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Crypto Regulation in Nigeria

Legal

Nigeria is the largest crypto market in Africa by volume. The SEC issued rules for digital asset exchanges in 2022 and began licensing VASPs in 2024. The CBN lifted its 2021 banking ban on crypto in late 2023, allowing banks to service licensed VASPs.

Region: Africa WestCurrency: NGNAdoption Rank: #2Risk Score: 40/100

Tax Information

Capital Gains (Personal)
10% Capital Gains Tax on disposal of digital assets
Capital Gains (Corporate)
30% Companies Income Tax; 10% CGT on asset disposals
VAT on Crypto
No
Staking Tax
No specific guidance; likely taxable as income
Airdrop Tax
No specific guidance
Mining Tax
Subject to income tax if conducted as a business
Summary
Nigeria imposes a 10% CGT on disposal of digital assets under the Finance Act 2023. Corporate crypto income is subject to standard Companies Income Tax at 30%. VAT does not apply to financial transactions including crypto. The FIRS has indicated it is developing more detailed crypto tax guidance.

Licensing & Registration

License Required
Yes
Regulator
SEC Nigeria (Securities and Exchange Commission of Nigeria)
Framework
Rules on Issuance, Offering Platforms and Custody of Digital Assets (2022, amended 2024)
License Types
Digital Asset Exchange (DAX), Digital Asset Offering Platform (DAOP), Digital Asset Custodian
Estimated Cost (USD)
$20,000 - $150,000
Timeline
3-12 months
Ease of Licensing
Medium
Notes
The SEC Nigeria commenced VASP registration in 2024 under its Accelerated Regulatory Incubation Programme (ARIP). Applicants must demonstrate robust KYC/AML controls, cybersecurity measures, and minimum capital. The CBN reversed its directive banning banks from servicing crypto entities in December 2023, enabling licensed platforms to access banking rails.

AML / KYC

KYC Required
Yes
Travel Rule
No
FATF Member
No
FATF Status
Partially Compliant
Suspicious Activity Reporting
Yes

Mining

Mining Legal
Yes
Status
Restricted
Electricity Cost ($/kWh)
$0.06
Renewable Energy
20%
Climate
Tropical
Infrastructure
Good
Tax on Mining Income
30% Companies Income Tax; 10% CGT on asset disposals
Notes
Competitive electricity prices. Mining operations are economically viable.

DeFi, Stablecoins & NFTs

DeFi: unclearStablecoins: no rulesNFTs: no_rulesCBDC: launched

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Limited Liability Company
Licensing Support
Available | $25,000 - $100,000

Sources

Securities and Exchange Commission Nigeria National Assembly of Nigeria Central Bank of Nigeria
Reviewed: 2026-03-15verified

Frequently Asked Questions

Is crypto legal in Nigeria?
Cryptocurrency is currently classified as "Legal" in Nigeria. Nigeria is the largest crypto market in Africa by volume. The SEC issued rules for digital asset exchanges in 2022 and began licensing VASPs in 2024. The CBN lifted its 2021 banking ban on crypto in late 2023, allowing banks to service licensed VASPs.
What is the crypto tax rate in Nigeria?
In Nigeria, the personal capital gains tax on crypto is 10% Capital Gains Tax on disposal of digital assets, and the corporate tax rate is 30% Companies Income Tax; 10% CGT on asset disposals. Nigeria imposes a 10% CGT on disposal of digital assets under the Finance Act 2023. Corporate crypto income is subject to standard Companies Income Tax at 30%. VAT does not apply to financial transactions including crypto. The FIRS has indicated it is developing more detailed crypto tax guidance.
Do I need a crypto license in Nigeria?
Yes, a crypto license is required in Nigeria. The regulator is Securities and Exchange Commission of Nigeria under Rules on Issuance, Offering Platforms and Custody of Digital Assets (2022, amended 2024). Estimated licensing cost: $20,000 - $150,000.
Is crypto mining legal in Nigeria?
Yes, crypto mining is legal in Nigeria. Electricity costs approximately $0.06/kWh. Mining income is taxed at: 30% Companies Income Tax; 10% CGT on asset disposals. Competitive electricity prices. Mining operations are economically viable.
What are the AML/KYC requirements for crypto in Nigeria?
Yes, crypto businesses in Nigeria must comply with KYC (Know Your Customer) requirements. FATF compliance status: partially_compliant.