This jurisdiction has evolving or restrictive regulations that require careful compliance. Additional licensing, reporting, or operational constraints may apply.
Nigeria Cryptocurrency Regulatory Overview
Nigeria has one of the world's highest cryptocurrency adoption rates despite regulatory restrictions. The Central Bank of Nigeria banned banks from servicing crypto businesses in 2021, though crypto trading remains legal. Nigerians continue to trade through P2P platforms and international exchanges. The government launched the eNaira CBDC as an alternative. High adoption is driven by remittances, inflation, and currency devaluation. The regulatory environment is restrictive but enforcement is limited. The situation is characterized by high grassroots adoption despite official discouragement.
Nigeria Blockchain Compliance Requirements
Legal Status: Legal for individuals; banking restrictions (2021). Banking Ban: Banks prohibited from servicing crypto businesses. Adoption: Among world's highest despite restrictions. CBDC: eNaira launched as government alternative. Trading: Continues via P2P and international platforms. Drivers: Remittances, inflation, naira devaluation. Regulation: Restrictive but limited enforcement. Taxation: Unclear framework. Risk Level: High; banking restrictions and regulatory uncertainty. Future: Potential for policy evolution.
Crypto Licensing Requirements in Nigeria
Licensing is mandatory for Virtual Assets Service Providers (VASPs) under the SEC's Digital Assets Rules. Requirements include a minimum paid-up capital of N500,000,000 and a registration fee of N30,000,000 for a VASP license. These licensed entities must also adhere to strict AML/KYC and CFT compliance standards.
Cryptocurrency Tax Treatment in Nigeria
Profits from the disposal of digital assets are subject to Capital Gains Tax (CGT) at a rate of 10%. Income derived from cryptocurrency is subject to Personal Income Tax, with rates up to 25%.
Official Sources & Regulatory References
https://sec.gov.ng/, https://www.goldsmithsllp.com/how-virtual-assets-service-providers-can-obtain-licenses-in-nigeria/, https://ng.andersen.com/the-investment-and-securities-act-2025-a-new-era-for-digital-assets-and-financial-disclosure/, https://blog.vent.africa/what-is-crypto-tax-in-nigeria/801/, https://www.mariblock.com/nigeria-set-to-tax-individual-crypto-transactions-and-exchanges-in-2026/
AML/CFT requirements may be stringent or evolving. Enhanced due diligence may be required.
Enforcement actions may be unpredictable or strict. Monitor regulatory developments closely.
Disclaimer: This information is provided for general guidance only and should not be considered legal advice. Regulations change frequently. Always consult with qualified legal professionals in the relevant jurisdiction before making business decisions.