Cryptocurrency in Nigeria: Legal Status and Regulatory Developments

Cryptocurrency is not illegal in Nigeria, but it operates under a complex regulatory environment. In February 2021, the Central Bank of Nigeria (CBN) prohibited financial institutions from facilitating cryptocurrency transactions, effectively banning crypto-related banking services. However, the Securities and Exchange Commission (SEC) of Nigeria has taken steps to regulate digital assets that qualify as securities, aiming to ensure investor protection and market integrity.

In May 2022, the SEC released comprehensive rules for the issuance, offering platforms, and custody of digital assets. These rules require entities involved in digital asset services to register with the SEC and comply with specific regulatory requirements. The SEC also initiated the Accelerated Regulatory Incubation Program (ARIP) to onboard existing digital asset service providers into the regulatory framework.

The Commission is mandated to regulate digital/crypto-token investments that qualify as securities and investment transactions(1).

Additionally, the National Information Technology Development Agency (NITDA) has developed a National Blockchain Policy to guide the adoption and regulation of blockchain technologies, including cryptocurrencies, in Nigeria. The policy aims to create a regulatory framework that enables the safe and responsible use of cryptocurrencies in the country.

Source:
https://sec.gov.ng/wp-content/uploads/2022/05/Rules-on-Issuance-Offering-and-Custody-of-Digital-Assets.pdf
https://nitda.gov.ng/wp-content/uploads/2023/05/National-Blockchain-Policy.pdf

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.