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How to Legally Use Crypto in Nigeria After the 2025 Regulatory Changes

How to Legally Use Crypto in Nigeria After the 2025 Regulatory Changes

Michael James 2 December 2025 21 Comments

Crypto Tax Calculator for Nigeria (2026)

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Nigeria's new tax laws effective January 1, 2026 require you to pay tax on cryptocurrency profits. This calculator helps you estimate your tax based on your trading activity.

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Back in 2021, if you owned Bitcoin in Nigeria, your bank could freeze your account. Crypto exchanges were blocked. People relied on peer-to-peer trades, cash deposits, and risky workarounds just to buy or sell digital assets. But that chapter is over. As of March 25, 2025, Nigeria doesn’t want you to avoid crypto restrictions - it wants you to use crypto legally.

The old restrictions are gone - here’s what replaced them

The Central Bank of Nigeria (CBN) didn’t just soften its stance. It completely reversed course. The ban on banks dealing with crypto businesses was lifted in late 2023. Then, in March 2025, President Tinubu signed the Investments and Securities Act (ISA) 2025 into law. This wasn’t a tweak. It was a full rewrite of how digital assets are treated in Nigeria.

Now, crypto isn’t illegal. It’s a financial security. That means it’s regulated - not banned. The Securities and Exchange Commission (SEC) is now in charge. If you’re running a crypto exchange, trading platform, or wallet service, you need a license. Quidax and Busha got the first approvals. More are coming. But here’s the key: if you’re just buying, selling, or holding crypto as an individual, you don’t need a license. You just need to know the rules.

You don’t need to bypass the system - you just need to use the right tools

Many people still think they need to use VPNs, offshore exchanges, or anonymous wallets to avoid restrictions. That’s outdated thinking. The only thing you need to avoid now is unlicensed platforms. If you use a licensed exchange, you’re not breaking any rules. You’re following them.

Licensed exchanges like Quidax, Busha, and others now offer direct bank transfers. You can deposit Naira, buy Bitcoin or Ethereum, and withdraw profits - all through your Nigerian bank account. No more risky P2P deals with strangers. No more cash drops. No more fear of account freezes. The system is built for you now.

Here’s how to do it right:

Choose an SEC-licensed exchange. Check the SEC’s official website for the current list - it’s updated monthly.
Complete full KYC (Know Your Customer) verification. This means uploading your ID, proof of address, and sometimes a selfie. It takes 1-3 days.
Link your Nigerian bank account. Licensed platforms work with major banks like GTBank, Zenith, and Access Bank.
Trade only on the platform. Don’t send crypto to unverified wallets or unknown addresses.
Keep records of all transactions. You’ll need them for taxes.

What about privacy? Isn’t crypto supposed to be anonymous?

Yes, Bitcoin was designed to be pseudonymous. But in Nigeria, you’re not using crypto in a vacuum. You’re using it within a national financial system. That means identity verification is part of the deal - just like opening a bank account or applying for a loan.

If you’re worried about privacy, understand this: the system isn’t spying on you. It’s protecting you. The old unregulated market was full of scams. People lost life savings to fake exchanges and rug pulls. The new system gives you legal recourse. If a licensed platform goes rogue, you can file a complaint with the SEC. You can get your money back.

You still have control. You can hold your crypto in a hardware wallet like Ledger or Trezor. You can send it to any address you want. The only thing you can’t do is trade on an unlicensed platform and expect protection.

The new tax rules - what you need to know before 2026

Starting January 1, 2026, crypto profits are taxable. But it’s not as scary as it sounds. The Nigerian Tax Administration Act 2025 says you only pay tax when you sell or trade crypto for profit. Holding Bitcoin for years? No tax. Selling it for Naira? Tax applies.

Here’s how it breaks down:

Individuals: Pay personal income tax on crypto profits - up to 25%, depending on your total income.
Businesses: Pay 20%-30% corporate tax on crypto earnings, plus 7.5% VAT on transaction fees.
No tax on buying crypto with Naira or transferring between your own wallets.

You don’t need to hire an accountant. But you do need to track your trades. Use free tools like Koinly or CoinTracker. They sync with Nigerian exchanges and generate tax reports. The SEC and FIRS (Federal Inland Revenue Service) will be watching. Don’t wait until December 2025 to start recording.

Young Nigerians using crypto debit cards to buy coffee in a vibrant, colorful marketplace.

What happens if you use an unlicensed exchange?

You won’t get arrested. But you’ll be on your own. Unlicensed platforms have no legal obligation to protect you. If they disappear, you lose your money. No recourse. No refund. No SEC intervention.

The government is already cracking down. In August 2025, the EFCC shut down three unlicensed crypto platforms operating under fake names. Hundreds of users lost funds. Those who used licensed exchanges had no issues.

If you’re using an exchange that doesn’t show an SEC license number on its website, it’s not safe. Period.

Why this matters for everyday Nigerians

Nigeria has one of the highest crypto adoption rates in the world. Over 30% of adults have used crypto. Why? Because the Naira has lost value. Banks are slow. International payments are hard. Crypto isn’t a trend - it’s a tool for survival.

Now, with legal access, you can:

Send money to family abroad faster and cheaper than Western Union.
Invest in global assets without needing a foreign bank account.
Save in Bitcoin or stablecoins to protect savings from inflation.
Start a side business selling digital services and getting paid in crypto.

The government isn’t trying to stop you. It’s trying to give you a safe path to use crypto without risk.

What’s next? DeFi, NFTs, and stablecoins

The ISA 2025 law covers exchanges and investment tokens. But it doesn’t yet fully define DeFi protocols, NFTs used for art, or stablecoins like USDT. That’s coming. The SEC has said it will expand oversight in 2026.

For now, artistic NFTs (like digital art or collectibles) are fine. Investment NFTs (those promising returns) are regulated. Stablecoins are in a gray area - use them cautiously. Stick to well-known ones like USDT or USDC on licensed platforms.

DeFi lending or yield farming? Not officially regulated yet. Proceed with extreme caution. Don’t put life savings into a protocol with no legal backing.

A teen holding a hardware wallet as transaction records turn into birds flying toward a sunrise.

Final checklist: Are you doing crypto right in Nigeria?

If you’re still worried about restrictions, use this simple checklist:

✅ I use only SEC-licensed exchanges (Quidax, Busha, etc.)
✅ I completed full KYC verification
✅ I link my Nigerian bank account directly
✅ I keep records of all buys, sells, and trades
✅ I don’t use unlicensed platforms or anonymous wallets for trading
✅ I’m preparing for 2026 taxes by tracking profits

If you check all these boxes, you’re not avoiding restrictions. You’re using Nigeria’s new crypto system exactly as it was designed.

What if I still want to use an offshore exchange?

You can. But you lose everything the system now offers: bank integration, legal protection, dispute resolution, and tax compliance. Offshore exchanges don’t report to Nigerian authorities. If something goes wrong, you have no one to call. And if the government decides to tighten rules further - which it might - offshore platforms could be blocked at the gateway level.

Stick with the local, licensed options. They’re faster, safer, and fully legal.

Can I still use P2P platforms like LocalBitcoins in Nigeria?

Yes, but with major risks. P2P trading is not illegal, but it’s not protected. You’re dealing directly with individuals, not regulated companies. There’s no recourse if someone scams you, doesn’t deliver crypto, or reports you falsely to the bank. Licensed exchanges offer built-in escrow, dispute resolution, and customer support. P2P is riskier and slower. Only use it if you fully understand the risks and never send money before receiving crypto.

Will my bank freeze my account if I trade crypto?

No - not if you use a licensed exchange. The CBN lifted its ban in 2023. Banks are now allowed to work with SEC-approved crypto businesses. If your bank freezes your account, it’s likely due to an error or outdated policy. Contact your bank and show them the SEC’s official licensing list. Most banks now have crypto-friendly support teams.

Do I need to pay tax on every crypto trade?

No. You only pay tax when you sell crypto for profit - for example, if you bought Bitcoin for ₦500,000 and sold it for ₦800,000, you pay tax on the ₦300,000 gain. Trading one crypto for another (like BTC to ETH) is also a taxable event. But buying with Naira, holding, or transferring between your own wallets is not taxed.

Can I use crypto to pay for goods and services in Nigeria?

Yes, but it’s still limited. A growing number of online stores, freelancers, and service providers accept crypto. Major retailers like Jumia and Konga don’t accept it yet, but smaller businesses and tech startups do. You can also use crypto debit cards linked to your exchange wallet to spend at any merchant that accepts Mastercard or Visa.

Is it safe to store crypto on a licensed exchange long-term?

It’s safe for short-term trading, but not ideal for long-term holding. Licensed exchanges follow strict security protocols, but they’re still online wallets. For large amounts, move your crypto to a personal hardware wallet like Ledger or Trezor. You keep the private keys. The exchange handles trading. Your wallet handles storage. That’s the safest combo.

Next steps: What to do right now

If you’ve been holding back because of fear of restrictions, here’s what to do today:

Go to the SEC Nigeria website and download the list of licensed VASPs.
Sign up on one of the top three - Quidax, Busha, or Binance Nigeria (if licensed locally).
Complete KYC - have your ID and utility bill ready.
Link your bank account and make your first deposit.
Buy a small amount of Bitcoin or USDT to test the system.
Download a free crypto tax tracker and start logging your trades.

The era of hiding from crypto is over. Nigeria built a system that works. Now it’s your turn to use it - legally, safely, and smartly.