Are Crypto Payments Allowed in Nigeria? 2026 Rules, Licensing, and Tax Guide

Jan, 17 2026

Can you actually use Bitcoin or Ethereum to pay for goods in Nigeria? The answer isn’t simple - but it’s no longer a gray zone. As of 2026, crypto payments are allowed in Nigeria - but only if they follow strict rules set by the government. This isn’t the wild west of crypto anymore. It’s a regulated market with clear winners, losers, and consequences for breaking the law.

Yes, Crypto Payments Are Legal - But Only Through Licensed Providers

Nigeria doesn’t treat Bitcoin or Dogecoin like the naira. You can’t use them to pay your electricity bill or buy a government bond. But you can use them to pay a freelancer, buy imported goods from a local store that accepts crypto, or send money to family abroad - as long as the platform handling the transaction is licensed by the Securities and Exchange Commission (SEC).

The big shift happened in March 2025, when President Tinubu signed the Investments and Securities Act (ISA) 2025. For the first time, crypto assets were officially recognized as securities under Nigerian law. That means exchanges, payment processors, and wallet providers now need a license to operate. Unlicensed platforms? They’re illegal. And the SEC has already started shutting them down.

Platforms like Quidax and Busha got their licenses in late 2024. They’re now the only ones legally allowed to connect Nigerian bank accounts to crypto wallets. If you’re using a foreign exchange like Binance or Kraken without a Nigerian license, you’re operating in a legal gray area - and your funds could be frozen if regulators decide to act.

Who’s Watching? The Three Agencies That Control Crypto in Nigeria

It’s not just one agency in charge. Three powerful bodies now police crypto payments in Nigeria:

Securities and Exchange Commission (SEC): The main regulator. They license all crypto businesses, enforce rules, and can shut down non-compliant platforms. Fines start at ₦10 million ($6,693) for missing deadlines.
Central Bank of Nigeria (CBN): They control banks. Since December 2023, they’ve allowed banks to work with SEC-licensed crypto firms. That means you can now deposit naira into a licensed exchange and withdraw crypto - legally.
Nigerian Financial Intelligence Unit (NFIU): They track money laundering. Every crypto transaction over ₦500,000 must be reported. Suspicious activity? They can request your phone records and bank history.

This multi-agency system is new. Before 2025, no one knew who to call. Now, if a crypto platform is shady, the SEC can revoke its license, the CBN can cut off its bank access, and the NFIU can investigate its users. It’s a powerful combo - and it’s working.

How Crypto Payments Work Today - Step by Step

Here’s how a real Nigerian user makes a crypto payment in 2026:

You find a local business that accepts crypto - maybe a tech startup or an import-export firm.
You open an account on a licensed exchange like Quidax or Busha.
You deposit naira via bank transfer (this is now legal because the CBN allows it).
You buy Bitcoin or USDT on the exchange.
You send the crypto to the merchant’s wallet address.
The merchant converts the crypto to naira through their own licensed provider and gets paid in local currency.

No one is holding physical crypto coins. It’s all digital, tracked, and reported. The system is designed so that every step leaves a paper trail - for regulators, not just users.

Three Nigerian regulatory agencies as guardian figures banish illegal crypto operators from a digital ledger.

Taxes on Crypto Payments Changed on January 1, 2026

Before 2026, most Nigerians didn’t pay tax on crypto. Now, you absolutely must.

The Nigerian Tax Administration Act (NTAA) 2025 came into force on January 1, 2026. Here’s what it means:

You don’t pay tax when you buy crypto - only when you sell or trade it for profit.
Individuals: Profits are taxed as income, up to 25% depending on your total earnings.
Businesses: If your company makes over ₦25 million in crypto profits a year, you pay 20% corporate tax. Over ₦100 million? That jumps to 30%.
Transaction fees: Any platform charging fees (like Quidax) must charge 7.5% VAT on those fees.

This isn’t a punishment - it’s clarity. Many crypto users were scared of being taxed retroactively. The law says: no back taxes. Just pay going forward. Experts call it one of the fairest crypto tax systems in Africa.

What’s Still Banned? Fraud, Scams, and Unlicensed Platforms

Just because crypto is legal doesn’t mean everything goes. The law explicitly bans:

Ponzi schemes disguised as “crypto investment clubs”
Unlicensed exchanges that take deposits but don’t report transactions
Platforms that allow anonymous trading without KYC (Know Your Customer) checks

The Economic and Financial Crimes Commission (EFCC) has already raided several offices in Lagos and Abuja since late 2025. They’ve seized servers, frozen accounts, and arrested operators. One group was running a fake “Bitcoin mining farm” that collected ₦2 billion from over 12,000 people. All gone. All arrested.

If you’re using a platform that doesn’t show a license number on its website, you’re at risk. The SEC publishes a list of approved VASPs (Virtual Asset Service Providers) online. Always check it before depositing money.

Why Nigeria Leads the World in Crypto P2P Trading

Despite the rules, Nigeria still leads the world in peer-to-peer (P2P) crypto volume. Between July 2024 and June 2025, Nigerians moved over $92 billion in crypto. That’s more than South Africa, Kenya, and Ghana combined.

Why? Three reasons:

High inflation: The naira lost 40% of its value against the dollar between 2023 and 2025. People turned to crypto to save money.
Remittances: Nigerians abroad send home $20 billion a year. Crypto cuts fees from 10% to under 2%.
Tech-savvy youth: Over 60% of Nigerians under 35 use smartphones daily. Crypto apps are easy to install and use.

The new rules haven’t killed demand - they’ve just cleaned it up. Legit platforms are growing. Scammers are being pushed out.

A young man uses a crypto debit card to buy goods, with tax calculation and SEC license list floating nearby.

What Happens If You Use an Unlicensed Exchange?

You might not get caught right away. But if you do, the consequences are serious:

Your bank account can be frozen for “suspicious activity”
You can’t withdraw funds if the platform gets shut down
You lose legal protection - no recourse if you’re scammed
You risk being investigated by NFIU or EFCC if your transactions are large

There’s no jail time for simply holding crypto. But if you’re running an unlicensed platform or helping others evade taxes? That’s a criminal offense.

The Future: More Clarity, More Control

The Nigerian government isn’t trying to kill crypto. They’re trying to own it. By bringing it into the legal system, they gain tax revenue, reduce fraud, and give young entrepreneurs a real path to build businesses.

Expect more changes in 2026:

More exchanges will get licensed - possibly over 20 by year-end
More banks will offer crypto-linked debit cards
Government agencies may start accepting crypto for certain fees (like visa applications or business registrations)

The message is clear: If you play by the rules, you can thrive. If you don’t, you’ll be out - and possibly in trouble.

Is it legal to use Bitcoin to pay for goods in Nigeria?

Yes, but only if the payment goes through a platform licensed by Nigeria’s Securities and Exchange Commission (SEC). You can’t use Bitcoin directly like cash - it must be processed through a regulated exchange or payment provider. Unlicensed platforms are illegal.

Can Nigerian banks handle crypto transactions?

Yes - but only for SEC-licensed crypto businesses. Since December 2023, the Central Bank of Nigeria reversed its ban and now allows banks to open accounts for approved exchanges like Quidax and Busha. You can deposit naira and withdraw crypto legally through these channels.

Do I have to pay tax on crypto profits in Nigeria?

Yes, since January 1, 2026. Crypto is treated as property. You pay income tax on profits when you sell or trade it. Individuals pay up to 25%, companies pay 20-30%, and platforms charge 7.5% VAT on fees. No tax is due just for holding crypto.

What happens if I use Binance or Kraken in Nigeria?

You can still use them, but they’re not licensed in Nigeria. That means your funds aren’t protected by local law, your bank may freeze transactions, and regulators could block access at any time. For safety and legal protection, use only SEC-licensed platforms like Quidax or Busha.

Are NFTs legal in Nigeria?

Artistic NFTs (like digital art or collectibles) are not regulated by the SEC. But NFTs sold as investment contracts - such as fractional property or profit-sharing tokens - are treated as securities and require SEC approval. Most creators are safe, but sellers offering returns on NFTs need a license.

Can I start a crypto payment business in Nigeria?

Yes, but you need an SEC license as a Virtual Asset Service Provider (VASP). The process includes submitting financial records, KYC systems, AML compliance plans, and paying fees. The SEC has approved only a few so far, and the vetting is strict. It’s expensive and time-consuming - but legal.

Bottom Line: Crypto Is Legal - But Only If You Play by the Rules

Nigeria didn’t ban crypto. It brought it into the light. The days of anonymous, unregulated trading are over. But for those who follow the rules - use licensed platforms, pay taxes, and avoid scams - crypto is now a powerful, legal tool for saving, trading, and building wealth.

The system isn’t perfect. Licensing is slow. Some users miss the old freedom. But the trade-off is real: safety, accountability, and a future where crypto isn’t a gamble - it’s a financial service, just like banks or mobile money.

If you’re using crypto in Nigeria in 2026, don’t guess. Check the SEC’s licensed provider list. Pay your taxes. And never send money to a platform that won’t show you its license number. That’s how you stay safe - and stay legal.