025 into law, officially recognizing digital assets as securities. This changes everything for Nigerian crypto investors. 

Quick Insight: Yes, crypto is now legal in Nigeria, but it is not legal tender — meaning you can trade and invest, but not use it for everyday payments.

Nigeria's Crypto Journey: From Ban to Recognition 

Nigeria’s crypto story has been a rollercoaster of bans, warnings, and policy reversals:

What Does Legal Recognition Mean? 

Under the ISA 2025, digital assets are officially recognized as securities. Here’s what that means for everyday investors:

• Crypto is NOT banned: Nigerians can legally own, trade, and invest in cryptocurrency. 
• Crypto is NOT legal tender: You cannot use Bitcoin or other cryptocurrencies for official payments instead of the Naira. 
• Strict regulatory oversight: All crypto platforms must comply with SEC regulations to operate legally. 

 This move provides clarity, security, and legitimacy — making it easier for both local and foreign investors to participate confidently.

Combine crypto with stable options — compare money market, fixed income, and dollar funds to balance your portfolio.

Who Regulates Crypto in Nigeria? 

Three key bodies oversee Nigeria's crypto landscape: 

1. Securities and Exchange Commission (SEC): 

• Regulates all Virtual Asset Service Providers (VASPs).

• Issues licenses and supervises compliance.

2. Central Bank of Nigeria (CBN): 

• Controls how banks interact with licensed crypto firms.

• Ensures monetary stability amid rising crypto adoption.

3. Nigerian Financial Intelligence Unit (NFIU):

• Oversees AML/CFT compliance, preventing illicit transactions. 

 Always confirm a platform’s SEC license status before trading. Check live platform data on nairaCompare.ng/crypto

Compliance Requirements for Crypto Users and Platforms: Tax Implications 

Crypto investors are now visible to the tax authorities. Here’s what’s new:

• Capital Gains Tax: Starting in 2026, profits from cryptocurrency are taxed at up to 25%.

• Reporting Obligations: Licensed exchanges must submit transaction reports to the SEC and FIRS.

• KYC Requirements: Users must verify their identities before trading.

• Penalties: Non-compliant exchanges risk losing their licenses or being blacklisted by the SEC.

  Tip: Keep transaction records and tax reports — they’ll be mandatory for crypto investors in 2026.

  
  

Before and After: How 2025 Changed Everything

What This Means for Nigerian Investors 

More Safety: The SEC now has the authority to crack down on Ponzi schemes, pump-and-dump tokens, and unregistered exchanges. 

Legal Clarity: No more confusion about whether crypto investment is allowed. 

Platform Accountability: Only SEC-licensed platforms can legally operate, reducing fraud risks. 

Banking Integration: Easier fund transfers through legitimate banking channels. 

Tax Obligations: You must report and pay taxes on crypto profits. 

How to Invest Safely in Crypto from Nigeria 

• Use SEC-licensed platforms only: Verify the platform's license status before investing. 
• Complete KYC verification: Provide accurate identity documentation. 
• Keep transaction records: Essential for tax reporting and compliance. 
• Stay informed: Regulations continue to evolve; follow official SEC announcements. 
• Diversify wisely: Consider other investment options like money market funds, dollar funds, or fixed deposits alongside crypto. 

FAQs About Crypto Legality in Nigeria 

Q: Can I get arrested for using cryptocurrency in Nigeria? 

No. Cryptocurrency use is legal. However, using unlicensed platforms or failing to comply with tax requirements could lead to penalties. 

Q: Do I need a license to buy crypto? 

No. Individual investors don't need licenses. Only platforms providing crypto services require SEC licensing. 

Q: How much crypto can I buy without reporting? 

Individual transactions under ₦5 million don't require reporting. Amounts above this threshold must be reported via goAML. 

Q: Are all crypto platforms now legal? 

No. Only SEC-licensed platforms can legally operate. The SEC maintains an "irregular operator alert" to inform the public about unlicensed crypto exchanges. 

Conclusion 

Nigeria's crypto landscape has transformed from uncertainty to regulated legitimacy. The ISA 2025 provides the clarity Nigerian investors have long needed while establishing safeguards against fraud and financial crime. 

If you're interested in exploring cryptocurrency alongside other investment options, check current crypto rates on nairaCompare and compare various financial products to build a balanced portfolio. 

Always invest responsibly, use licensed platforms, and stay updated with regulatory developments from the SEC.