Crypto Regulations in Nigeria 2025: What You Need to Know

Nigeria has moved from outright bans to bold, structured oversight of digital assets. The Central Bank of Nigeria (CBN) has loosened its 2021 banking ban, and the Securities and Exchange Commission (SEC) has issued detailed rules for virtual-asset service providers (VASPs). Most importantly, the Investments and Securities Act (ISA) 2025 now officially treats cryptocurrencies as mainstream securities.

Whether you’re a trader, developer, investor, or business owner, understanding the crypto regulations in Nigeria 2025 is no longer optional. It’s essential to navigate and succeed in West Africa’s largest crypto market.

A Quick Timeline of Crypto Regulations (2017 – 2025)

Understanding the evolution of Nigeria's crypto laws helps explain the structure in place today. Below is a simplified timeline:

Check the history of Nigeria’s crypto bans through each circular chronologically.

Key Pillars of Crypto Regulations in Nigeria 2025

The crypto regulations in Nigeria 2025 are structured around several core principles:

Legal Recognition of Crypto as Securities:

 Under Section 357 of ISA 2025, virtual assets now fall under the legal definition of "securities." This means that any token marketed or sold in Nigeria falls within SEC jurisdiction.

Mandatory SEC licensing for all VASPs: 

 All VASPs targeting Nigerian users whether local or foreign—must now apply for a full SEC license. This includes:

• Exchanges

• Wallets

• DeFi front-ends

• Token platforms

• Custodians

Exchanges, custodians, broker-dealers, wallet operators, ICO/STO platforms and even DeFi front-ends that “target” Nigeria must obtain a full VASP licence (₦500 million paid-up capital + 25 % fidelity bond).

Bank-account rules (CBN 2023 Update): 

The CBN now allows licensed VASPs to operate designated accounts—but with strict KYC/AML enforcement. However, banks themselves are still not allowed to trade or hold crypto.

Expanded consumer-protection toolkit: 

Full prospectus-style disclosures, audited reserves for custodians, segregation of client assets, and retail-investment caps on high-risk tokens.

SEC given powers to suspend listings and freeze wallets in suspected fraud cases.

10% Capital Gains Tax on Crypto

As per the Finance Act 2023, a 10% capital-gains tax now applies to all digital asset disposals above ₦10 million. Losses can be carried forward for 5 years.

How the New Rules Impact You

The Compliance Checklist for 2025

• Map your product to ISA 2025 definitions: security token, utility token, stablecoin or e-money.

• Apply for VASP licence (if exchange/custody/brokerage).

• Register each asset you list or issue with the SEC.

• Update AML/KYC stack to align with CBN & FATF Travel-Rule thresholds.

• Set up tax tracking for CGT and Withholding-Tax obligations.

• Draft consumer-protection disclosures in plain English plus Yoruba/Hausa/Igbo translations.

• File quarterly reports and annual audited statements to the SEC.

Enforcement Trends to Watch in 2025

• Exchange Crackdowns: Following the Binance case, the SEC and FIRS are coordinating to audit large exchanges for FX abuse and tax evasion.

• P2P Naira Delisting: The SEC may soon restrict NGN pairs on unlicensed P2P desks to curb speculative trading.

• DeFi Sandbox Programs: The ARIP program (Accelerated Regulatory Incubation Program) will reopen in mid-2025 for DeFi apps and STO pilots.

What Comes Next in Nigeria’s Crypto Space?

• Stablecoin Regulations (Q4 2025): New rules are expected for both naira-backed stablecoins and foreign ones like USDT/USDC.

• eNaira-VASP Integration: The eNaira CBDC may soon link to licensed VASPs, offering a smoother path between fiat and crypto.

• Regional Harmonization: Nigeria’s SEC is working with Ghana and Kenya to align rules under an ECOWAS crypto policy.

Practical Tips for Everyday Crypto Users

• Always verify licenses: Only use exchanges with visible SEC registration numbers.

• Track your gains: Use apps that generate Nigerian tax-ready reports.

• Stay on-chain but compliant: You can self-custody crypto, but move funds to a licensed platform before withdrawal.

•  Be cautious of high APYs: Many “yield farms” may violate new securities rules—read the token’s risk disclosure.

Final Thoughts on crypto regulations in Nigeria 2025

The crypto regulations in Nigeria 2025 represent a fundamental shift from chaos to clarity. With full regulatory backing, Nigeria is opening the door to serious innovation, investment, and user protection.

If you follow the new rules like license your platform, disclose your tokens, and track your taxes. You’ll be well-positioned to thrive in Africa’s largest and fastest-growing crypto economy.

FAQs:

Are cryptocurrencies legal in Nigeria in 2025?
Yes, cryptocurrencies are legal and regulated as securities under the new Investments and Securities Act (ISA) 2025.

Do I need a license to run a crypto exchange in Nigeria?
Yes, all crypto exchanges must register with the SEC and obtain a VASP license to operate legally in Nigeria.

Can Nigerian banks now hold or trade crypto?
No, banks can open accounts for VASPs but cannot trade or hold crypto on their balance sheets.

What is the capital requirement for VASP licensing in Nigeria?
To obtain a VASP license, companies need ₦500 million paid-up capital and a 25% fidelity bond for investor protection.

Are there crypto taxes in Nigeria in 2025?
Yes, digital asset gains above ₦10 million are subject to a 10% Capital Gains Tax under Finance Act 2023.

Can I still use peer-to-peer (P2P) crypto platforms in Nigeria?
P2P is allowed, but NGN pairs may be restricted soon to reduce FX manipulation and protect the local currency.

What happens if I don’t comply with the new crypto laws?
Non-compliance can lead to delistings, account freezes, heavy fines, or criminal penalties enforced by the SEC and CBN.

Are DeFi apps allowed to operate in Nigeria?
Yes, but if they target Nigerians, they must avoid offering unlicensed securities or enter SEC’s regulatory sandbox first.

Is self-custody of crypto still allowed in Nigeria?
Yes, self-custody is legal. But moving funds through regulated exchanges is advised for fiat conversion and compliance safety.

What disclosures are required from crypto projects in Nigeria?
Projects must provide clear prospectus-like disclosures, separate client funds, and translate documents into Yoruba, Hausa, or Igbo languages.