Can Businesses in Nigeria Accept Crypto Legally in 2025?

Can a business in Nigeria legally accept Bitcoin, Ethereum, or USDT as payment? The short answer is: not directly - but there’s a legal workaround that’s changing how companies handle crypto payments.

In 2025, Nigeria’s crypto rules shifted dramatically. The Investments and Securities Act (ISA) 2025, signed into law in March, gave the Securities and Exchange Commission (SEC) full control over digital assets. But here’s the catch: crypto isn’t legal tender. Only the Naira is. That means you can’t walk into a Lagos shop, hand over 0.5 BTC for a phone, and expect it to be treated like cash.

Before 2025, things were even messier. In 2021, the Central Bank of Nigeria (CBN) banned banks from dealing with crypto exchanges. That forced businesses to rely on peer-to-peer (P2P) platforms. Many small vendors used Binance P2P or LocalBitcoins to convert crypto to Naira. But that was risky - no protections, no oversight, and constant fear of account freezes. By 2024, Nigeria was second in the world for crypto adoption, with over $1.2 billion in monthly P2P trades. Yet, less than 5% of businesses had a legal way to accept it.

What Changed in 2025?

The ISA 2025 didn’t ban crypto - it reclassified it. Digital assets are now treated as securities, not money. That means they fall under the same rules as stocks and bonds. For investors, this is good news. It brings transparency, protects against scams, and opens the door for institutional players. For merchants? It’s a wall.

The SEC made it clear in their April 2025 guidance: “Digital assets are recognized as securities and investment instruments, not as currency substitutes for everyday commercial transactions.” So if you’re a restaurant owner, a clothing store, or an online seller trying to take crypto as payment, you’re breaking the law - unless you’re licensed.

Who Can Legally Accept Crypto?

Only three types of entities are allowed to handle crypto legally under the new rules:

• Virtual Asset Service Providers (VASPs) - companies that custody, trade, or transfer crypto on behalf of others.
• Digital Asset Operators (DOPs) - firms that issue or manage tokenized assets.
• Digital Asset Exchanges (DAEs) - platforms where users buy and sell crypto.

To get licensed, you need at least ₦500 million ($350,000 USD) in capital. You must have 24/7 transaction monitoring, cold storage for 95% of assets, cybersecurity certified to ISO/IEC 27001, and a full AML/CFT system that reports to the Nigerian Financial Intelligence Unit (NFIU). The application process takes an average of 145 days. And 63% of first-time applicants get rejected - mostly for weak compliance plans.

As of September 2025, only 47 companies have been approved. Quidax, Bybit Nigeria, and Binance Nigeria dominate the market. These aren’t merchants - they’re intermediaries. Their job is to convert crypto to Naira for businesses that use them.

How Do Businesses Actually Accept Crypto Now?

If you’re a small business owner and want to accept crypto, here’s how it works in practice:

1. You sign up with an SEC-licensed VASP like Quidax or Bybit Nigeria.
2. You integrate their payment gateway into your website or POS system.
3. A customer pays you in USDT or BTC.
4. The VASP instantly converts it to Naira and deposits it into your bank account.
5. You never hold crypto. You only receive Naira.

This isn’t “accepting crypto.” It’s accepting Naira - with crypto as the middleman. You get the benefit of international customers paying you without forex delays, but you pay a fee. Most VASPs charge between 1.5% and 3.5% per transaction. Add in setup costs of ₦85 million to ₦200 million if you’re building your own system, and it’s clear why only 11% of Nigerian merchants who tried crypto before 2025 are still doing it now.

One Jumia vendor on Twitter/X summed it up: “Had to turn away international customers who wanted to pay in USDT. SEC rules say I must convert to Naira first through their approved channels, adding unnecessary steps and fees.”

Why Not Just Let Crypto Be Money?

The CBN and SEC argue that treating crypto as currency would destabilize the financial system. They point to inflation, capital flight, and the risk of unregulated money flowing into the economy. Dr. Olayemi Cardoso, CBN Governor, said in April 2025: “Our approach prioritizes financial stability and investor protection over convenience.”

But critics say that’s a missed opportunity. Dr. Ngozi Okonjo-Iweala, former Finance Minister, wrote in May 2025: “By not creating a separate payment vehicle category for cryptocurrency, Nigeria is stifling innovation that could address our 36% unbanked population and high remittance costs.”

With over $25 billion sent home by Nigerians abroad every year, crypto could cut remittance fees from 10% to under 2%. But right now, most remitters still use Western Union or MoneyGram because they’re legal. Crypto is faster and cheaper - but legally risky for businesses to use.

What’s Next? The 2026 Outlook

The SEC admitted in September 2025 that the current system isn’t working for merchants. They announced a six-month review of the merchant acceptance rules. Proposals under discussion include:

• A new “Digital Payment Vehicle” category with lower capital requirements - possibly ₦50 million instead of ₦500 million.
• Simplified compliance for small businesses using approved gateways.
• Exemptions for microtransactions under ₦50,000.

At the same time, the Central Bank launched its own digital currency, the eNaira, in October 2025. It’s already used by 1.2 million people in its first week. The eNaira is government-backed, fully traceable, and designed for everyday payments. Many experts believe it will replace the need for private crypto in retail transactions.

Still, the demand won’t disappear. With 60 million Nigerians owning crypto - nearly 30% of the adult population - the pressure to find a legal, simple way to use it for shopping, bills, and services is growing.

Real-World Examples

Here’s what’s actually happening on the ground:

• Lagos Trader 87 runs an e-commerce store. Before 2025, he accepted Bitcoin directly. Got a warning letter from the SEC in January 2025. Shut it down. Now he uses BitFinance (a licensed VASP). Pays 3.5% fee. Says his margins are cut in half.
• CryptoBankerNG runs a licensed VASP. Onboarded 12,000 merchants since April 2025. Says the system works - but only for businesses that can afford the ₦500 million cap.
• MTN and Airtel accept crypto for international settlements through SEC-approved channels - but not for buying airtime or data. Their customers still pay in Naira.
• Small tech startups in Abuja and Port Harcourt use Quidax gateways to receive payments from overseas clients. They don’t hold crypto. They get Naira in 10 minutes.

The pattern is clear: crypto is used for investment and cross-border payments - not for buying bread, clothes, or phone credit.

Bottom Line: What Should You Do?

If you’re a business owner in Nigeria and want to accept crypto:

• Don’t try to accept it directly. You’ll risk penalties or account freezes.
• Do partner with an SEC-licensed VASP like Quidax, Bybit Nigeria, or Binance Nigeria.
• Do understand that you’re not getting crypto - you’re getting Naira, with extra fees.
• Do keep records. Even if you use a VASP, you’re still subject to AML reporting.
• Don’t expect crypto to replace Naira anytime soon. It’s a bridge, not a replacement.

The future might change. Maybe by 2027, Nigeria will create a lighter framework for small merchants. Maybe the eNaira will make private crypto irrelevant for payments. But for now, the rules are strict: crypto is an investment - not a currency.

If you’re a small business, the only legal path is through a licensed intermediary. It’s not ideal. It’s not cheap. But it’s the only way to stay compliant and keep your bank account open.