Nigeria -- Regulatory Status Regulatory Overview

Nigeria's regulatory approach to cryptocurrency and virtual assets is comprehensive, classifying them as securities and digital property (not legal tender) under active oversight, with licensing, taxation, and AML/CFT requirements for trading and exchanges[1][2].

Primary Regulatory Bodies

• Securities and Exchange Commission (SEC): Oversees crypto exchanges, Virtual Asset Service Providers (VASPs), and digital asset platforms as securities; enforces capital markets regulations and licensing[1][2].
• Federal Inland Revenue Service (FIRS), transitioning to Nigeria Revenue Service (NRS): Handles crypto taxation, collects taxes on trading gains, and mandates exchange transaction reporting starting January 1, 2026[1].
• Central Bank of Nigeria (CBN): Relaxed prior banking restrictions on licensed VASPs and supports AML/CFT/CPF supervision pilots[2].

Key Legislation

• Finance Act 2023: Established the foundational tax framework for cryptocurrencies[1].
• Investments and Securities Act (ISA) 2025: Classifies cryptocurrencies as securities under capital markets regulation; formally recognizes digital assets[1][2].

(Note: SEC has issued new capital requirements for digital asset firms, with compliance deadline of June 30, 2027, or risk license suspension[3].)

Current Stance on Crypto Trading and Exchanges (as of 2026)

Cryptocurrency is legal for owning, buying, selling, and trading, but not as legal tender for payments[1]. Exchanges must obtain SEC licenses, report user transactions to NRS (mandatory from January 1, 2026), comply with AI-enhanced monitoring, and link data to national IDs (BVN, NIN, TIN)[1]. CBN enables banks to work with licensed providers under relaxed rules and AML/CFT pilots, marking a shift toward innovation-friendly regulation with consumer protections[2]. Non-compliant exchanges risk license revocation[1][3]. Tax filing occurs via the TaxPro-Max system[1].