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.
June 2025- Digital Asset Rules
April 2025- SEC Delay in Licensing
March 29, 2025- Investments and Securities Act (ISA) 2025
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:
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:
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 |
Is crypto taxable in Nigeria? Yes, crypto is subject to tax in Nigeria since it is considered securities under the new ISA law.
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 |
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.
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.
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