Nigerian crypto laws: What’s allowed, banned, and how it affects traders

When it comes to Nigerian crypto laws, the rules governing cryptocurrency use, trading, and taxation in Nigeria. Also known as Nigeria’s digital asset regulations, these rules have changed dramatically since 2021—from a near-total ban to a complex mix of restrictions, warnings, and unofficial acceptance. The Central Bank of Nigeria (CBN) banned banks from handling crypto transactions in 2021, but that didn’t stop millions of Nigerians from using crypto anyway. Today, crypto is everywhere: from peer-to-peer trading on Paxful to remittances sent via Binance P2P. The government hasn’t legalized it, but it also hasn’t shut it down. Instead, it’s trying to control it.

That’s where the Securities and Exchange Commission (SEC) Nigeria, the federal agency responsible for regulating investment activities and securities markets. Also known as Nigeria’s financial markets watchdog, it now requires crypto exchanges operating in Nigeria to register as Digital Asset Service Providers (DASPs). This means platforms like Binance, Luno, and local exchanges must prove they know who their users are, report suspicious activity, and keep money safe. If they don’t, they get shut down. Meanwhile, the Federal Inland Revenue Service (FIRS), Nigeria’s tax authority that now treats cryptocurrency as a taxable asset. Also known as Nigeria’s crypto tax collector, it says you owe capital gains tax if you sell crypto for profit. That’s right—buying Bitcoin and selling it later for naira? You’re supposed to report it. Most people don’t. But the FIRS is building tools to track wallet addresses and exchange data.

So what does this mean for you? If you’re trading crypto in Nigeria, you’re in a gray zone. The CBN still tells banks not to touch crypto. But the SEC says exchanges can operate if they register. And the tax office wants a cut. You can still buy crypto with P2P platforms, use it to send money abroad, or even earn from staking—but you’re doing it without official protection. If a platform gets shut down or your wallet gets hacked, there’s no government safety net. And if you’re a business accepting crypto? You’re on your own when it comes to accounting and compliance.

There’s no clear path forward yet. Some lawmakers want to ban crypto entirely. Others say it’s too important for the economy to ignore. Meanwhile, Nigerians keep trading—because the naira keeps losing value, and crypto offers a way out. The posts below dig into how these laws actually play out: what exchanges are still running, how people avoid CBN blocks, what happens when the tax man comes knocking, and which crypto projects are getting squeezed by regulation. You’ll find real stories from traders, breakdowns of recent enforcement actions, and tips to stay on the right side of the law—even when the law itself is still changing.