Is Crypto Legal in Nigeria?

Securities and Exchange Commission (SEC): Responsible for regulating securities markets, including digital assets classified as securities.

Central Bank of Nigeria (CBN): Oversees financial institutions and may regulate certain crypto activities under the Financial Crimes Enforcement Network (FACENET).

Investments and Securities Act, 2007 (ISA) No. 29 of 2007: Provides comprehensive legal provisions for securities regulation.

Investments and Securities Bill, 2025 (ISB): Assented to on February 28, 2026, repealing ISA 2007 and modernizing regulatory frameworks.

Member of the Financial Services Regulation Coordinating Committee (FSRCC) and IOSCO, aligning with global securities regulation standards.

Entities Requiring License: Any entity offering tokenized securities or digital asset services that are classified as securities must register with the SEC.

Submit an application through the SEC's ePortal for full electronic registration.

Provide detailed prospectus and compliance documentation.

Timeline: Processing typically takes 30–60 days post-submission, subject to review by the Securities and Exchange Commission’s Capital Market Committee (CMC).

Capital Requirements: No explicit monetary thresholds are set for crypto-related licenses under ISB 2025; however, existing registration fees apply.

Structural Requirements: Entities must comply with corporate governance standards outlined in the ISA/ISB, including maintaining adequate internal controls and disclosures.

Licensed Entities: As of February 2026, no entities have been specifically licensed for cryptocurrency or digital asset activities under ISB 2025; however, existing securities registrants may include tokenized offerings within their scope.

Customer Due Diligence (CDD): Mandatory verification of client identities before onboarding.

Enhanced Due Diligence (EDD): Required for high-risk clients or transactions exceeding specified thresholds.

Suspicious Transaction Reporting (STR): Obligation to report suspicious activities to the CBN and SEC within 24 hours.

Record Retention: Maintain KYC/AML records for a minimum of five years.

Beneficial Ownership Disclosure: Entities must disclose beneficial ownership information as per SEC guidelines.

Penalties: Fines ranging from N100,000 to N5 million or imprisonment for up to 5 years for violations under ISA/ISB.

No specific enforcement actions against crypto entities have been reported as of February 2026; however, the SEC has issued warnings regarding unregistered token sales.

Capital Gains Tax: Profits from cryptocurrency transactions classified as securities are subject to capital gains tax at a rate of 10%.

Income Tax: Trading income from crypto activities may be taxed as business income under relevant provisions of the Companies Income Tax Act (CITA).

VAT: Standard VAT rate of 7.5% applies to taxable supplies of digital assets, including exchanges and related services.

Regulatory Ambiguity: Lack of specific licensing pathways for cryptocurrency exchanges and initial coin offerings (ICOs) leaves a regulatory gap.

Enforcement Consistency: Limited enforcement actions against crypto entities due to unclear jurisdictional authority between SEC and CBN.

Technical Expertise: The SEC's technical expertise in digital asset technologies remains underdeveloped, potentially hindering effective oversight.

President Ahmed Bola Tinubu GCFR has assented to the Investments and Securities Bill (ISB) 2025, which repeals the Investments and Securities Act No. 29 of 2007 President Tinubu Assents to ISB 2025

The SEC now offers full electronic registration (e-Registration) on its ePortal, enhancing regulatory processes for securities market participants Full Electronic Registration Available

No specific licenses for cryptocurrency exchanges or digital asset services have been issued under ISB 2025, though tokenized securities must comply with existing registration requirements No Specific Licenses Issued

The Nigerian Securities and Exchange Commission (SEC) remains the primary regulator for digital assets classified as securities under ISA/ISB SEC Regulates Digital Assets

Capital gains from crypto transactions classified as securities are taxed at a rate of 10% under the Companies Income Tax Act Capital Gains Tax Rate

The SEC has not issued any enforcement actions against cryptocurrency entities as of February 2026, citing regulatory gaps No Enforcement Actions Reported

Full Electronic Registration (e-Registration) now available on the ePortal

President Tinubu Assents to ISB 2025

World Bank FSAP Report on Nigeria's Securities Regulation