Is Crypto Legal in Nigeria in 2025? What the Latest Laws Say

Cryptocurrency has been a major topic of discussion in Nigeria for years. Once mired in regulatory uncertainty, the legal status of crypto in Nigeria has evolved significantly and in 2025, it’s clearer than ever before.

So, the big question many crypto users and investors are asking is:

Is crypto legal in Nigeria right now?

Short Answer: Yes but with conditions.
Nigeria now legally recognizes cryptocurrencies and digital assets, but they’re regulated and subject to specific laws and requirements.

Let’s break it down.

1. The Turning Point: ISA 2025 Law

In March 2025, President Bola Ahmed Tinubu signed the Investments and Securities Act (ISA) 2025 into law, a landmark move that changed how crypto is treated in Nigeria according to TradingView

Under this law:

• Cryptocurrencies and virtual assets are legally recognized and classified as securities.
• They are no longer in a legal gray area.
• Crypto exchanges and platforms must register with the Nigerian Securities and Exchange Commission (SEC).

This means that crypto isn’t illegal but you must follow the rules if you’re operating or trading significant amounts.

2. What Does Classifying Crypto as “Securities” Mean?

Classifying crypto as a security doesn’t mean you can’t buy or hold it. Rather, it brings crypto under a structured regulatory framework similar to stocks or bonds.

Under this framework:

• Virtual Asset Service Providers (VASPs) — like crypto exchanges, wallets, and token issuance services must be licensed with the SEC. according to MEXC
• Crypto businesses must follow Know-Your-Customer (KYC) and anti-money laundering (AML) rules.
• Platforms trading crypto with Nigerian users must meet regulatory standards.

For users this means greater security, transparency, and investor protection, as the law aims to reduce fraud and protect the market. abujapress.com

3. Banks & Crypto: What You Should Know

Historically, the Central Bank of Nigeria (CBN) restricted banks from facilitating crypto transactions in 2021, which limited how exchanges could operate within the banking system. Pulse Nigeria

However, that policy has softened over time as regulators and the CBN began coordinating with the SEC and other agencies to create a safer framework. icirnigeria.org

This means that while banks can now work with SEC-licensed crypto service providers, they still can’t directly hold or trade crypto themselves.

4. Crypto Taxation in Nigeria

With cryptocurrencies classified as securities, Nigeria now treats crypto profits under existing tax regimes, including:

• Capital Gains Tax (CGT) on crypto profits
• Income Tax on staking, mining, or earnings in crypto
• VAT on fees charged by platforms

As a trader or investor, it’s important to keep records and stay compliant to avoid penalties.

5. Final Verdict: Is Trading Crypto Legal?

✅ Yes. Individuals can legally:

• Buy, sell, and trade crypto
• Hold it in wallets
• Use licensed exchanges
• Invest in digital assets

❌ No. Crypto is not legal tender, meaning it isn’t officially recognized as currency you must accept for payment and unlicensed exchanges shouldn’t be used for regulated activity.

Conclusion

As of December 2025, Nigeria’s position on crypto has matured. It is no longer ambiguous or outright banned crypto is legal and regulated under the Investments and Securities Act (ISA 2025).
This law brings digital assets into the mainstream financial ecosystem, placing them under SEC oversight, fostering trust, and encouraging responsible innovation.

If you’re trading, investing, or planning to operate in crypto in Nigeria, staying compliant and using licensed platforms is the key to legal and safe participation in this rapidly evolving market.