Cryptocurrency in Nigeria: regulation, banks and taxes
In short. Nigeria holds one of the largest crypto user bases in the world and spent five years reversing its own position. The central bank cut banks off from the market in 2021, restored the connection in 2023, and since 2025 digital assets have counted as securities under the securities commission. Banks may serve licensed providers. A disposal meets a 10% charge on the gain.
- CAPITAL GAINS
- 10%on the gain from a disposal
- BANK ACCESS
- Allowedfor licensed providers since December 2023
- REGULATORS
- 3central bank, securities commission, revenue service
- FATF GREY LIST
- Exitedlate 2025
- LEGAL STATUS
- Securitiesunder the 2025 act
- CRYPTO AS PAYMENT
- Not legal tenderthe naira stays the only one
From a banking ban to a framework
In February 2021 the central bank told every bank, non-bank financial institution and payment provider to close the accounts of crypto exchanges and stop facilitating transactions. Holding coins stayed lawful. Nigerians kept buying through peer-to-peer channels, and the volume made Nigeria one of the largest crypto markets on the continent while the formal system looked away.
A new central bank governor reversed the circular on 22 December 2023, letting banks serve licensed virtual asset providers under fresh guidelines. The securities commission followed with an incubation programme and granted its first provisional approvals in August 2024.
The permanent answer came with the Investments and Securities Act 2025, which names digital assets as securities and puts them under the securities commission. Nigeria left the Financial Action Task Force grey list in late 2025, which reopened the country to institutional money that had been barred from it.
Who regulates what
A presidential order of 17 July 2026 settled the question of overlapping mandates without creating a fourth regulator. The central bank takes virtual assets used for payments, settlement, custody and wallets. The securities commission takes anything that behaves like a security. The revenue service takes the tax.
The order also obliges the central bank to run a regulatory sandbox, so a bank or a licensed fintech can build crypto on-ramps under supervision rather than outside it. Nigeria has also written the travel rule into its money-laundering law, which means a licensed provider passes sender and recipient details with each transfer.
Binance and the limits of the market
February 2024 showed what the unsettled period cost. Two Binance executives were detained in Abuja and the exchange shut every naira function it had. The episode is why the licensing question in Nigeria carries weight: a platform without local standing has little to fall back on.
What you pay
A disposal of digital assets meets a 10% charge on the gain, introduced through the finance legislation. The 2025 tax reform folds those profits into chargeable gains, which moves the ceiling for an individual. Check the figure with the revenue service before you file rather than assume the older rate still applies.
Allowed
- Own, buy and sell crypto
- Use a licensed provider that holds a bank account
- Run a crypto business once the securities commission licenses it
- Build on-ramps inside the central bank sandbox
Restricted
- Treat crypto as legal tender: the naira keeps that role alone
- Operate as a provider without registration
- Move funds through a licensed provider without travel-rule data
How the rules took shape
The central bank orders banks to close crypto exchange accounts and stop facilitating transactions. Holding coins stays lawful.
A new governor reverses the circular: banks may serve licensed virtual asset providers.
Two Binance executives are detained in Abuja and the exchange drops its naira functions.
The securities commission grants its first provisional approvals under an incubation programme.
The Investments and Securities Act names digital assets as securities and puts them under the commission.
Nigeria leaves the FATF grey list.
A presidential order splits oversight between the central bank, the securities commission and the revenue service.
Common questions
Is crypto legal in Nigeria?
Yes. Owning, buying and selling are lawful, and since 2025 digital assets count as securities under the securities commission. Crypto is not legal tender and the naira keeps that role.
Can my bank handle crypto money?
Since December 2023 banks may serve licensed virtual asset providers. The 2021 circular that closed those accounts no longer stands.
Who regulates what?
The central bank covers payments, settlement, custody and wallets. The securities commission covers anything behaving like a security. The revenue service handles tax. A presidential order of July 2026 drew those lines.
How much tax do I pay?
A disposal meets a 10% charge on the gain. The 2025 reform moves those profits into chargeable gains, so confirm the current rate with the revenue service before filing.
What happened with Binance?
Two executives were detained in Abuja in February 2024 and the exchange removed its naira functions. The case sits behind the push to license platforms locally.
Sources
Other countries
Updated 19.10.2026 · this is reference material, not investment or tax advice