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Nigeria usually ranks among the top countries in terms of crypto adoption. The country that instructed banks and other financial institutions to avoid using, holding, or transacting virtual assets in 2017 has now built a regulatory framework to consider crypto as securities in 2025. Individuals can now use crypto as money to buy goods and services while complying with the Nigerian rules related to digital assets.
Table of contents
Crypto Regulations in Nigeria 2025
June 30, 2025 – Enforcement of SEC Regulations for VASP
- Virtual asset service providers are required to ensure that third-party providers comply with all the Securities and Exchange Commission (SEC) marketing regulations.
June 2025- Digital Asset Rules
- SEC released new digital asset rules for crypto asset services providers and platforms while gaining authority over them. While the authorization was granted to the SEC in March, the digital asset rules came into force in June 2025.
April 2025- SEC Delay in Licensing
- Despite regulating the licensing in March, the SEC delayed the licensing for virtual asset service providers (VASPs), citing the “additional due diligence.”
- SEC jurisdiction was laying the groundwork for a more structured crypto ecosystem in Nigeria, as Director General Emomotimi Agama outlined the importance of level 3 due diligence.
March 29, 2025- Investments and Securities Act (ISA) 2025
- President Bola Ahmed Tinubu officially signed the ISA 2025 law, classifying cryptocurrencies and other digital assets as securities.
- This move also reaffirms the authority of the Securities and Exchange Commission (SEC) as the apex regulator of the Nigerian capital market.
- Virtual Asset Services Providers (VASPs), Digital Asset operators (DOPs), and Digital Asset Exchanges (DAEs) are now required to register and obtain authorization from the SEC.
What the Nigerian Government is Saying About Crypto?
While ISA 2025 officially recognizes digital assets and cryptocurrencies as securities, replacing the 2007 law, bringing them under the Nigerian SEC, national banks still retain the ability to disagree and restrict transactions.
By aligning the cryptocurrency framework with the SEC, Nigeria is aiming at:
- Innovation with Security: Nigeria is accelerating its innovation with fintech laws and crypto regulations, and NFTs, while also maintaining the protection measures for investors. Nigeria also focuses on talent development and blockchain development to increase innovation in the nation.
- Alignment with Global Standards: With the Companies and Allied Matters Act (2020), Nigeria is actively working to retain credibility in international markets.
- With new crypto and fintech laws, Nigeria is encouraging the use, adoption, and integration of blockchain technology across various sectors to enhance economic prosperity, efficiency, innovation, transparency, security, and trust.
Crypto License in Nigeria 2025
Under Section 357 of ISA 2025, virtual assets now fall under the legal definitions of securities, making them mandatory for a license while complying with anti-money laundering (AML) and know your customer (KYC) obligations. All VASPs targeting Nigerian users, whether foreign or local, must apply for an SEC license. This includes:
- Exchanges
- Wallet
- DeFi Front ends
- Token platforms
- Custodians
| Stakeholders | Changes in 2025 | Immediate action |
| Retail Users | Mandatory KYC, possible delisting of high-risk tokens | Reverify identity, read new terms |
| Developers/ DeFi Teams | Must avoid “investment contract” classification without a license | Review the token’s legal status |
| Businesses accepting crypto | Must use SEC-licensed payment partners and issue proper receipts | Choose a licensed PSP and update invoicing |
| Foreign Exchanges | Must apply for the Nigerian VASP license or appoint a local representative | Hire a compliance team and legal counsel |
Crypto tax in Nigeria 2025
Is crypto taxable in Nigeria? Yes, crypto is subject to tax in Nigeria since it is considered securities under the new ISA law.
- Taxable Events: Selling, trading, spending crypto, receiving crypto as payments, mining, staking, masternodes, airdrops, and hard forks.
- Penalty: Non-compliance leads to penalties; to avoid such situations:
- Individuals must stay updated on developments from the FIRS and the SEC
- Maintain accurate records of crypto transactions
- If necessary, individuals must seek professional advice for crypto tax
| Tax Type | Tax Rate | Application |
| Capital Gains Tax (CGT) | 10% (proposed 0.5–1% on all profits) | Selling and swapping of crypto |
| Income Tax | 7%–24% (individuals), 30% (companies) | Mining, staking, airdrops, and other crypto-related income |
| VAT | 7.5% (on platform fees only) | Fees charged by crypto exchanges |
Crypto Adoption in Nigeria 2025
- Crypto Adoption Rate: Nigeria is one of the top countries in terms of crypto adoption, with nearly one-third of Nigerians using crypto, marking 32% of the total population. The penetration rate projected for 2025 is 11.66% and is expected to reach 11.83% by 2026.
- Crypto Revenue: Current crypto revenue in Nigeria is expected to reach US$2.4 billion and is expected to show an annual growth of 3.46% resulting in a projected revenue of US$2.5 billion by 2026.
- Government’s Crypto Holdings: Not publicly known; policies rather focus on emerging technologies.
Conclusion
Nigeria has taken a big leap in the digital assets domain, shifting from not allowing crypto to recognizing crypto as securities. Currently, the government is aiming to increase the adoption and user rate of cryptocurrency. If the stability of innovation and security is continued in the nation, Nigeria will soon accelerate its economic power.
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FAQs
Yes, cryptocurrencies are legal and classified as securities under Nigeria’s ISA 2025 law, regulated by the SEC.
Yes, crypto is taxable through capital gains, income tax, and VAT depending on transaction type and platform fees.
About 32% of Nigerians use crypto, with a projected 11.66% penetration rate in 2025 and steady annual growth.
Yes, Nigeria now supports crypto under SEC oversight, aiming for secure innovation and widespread blockchain adoption.
