Nigeria Ranked as #6 in Global Crypto Adoption 2025
According to Chainalysis, Nigeria ranks sixth in the world for cryptocurrency adoption in 2025, and this strong position is expected to continue through to 2026. This is quite remarkable for several reasons.
Between July 2023 and June 2024, Nigerians traded about $59 billion worth of cryptocurrency.
Source: Chainanalysis
What’s particularly interesting is that Nigeria’s crypto usage grew by 9% during this period, making it one of just six countries in the top 50 that saw growth in crypto trading.
The main reason why so many Nigerians are turning to cryptocurrency is because of problems with their regular money, the Naira.
When the Naira’s value kept dropping (hitting a really low point in February 2024), many people started using stablecoins – a type of cryptocurrency that tries to keep a steady value.
In fact, in the first three months of 2024, Nigerians traded almost $3 billion in stablecoins alone. About 40% of all stablecoin trading in Sub-Saharan Africa happens in Nigeria.
Another interesting trend is that Nigerians are heavily using DeFi (Decentralized Finance) services, with over $30 billion flowing through these platforms last year.
People are using these services to earn interest on their money, get loans, and trade – things that might be harder to do with traditional banks.
This adoption of cryptocurrency seems to be helping Nigerians deal with tough economic times, including high inflation (over 20% in early 2023) and problems with the government’s attempt to redesign their paper money.
Nigeria is one of the largest crypto markets globally, receiving $92.1 billion in value between July 2024 and June 2025.
The State of Crypto Adoption in Nigeria
Nigeria ranks sixth globally in terms of countries that have a high crypto adoption rate. This is quite remarkable because less than half of Nigerians have internet access or bank accounts.
Even when the government banned banks from dealing with crypto from 2021 to late 2023, Nigerians kept using it heavily.
In 2025, Nigeria’s crypto market is worth about $2.4billion, and around 28.69 million Nigerians are expected to use crypto by 2026.
The US dollar has become more than 400% stronger than the Naira, and when compared to Bitcoin, this difference is even bigger – up to 2600%. This means many Nigerians are using crypto to protect their money’s value.
The recent growth is impressive – by mid-2024, Nigerians had traded $59 billion worth of crypto, which was 9% more than the previous year. This happened even when crypto prices were generally down worldwide.
However, things got a bit complicated when the Nigerian government started cracking down on crypto exchanges like Binance and targeting major crypto traders in the country.
Nigeria has the highest level of cryptocurrency awareness globally, reaching 99%.
Looking ahead, the market is projected to grow, with revenue expected to show an annual growth rate (CAGR 2025-2026) of 3.46%, resulting in a projected total revenue of US$2.5bn by 2026.
With this increase, Nigeria continues to remain one of the world’s most important crypto markets, showing how digital currencies can take root even in places with limited banking and internet access.
Crypto Law In Nigeria
Nigeria’s approach to crypto law has evolved from prohibition to formal regulation.
Before December 2023, the country was quite strict – banks weren’t allowed to deal with anything crypto-related since February 2021. But now, things have opened up significantly. The Central Bank of Nigeria has created new rules that allow banks to work with cryptocurrency businesses, as long as these businesses follow certain guidelines.
The regulatory landscape transformed completely in 2025. President Bola Ahmed Tinubu signed the Investments and Securities Act 2025 (ISA 2025) into law, officially recognizing digital assets and cryptocurrencies as securities for investors and regulars alike. This landmark law replaces the old 2007 statute and grants the Securities and Exchange Commission (SEC) clear authority to regulate the market.
This new law provides the legal foundation for the CBN’s December 2023 circular, which allows banks to open accounts for Virtual Asset Service Providers (VASPs), provided they are fully licensed by the SEC.
Further defining the space, the Nigerian Tax Administration Act (NTAA) 2025 was also passed in June 2025. This act introduces a crucial legal test (based on the “Howey Test”) to determine which virtual assets qualify as securities.
Under this new framework, not all virtual assets are securities. For example, a simple fiat-pegged stablecoin used for payments may not be a security, while a yield-bearing token would be. This suggests a future where the SEC regulates crypto-securities, while the CBN may oversee payment-related assets.
Laws and Regulations Guiding Crypto Exchanges in Nigeria
In Nigeria, companies that want to run crypto exchanges must follow strict rules set by the government, which were solidified in 2025.
Think of it like getting a special business permit – crypto exchanges need to get permission from two important government offices: the Securities and Exchange Commission (SEC) and the Corporate Affairs Commission (CAC).
To start operating:
- Exchanges must have a minimum amount of money, called capital, ₦500 million to be exact.
- Crypto company owners must have a Bank Verification Number (BVN).
- Crypto exchanges verify everyone’s identity through KYC and AML.
- If an exchange wants to create new digital tokens, they need to get approval first by submitting a white paper to the SEC.
- Exchanges must report suspicious transactions to the authorities. Under the NTAA 2025, they are also required to report detailed user transaction data to tax authorities or face significant penalties, including fines of ₦10 million and potential license revocation
- Exchanges must protect customer data and report any data breaches.
- Exchanges must keep records of all transactions for at least five years.
These rules might seem strict, but they show that Nigeria is taking cryptocurrencies seriously as part of its financial system.
The government created different categories for crypto businesses:
- Virtual Assets Service Providers (VASPs) for general trading platforms
- Digital Asset Offering Platforms (DAOPs) for selling new digital assets
- Digital Asset Custodians (DACs) for storing digital assets safely
- Digital Asset Exchanges (DAXs) for trading platforms.
These rules are designed to protect both the customers and the financial system while still allowing cryptocurrency businesses to operate legally in Nigeria.
Crypto Taxation In Nigeria
Nigeria’s rules for crypto taxation were completely overhauled in 2025.
Previously, the Finance Act of 2022 (and 2023) subjected profits from digital assets to a 10% Capital Gains Tax (CGT).
However, the new Nigerian Tax Administration Act (NTAA) 2025, passed in June 2025 and set to take effect in 2026, fundamentally changes this.
The new law stipulates the following:
- For Individuals: The 10% CGT is overridden. Profit from transacting with digital assets is now considered ‘chargeable gains’ and is subject to personal income tax, which can be up to 25%. A key clarification is that this tax applies only to the profit made, not the gross value of the transaction.
- For Exchanges (VASPs): VASPs themselves are liable to pay a 30% corporate income tax on profits earned from their operations, such as transaction fees, especially as relating to the crypto market.
- Mandatory Reporting: The new regime relies on mandatory reporting from exchanges. VASPs are legally required to collect and report detailed user transaction data to the Federal Inland Revenue Service (FIRS). Failure to comply brings heavy penalties, including an initial ₦10 million fine and possible license revocation by the SEC.
This new law is the culmination of plans announced in 2024.
Zacch Adedeji, head of the Federal Inland Revenue Service (FIRS), had stated the government’s intent to regulate and tax the sector to boost Nigeria’s tax-to-GDP ratio.
Cryptocurrency Usage in Different Sector
Cryptocurrency is becoming increasingly popular in Nigeria, especially for specific purposes:
Trading and Investment
Many Nigerians use cryptocurrencies like Bitcoin and Ether for trading and investing their money. In fact, a 2023 survey showed that 90% of Nigerians were interested in investing in cryptocurrencies. Despite past problems with scams like OneCoin and MMM, people have grown more confident in legitimate cryptocurrency trading.
Money Transfers and Remittances
Nigerians living abroad often need to send money back home to their families. While traditional banks handle many of these transfers, some people use cryptocurrencies to move money across borders, especially when sending money out of Nigeria.
However, because of government restrictions, it’s still difficult to convert cryptocurrencies into naira (Nigerian currency), so many people use regular money transfer services to send money into Nigeria.
Banking and Financial Services
Banks are seeing more digital transactions, including remittances, especially among younger customers who prefer doing everything online.
Access Bank, Nigeria’s largest bank, reports that money transfers are a very important part of their business. However, banks can’t directly handle cryptocurrency transactions due to government rules.
Protection Against Economic Problems
Many Nigerians use cryptocurrency, especially stablecoins like Tether, to protect their money from problems in the regular economy.
This makes sense when you consider that the Nigerian currency has lost 60% of its value compared to the US dollar since 2014, and prices keep rising with inflation at 16.5% in April.
Since many young people struggle to find full-time jobs, they look for alternative ways to manage their money.
Education and Technical Knowledge
There’s a growing connection between cryptocurrency and education in Nigeria.
As cryptocurrency becomes more popular, people need to learn about digital technology and financial concepts to use it effectively.
This has led to more focus on digital education, which helps more people understand and use cryptocurrencies safely.
Government and Regulation
The Nigerian government is starting to change its approach to cryptocurrency. New rules from May show they’re becoming more open to it, though with strict controls.
For example, cryptocurrency exchanges must now have at least 500 million naira in capital, and new cryptocurrency projects must submit detailed plans to the government for approval.
Government Regulation and Policies
The International Monetary Fund (IMF) was encouraging Nigeria to embrace cryptocurrency in a controlled way. They’re suggesting that Nigeria should let global crypto exchanges operate legally in the country, but with proper oversight – kind of like how regular banks are supervised.
Authorities should ensure the application of AML/CFT [Anti-Money Laundering and Countering the Financing of Terrorism] controls by crypto trading platforms and other virtual asset service providers through effective AML/CFT risk-based supervision.
The main reason for this change is that many Nigerians are already using cryptocurrency, whether the government likes it or not. The IMF has noted the risks of unregulated flows.
In 2024, Nigerian authorities, when cracking down on unlicensed global platforms, acknowledged that approximately $26 billion in transactions had passed through exchanges from unidentified sources.
The government has tried different approaches. They created their digital currency called the eNaira in 2021, hoping people would use it instead of other cryptocurrencies.
However, this hasn’t worked out very well as less than 1% of Nigerians have downloaded the eNaira wallet, and almost nobody is actively using it. People seem to prefer regular cryptocurrencies because they trust them more and can do more with them.
The IMF thinks this could help Nigeria attract international investment and make it easier for Nigerians living abroad to send money home. They also believe proper regulation could help prevent illegal activities like money laundering.
Timeline of Crypto Regulation in Nigeria
Throughout this journey, Nigeria has moved from being very cautious and restrictive to adopting a more structured and regulated approach to cryptocurrencies, though still with significant oversight and controls.
2016
Nigeria’s crypto regulation story began in 2016 when concerns about the MMM Ponzi scheme prompted the government to take a closer look at Bitcoin. This led to an investigation by both the Central Bank and NDIC.
2017
Things took a stricter turn in 2017 when the Nigerian SEC warned citizens that they wouldn’t recognize or protect any crypto-related investments. They made it clear that if people lost money in crypto, they were on their own.
As many as 4 in 5 Nigerians have a clear understanding of cryptocurrencies
2021
The real crackdown came in February 2021 when the Central Bank took a hard stance, completely banning banks from handling anything related to crypto.
They were worried about money laundering and terrorism financing. Some Nigerians even had their bank accounts frozen just for being involved with crypto.
Later that year, Nigeria made an interesting move by launching its digital currency, the eNaira, becoming Africa’s first country to have a Central Bank Digital Currency.
2022
By 2022, the approach started to soften somewhat. The SEC released new rules about digital assets in May, setting up a framework for how financial institutions could work with crypto. They required crypto exchanges to have quite a bit of money on hand – 500 million Naira – to get licensed.
2023
2023 was a year of significant changes. In May, they introduced a 10% tax on crypto gains, and by December, they made a big shift by lifting the 2021 ban on banks working with crypto providers. The Central Bank admitted they needed to keep up with global trends.
2024
In January 2024, the Central Bank released guidelines for banks to open crypto accounts, though banks still can’t trade crypto themselves.
These rules include strict customer checks and limits on transactions, showing that Nigeria is trying to find a balance between allowing crypto and controlling its risks.
2025
It’s been an eventful year for crypto in Nigeria as the Investments and Securities Act (ISA) 2025 has now been signed into law, legally recognizing crypto as securities and empowering the SEC. In June, the Nigerian Tax Administration Act (NTAA) 2025 is also passed, establishing a new tax framework (up to 25% income tax on gains) and mandatory VASP reporting, effective in 2026.
Challenges to Crypto Adoption in Nigeria
Crypto adoption in Nigeria faces several challenges despite its growing popularity. Here are some key obstacles:
Regulatory Uncertainty
While the 2025 laws (ISA and NTAA) have created a clear legal and tax framework, the industry is still adapting from years of regulatory uncertainty, which included an outright banking ban from 2021 to late 2023. This uncertainty can make it difficult for businesses and individuals to navigate the legal landscape.
Economic Instability
Nigeria’s economy has been plagued by high inflation and a weakening currency. While this has driven many to seek alternative financial solutions like cryptocurrencies, it also creates a volatile environment that can deter investment and adoption.
Volatility in the cryptocurrency market is the biggest barrier to crypto adoption in Nigeria.
Scams and Ponzi Schemes
The crypto space in Nigeria has been tarnished by numerous scams and fraudulent schemes. This has led to a lack of trust among potential users and has made it harder for legitimate crypto businesses to gain traction.
Limited Access to Traditional Banking
Many Nigerians lack access to traditional banking services, which can make it difficult for them to engage with crypto platforms that require bank accounts or credit cards. However, the rise of peer-to-peer (P2P) trading has helped to mitigate this issue.
Potential Benefits of Crypto Adoption in Nigeria
The potential benefits of crypto adoption in Nigeria are significant and multifaceted. Here are some of the key advantages:
Improved Agricultural Financing
Nigerian farmers could get better access to money for their farming activities through blockchain and cryptocurrency.
This could help them buy seeds, equipment, and other necessary materials more easily.
Since many Nigerian farmers struggle to get traditional bank loans, crypto could offer a new way to fund their farms, which could lead to more food production and better food security in the country.
Better Financial Education
As more Nigerians learn about cryptocurrency, they naturally learn about modern financial systems and digital technology.
This knowledge helps people understand how to manage money.
When people understand crypto, they often become more comfortable with other digital financial services too, which is important for Nigeria’s growing digital economy.
Financial Access for More People
Cryptocurrency could help bring financial services to Nigerians who don’t have bank accounts. Since you only need a phone with internet to use crypto, people in rural areas or those without traditional bank access could still save, send, and receive money. This could help more Nigerians participate in the digital economy.
Most Nigerians want to use crypto profits to start a business (40%) and improve their families’ lives (40%).
New Income Opportunities
Cryptocurrency trading and related businesses could create new ways for Nigerians to earn money. Young people especially might find work opportunities in crypto-related fields, like blockchain development, crypto trading, or teaching others about digital currencies.
Protection Against Currency Problems
When the Nigerian Naira loses value due to inflation, some Nigerians might use cryptocurrency as another way to store their money. While crypto prices can go up and down a lot, some people see it as a way to protect their savings from local currency problems.
Easier International Trade
Nigerian businesses that buy and sell internationally might find it easier to use cryptocurrency for their transactions. Crypto can make sending money across borders faster and sometimes cheaper than traditional banking systems, which could help Nigerian businesses grow internationally.
Government Revenue Through Regulation
With the NTAA 2025, the government has created a formal mechanism to earn revenue through corporate and personal income taxes on crypto activities. This is a key part of the national strategy to increase Nigeria’s tax-to-GDP ratio. This extra money could help the government fund important projects and development programs.
More Investment Options
Cryptocurrency gives Nigerians another way to invest their money alongside traditional options like stocks and real estate. This variety in investment choices could help people build wealth in different ways.
Conclusion
Cryptocurrency is deeply important in Nigeria. Many people use it because their local currency, the Naira, keeps losing value. Crypto helps protect their money.
The government has taken different approaches to regulating crypto, but the overall trend is towards more rules and oversight.
This could help Nigeria get the benefits of crypto, like better access to finance and new business opportunities.
