Are Crypto Payments Allowed in Nigeria? Here’s What’s Legal in 2025

Can you actually use Bitcoin or Ethereum to pay for goods in Nigeria? The answer isn’t simple, but it’s clear: crypto payments are allowed-but only under strict rules that changed dramatically in 2025.

It’s Not Illegal, But It’s Not Legal Tender Either

Nigeria doesn’t ban crypto. You won’t get arrested for sending Bitcoin to a friend or buying groceries with USDT. But here’s the catch: crypto isn’t money in the eyes of the government. The Nigerian naira is the only official currency. That means you can’t pay your taxes, utility bills, or government fees with Bitcoin. If you try, the agency will refuse it. But for private transactions-between individuals, businesses, or online stores? That’s where crypto thrives.

Nigeria has been the world’s top country for peer-to-peer (P2P) crypto trading since 2021. In the year ending June 2025, over $92 billion in crypto flowed into the country. People use it to send money home from abroad, protect savings from inflation, and trade on global markets. The demand never went away-even when banks were told to cut off crypto users in 2021.

The Big Change: ISA 2025 Made Crypto Legal as a Security

The game shifted in March 2025 when President Tinubu signed the Investments and Securities Act (ISA) 2025. This law didn’t make crypto money. Instead, it classified digital assets as securities-just like stocks or bonds. That’s a huge deal. It means crypto isn’t in a legal gray zone anymore. It’s now regulated, monitored, and taxed under clear rules.

The Securities and Exchange Commission (SEC) became the main boss for crypto. Now, every exchange, wallet provider, or payment processor that handles crypto in Nigeria must register with the SEC and get a license. Platforms like Quidax and Busha were among the first to get approved in late 2024. If you’re using a platform that hasn’t applied for a license, you’re taking a risk. The SEC can shut them down-and freeze user funds.

Banks Can Now Work With Crypto Companies (Finally)

Before 2025, Nigerian banks were forbidden from serving crypto businesses. That made it hard to deposit naira to buy crypto or cash out profits. In December 2023, the Central Bank of Nigeria (CBN) reversed that ban-but only for SEC-licensed firms. Now, if a crypto company has a valid license, banks can open accounts for them, process payments, and even offer crypto-linked debit cards.

This change made a real difference. Users can now link their bank accounts to licensed exchanges. You can buy crypto with your salary, sell it, and withdraw naira-all within one system. No more using P2P traders with cash meetups or risky escrow services. The system is becoming safer and more reliable.

Anti-Fraud Rules Are Tighter Than Ever

The government isn’t just allowing crypto-it’s cracking down on scams. The Nigerian Financial Intelligence Unit (NFIU) and the Economic and Financial Crimes Commission (EFCC) now have access to telecom records and transaction data from licensed platforms. If someone runs a fake crypto investment scheme-like a “double your Bitcoin in 7 days” Ponzi-they’re going to jail.

Penalties for non-compliance are steep. A crypto firm that doesn’t register with the SEC gets fined ₦10 million ($6,693) in the first month. Then ₦1 million ($669) every month after that. Licenses can be suspended or revoked. Many smaller platforms have shut down because they couldn’t afford the compliance costs. That’s good for users: fewer scams, more trustworthy services.

Crypto Is Taxable-But Only When You Profit

Starting January 1, 2026, the Nigerian Tax Administration Act (NTAA) 2025 kicks in. This law says crypto is property, not currency. That means you don’t pay tax just for holding it. You pay when you sell, trade, or exchange it for profit.

• If you’re an individual and you make ₦500,000 from selling Bitcoin, you pay personal income tax-up to 25% depending on your total earnings.
• If you run a business that accepts crypto as payment, you pay corporate tax: 20% if you earn between ₦25 million and ₦100 million a year, or 30% if you earn more.
• Any company charging fees for crypto transactions (like an exchange) must also charge 7.5% VAT on those fees.

Compared to countries like the U.S. or Germany, Nigeria’s crypto tax rules are surprisingly fair. You’re not taxed on every tiny trade. Only real profits count. The government isn’t trying to kill crypto-it’s trying to collect its share.

What This Means for Everyday Users

If you’re a regular Nigerian using crypto to send remittances, save money, or shop online, here’s what you need to do:

1. Only use SEC-licensed platforms like Quidax, Busha, or other approved exchanges.
2. Keep records of all your buys, sells, and trades. You’ll need them for taxes in 2026.
3. Avoid unregulated international platforms that don’t have a Nigerian license. They could disappear overnight.
4. Don’t fall for “guaranteed returns” or crypto influencers promising quick riches. Those are scams.

Many users still prefer P2P trading because it’s faster and doesn’t require KYC. But the risk is higher. If someone disappears after you send naira, there’s no recourse. Licensed platforms offer dispute resolution and insurance for user funds.

What’s Next? More Clarity, But Slower Growth

The licensing process is taking longer than expected. Regulators are being careful. They’re checking every applicant’s security systems, financial records, and anti-fraud controls. That’s good for long-term stability, but it’s slowing down innovation.

International exchanges like Binance or Kraken haven’t applied for Nigerian licenses yet. That means Nigerian users might lose access to some global features-like margin trading or staking rewards. But local platforms are catching up fast. Quidax now offers staking. Busha has integrated savings accounts with interest in crypto.

The real winners? Nigerian entrepreneurs building crypto tools for local needs: apps that let small businesses accept crypto payments without bank fees, wallets that auto-convert crypto to naira for daily spending, and educational platforms teaching people how to use crypto safely.

Bottom Line: Crypto Payments Are Legal-If You Play by the Rules

Nigeria didn’t ban crypto. It didn’t ignore it. It regulated it. And that’s a sign of maturity.

You can use crypto to pay for goods, send money, or invest. Just make sure you’re using a licensed platform. Keep your records. Pay your taxes when you profit. Avoid scams. The system is no longer wild west-it’s a real market with rules, oversight, and consequences.

For the first time, Nigeria’s crypto users have protection. The government has revenue. And the industry has a future. All it takes is playing by the new rules.