Nigerian Crypto Laws: What You Can and Can't Do in 2025

When it comes to Nigerian crypto laws, the legal framework governing cryptocurrency use, trading, and taxation in Nigeria, shaped by the Central Bank of Nigeria and federal regulators. Also known as Nigeria's digital asset rules, these laws have gone from outright bans to a tense, patchwork system that lets people trade but makes it hard to bank. Nigeria was one of the first countries in Africa to see mass crypto adoption — not because of government support, but because people needed an alternative to a shaky local currency and broken banking system.

Back in 2021, the Central Bank of Nigeria, the country's monetary authority that banned banks from processing crypto transactions. Also known as CBN, it ordered all financial institutions to cut off services to crypto exchanges and users. That didn’t stop trading — it just forced it underground. Today, Nigerians still buy and sell Bitcoin, USDT, and other coins through P2P platforms like Paxful and Binance P2P. But if you try to link your bank account to a crypto wallet, you risk having your account frozen. The CBN still doesn’t recognize crypto as legal tender, and it actively warns against using it for payments.

Then there’s the crypto taxes Nigeria, the 10% capital gains tax applied to profits from selling or trading cryptocurrency, enforced by the Federal Inland Revenue Service. Also known as Nigerian crypto tax, it was introduced in 2023 and applies whether you trade Bitcoin for Ethereum, sell crypto for naira, or use it to buy goods. The government doesn’t have a perfect tracking system, but they’re starting to demand tax returns from large traders. If you made over 1 million naira in crypto gains last year, you’re expected to declare it — and pay up.

What’s missing? Clear licensing rules for exchanges. Unlike Brazil or the UK, Nigeria doesn’t have a formal registration process for crypto platforms. That means anyone can set up a P2P marketplace, but there’s no oversight. If a platform vanishes with your money — and many have — there’s no government agency to turn to. The Securities and Exchange Commission (SEC) says it’s watching, but it hasn’t shut down a single unlicensed exchange yet.

And here’s the real tension: Nigerians use crypto to send remittances, protect savings, and pay for services — but the government sees it as a threat to financial control. You can still trade. You can still earn. But you can’t do it openly. Banks block transfers. ATMs won’t cash out crypto. And if you try to move large amounts through formal channels, you’ll get questioned.

What you’ll find in the posts below isn’t theory — it’s real cases. How people in Lagos are using USDT to pay rent. Why a Nigerian trader lost $40,000 to a fake exchange. How the CBN’s latest circular affects your wallet. And what changes might come if Nigeria finally decides to regulate, not just restrict, crypto.