Are Crypto Payments Allowed in Nigeria? The 2026 Legal Reality

Can you legally accept Bitcoin or Ethereum as payment in Nigeria? The answer isn’t a simple yes or no - it’s layered, changing, and now firmly grounded in law. As of January 2026, crypto payments are allowed in Nigeria - but only if you follow the rules. This isn’t the wild west anymore. The government has stepped in, set clear boundaries, and created a system where legitimate crypto businesses can operate - and where scams get shut down fast.

It’s Legal, But Not Legal Tender

Nigeria doesn’t treat Bitcoin or other cryptocurrencies as official money. You can’t use them to pay your taxes, buy a government bond, or settle a public utility bill. The naira is still the only currency the state recognizes for those purposes. But that doesn’t mean crypto is banned. In fact, Nigerians traded over $92 billion in crypto between July 2024 and June 2025 - more than any other country in the world. People use it for remittances, savings, online shopping, and even paying freelancers. The demand was always there. Now, the law has caught up.

The Big Change: Investments and Securities Act (ISA) 2025

The game shifted in March 2025 when President Tinubu signed the Investments and Securities Act (ISA) 2025. This law didn’t just tweak rules - it rewrote the playbook. For the first time, cryptocurrencies were officially recognized as securities under Nigerian law. That means they’re now regulated like stocks and bonds, not treated as illegal gambling or uncontrolled digital cash.

The Securities and Exchange Commission (SEC) became the main regulator. Every crypto exchange, wallet provider, or payment processor that handles Nigerian users must now register with the SEC and get a license. If you’re running a crypto business in Nigeria, you’re no longer flying under the radar. You’re subject to audits, reporting, and strict compliance checks.

Who’s Licensed? And Who’s Not?

A few Nigerian platforms got approved early. Quidax and Busha were among the first to pass the SEC’s vetting process in late 2024. These are now the only crypto services you can confidently use if you want to stay on the right side of the law. They’re required to follow anti-money laundering rules, verify user identities, and keep records of every transaction.

But here’s the catch: international platforms like Binance, Kraken, or Coinbase aren’t automatically allowed. If they don’t apply for and receive a Nigerian license, they’re operating illegally in the country. Many users still access them - but they’re doing so at their own risk. The SEC has already started cracking down on unlicensed platforms, freezing accounts and blocking websites.

Banks Can Now Work With Crypto Companies

Back in 2021, the Central Bank of Nigeria (CBN) told banks to cut off crypto businesses. That caused chaos. People couldn’t deposit or withdraw naira from their crypto wallets. The ban pushed trading underground and made everything slower.

That changed in December 2023. The CBN reversed course and issued new guidelines allowing banks to serve SEC-licensed crypto firms. Now, if you’re using Quidax or another licensed exchange, you can link your bank account. You can deposit naira, cash out profits, and even get paid in crypto - all without your bank freezing your account.

This is huge. It means crypto payments are becoming part of the real financial system - not just a side hustle.

Taxes Are Now Official - And They Start January 2026

If you made money from crypto in 2025, you might have thought you didn’t owe taxes. That changed on January 1, 2026. The Nigerian Tax Administration Act (NTAA) 2025 came into force, and crypto is now officially taxable.

Here’s how it works:

• You don’t pay tax just for holding Bitcoin or Ethereum.
• You pay tax when you sell, trade, or cash out - any time you make a profit.
• Individuals pay personal income tax on crypto gains, up to 25% depending on your total income.
• Businesses pay corporate tax: 20% if you earn between ₦25 million and ₦100 million annually, 30% if you earn more.
• And if you run a crypto exchange or payment service, you must charge 7.5% VAT on transaction fees.

This isn’t the highest tax rate in the world - it’s actually seen as fair by many experts. But for users who’ve always operated in the shadows, this is a big shift. Many didn’t track their gains. Now, they need to.

What’s Still Banned?

Just because crypto is legal doesn’t mean everything goes. The SEC and NFIU have made it clear: fraud won’t be tolerated. Here’s what’s still illegal:

• Ponzi schemes disguised as crypto investments (like “Bitcoin Millionaire” programs)
• Unlicensed crypto exchanges operating without SEC approval
• Using crypto to launder money or hide illegal funds
• False advertising - claiming your crypto product is “guaranteed to double your money”

Regulators now have access to telecom records to track down scammers. The Economic and Financial Crimes Commission (EFCC) has been actively investigating fake crypto apps and influencers pushing scams. If you’re running a business, make sure you’re clean. If you’re investing, be skeptical of anything that sounds too good to be true.

Real-World Use Cases Today

So what does this look like in practice?

A Lagos-based freelance designer accepts Ethereum from a client in Germany. They use Quidax to convert it to naira and deposit it into their bank account - all legal, all tracked. A small e-commerce store in Abuja lets customers pay with USDT. They use a licensed payment processor that auto-converts crypto to naira and deposits it daily. A student in Port Harcourt sends $200 in Bitcoin to their sister in Ghana - bypassing expensive wire fees.

These aren’t exceptions. They’re becoming normal. The infrastructure is there. The rules are clear. The banks are open.

The Downside: Cost, Complexity, and Limited Choices

It’s not all smooth sailing. The licensing process is slow. Some smaller crypto startups can’t afford the compliance costs. The SEC’s vetting takes months. Some users are frustrated that they can’t use their favorite international exchange anymore.

Also, while the tax rules are fair, they’re unfamiliar. Many Nigerians have never filed crypto taxes before. There’s no easy app yet to auto-calculate gains. You need to track every trade - buy, sell, swap - and keep records.

And if you’re not using a licensed platform? You’re exposed. Your funds could be frozen. You could lose access. There’s no protection.

What’s Next?

The Nigerian government isn’t done. Regulators are still working out the finer details - how to classify NFTs, how to handle DeFi lending, how to tax staking rewards. But the foundation is set. Crypto isn’t going away. It’s being brought into the light.

For users: stick with licensed platforms. Keep records. Pay your taxes. Don’t chase hype.

For businesses: get licensed. Build compliance into your product. Work with banks. Play by the rules - because the penalties are steep. A first offense can cost you ₦10 million ($6,693), plus ₦1 million per month after that.

The era of crypto in Nigeria’s gray zone is over. The new era is regulated, taxed, and monitored - but also real, scalable, and here to stay.