Are Crypto Payments Allowed in Nigeria? The 2026 Legal Reality

Back in 2021, the Central Bank of Nigeria shut down bank accounts tied to crypto exchanges. People thought that was the end. But it wasn’t. Nigerians kept trading - through P2P apps, cash deposits, and mobile wallets. By 2025, Nigeria led the world in peer-to-peer crypto volume, with over $92 billion flowing in just one year. So what’s the real story today? Are crypto payments allowed in Nigeria? The answer isn’t simple, but it’s clear: yes, they are - if you follow the rules.

It’s Not Illegal, But It’s Not Legal Tender

Cryptocurrency isn’t banned in Nigeria. You won’t go to jail for buying Bitcoin or sending Ethereum. But here’s the catch: crypto is not legal tender. That means you can’t use it to pay your taxes, buy government bonds, or settle official debts. The Nigerian naira still holds that status. Crypto operates in a parallel space - used for savings, remittances, trading, and business payments between private parties.

This distinction matters. If you run a small business and accept Bitcoin for your goods, that’s fine. If you try to pay your landlord in Dogecoin and they refuse because they need naira for rent, that’s also fine. The law doesn’t force anyone to accept crypto. It just doesn’t stop them either.

The Big Change: ISA 2025 and the SEC Takeover

The game changed in March 2025 when President Tinubu signed the Investments and Securities Act (ISA) 2025. This law didn’t legalize crypto - it classified it. Under ISA 2025, cryptocurrencies like Bitcoin, Ethereum, and Solana are now officially recognized as digital assets and treated as securities under Nigerian law.

That means the Securities and Exchange Commission (SEC) is now in charge. Not the Central Bank. Not the police. The SEC. And with that power came strict rules:

• All crypto exchanges and virtual asset service providers (VASPs) must register with the SEC.
• They must follow strict KYC (know your customer) and AML (anti-money laundering) rules.
• They’re subject to audits, reporting, and on-site inspections.
• Unlicensed platforms face fines of ₦10 million ($6,693) in the first month - plus ₦1 million ($669) every month after that.

Platforms like Quidax and Busha were among the first to get licensed in late 2024. Their apps now show SEC approval badges. Users can see their license numbers. That’s new. Before 2025, you had no way to tell if a platform was legit.

Banking Is Back - But Only for Licensed Players

In 2021, the Central Bank of Nigeria (CBN) told banks: “Don’t touch crypto.” That caused chaos. People couldn’t deposit or withdraw naira to buy Bitcoin. P2P trading exploded because of it.

Fast forward to December 2023. The CBN reversed course. It issued new guidelines allowing banks to serve SEC-licensed crypto businesses. Today, if you’re using Quidax or another licensed exchange, you can link your bank account. You can deposit naira, buy crypto, and withdraw profits - all through your regular bank.

But here’s the twist: if you’re using an unlicensed international exchange like Binance or Kraken, your Nigerian bank can still block your transactions. The rules only protect licensed players. So if you want smooth banking, you need to use a local, SEC-approved platform.

Taxes Are Now Official - Starting January 2026

For years, crypto users in Nigeria didn’t pay taxes on their gains. That’s over. The Nigerian Tax Administration Act (NTAA) 2025 took effect on January 1, 2026. Now, crypto is treated like property - not currency.

That means:

• Holding Bitcoin? No tax.
• Selling Bitcoin for profit? Taxable event.
• Exchanging Bitcoin for Ethereum? Taxable event.
• Using crypto to buy a laptop? Taxable event.

Here’s how it breaks down:

• Individuals: Profits taxed at personal income rates - up to 25%.
• Businesses: 20% corporate tax on profits between ₦25 million and ₦100 million. 30% if over ₦100 million.
• Transaction fees: All crypto platforms must charge 7.5% VAT on service fees they collect.

This isn’t meant to crush the market. Experts call it “progressive” - fairer than some EU countries and less burdensome than the U.S. But for many Nigerians who’ve never filed crypto taxes before, it’s a shock. The Federal Inland Revenue Service (FIRS) is now training auditors and setting up crypto reporting systems. Expect audits in 2026.

What’s Still Not Allowed

Just because crypto is legal doesn’t mean everything goes. The SEC and EFCC have cracked down hard on scams:

• Ponzi schemes disguised as “crypto investment clubs” are illegal - and getting shut down fast.
• Unlicensed forex trading platforms that claim to offer crypto-backed trading are being raided.
• Anonymous wallets with no KYC are blocked from interacting with licensed exchanges.

Regulators now have access to telecom records. If you’re running a fake crypto mining farm and collecting money from 5,000 people, they’ll find you. The tools are real. The enforcement is real.

Who Wins? Who Loses?

The new rules have created winners and losers.

Winners:

• Legit exchanges: Quidax, Busha, and others now have a legal edge. Customers trust them more. Banks work with them. They can grow.
• Remittance users: Nigerians abroad sending money home can now use licensed platforms with lower fees than Western Union.
• Investors: Clear rules mean less risk. You know who to trust.

Losers:

• Unlicensed platforms: International exchanges that won’t register with the SEC are losing access to Nigerian users. Many are pulling out.
• Scammers: The days of easy crypto fraud are over. The SEC and EFCC are working together - and they’re not joking.
• Users who hate paperwork: KYC, tax filings, and compliance add friction. Some users are frustrated.

Can You Actually Use Crypto to Pay for Things?

Yes - but only in specific ways.

You can pay for:

• Online services (hosting, SaaS tools, freelance work)
• Products from Nigerian e-commerce stores that accept crypto (some do)
• Remittances via licensed platforms
• Investments in tokenized assets (real estate, startups)

You can’t use it to:

• Pay your electricity bill
• Buy fuel at a gas station
• Settle a court fine
• Pay your landlord unless they agree to it

The ecosystem is growing. More businesses are adding crypto as a payment option - but slowly. The infrastructure is there. The trust is building. The legal framework is finally in place.

What’s Next?

The next 12 months will be critical. The SEC is still processing license applications. More platforms will get approved. Tax enforcement will ramp up. Banks will refine how they handle crypto deposits.

Experts predict Nigeria’s crypto market will stabilize by late 2026. The chaos of 2021-2024 is behind us. The era of “legal gray zone” is over. What’s left is a regulated, taxed, monitored - but very real - crypto economy.

For Nigerians, the message is simple: Use licensed platforms. Keep records. Pay your taxes. And don’t trust anyone promising 10x returns overnight.