[DISCUSSION] Nigeria stance on Bitcoin today

[OsaiEmma]

Hello my country people, I'm creating this thread for us Nigerians to really discuss the stance of our country and government when it comes to crypto matter, cause it seems like some of us are thinking crypto related transactions is illegal in Nigeria.

Before we dive into this, I'll like to lay out some of the information I know and some research I did on this particular topic

MY LITTLE KNOWLEDGE
I remember very well when crypto was really booming in Nigeria, around 2016 - 2020, there was a lot of scam activities accompanying it's rapid growth, this was one of the main reasons back then the government started pushing hard to ban crypto, I remember very well back then I was really criticizing the government, I mean what nonsense right, anyways, CBN went ahead to ban any crypto related transactions in banks, but that doesn't mean you'd be labeled a criminal or a fraudster if you carry out crypto related transactions, but your transactions won't be processed, and your money fit hang 

Anyways, around 2023, I started hearing that yeah, crypto ban is now lifted, the government are accepting crypto companies but are creating tax law to tax them, I was like, yes...they are looking to banking on them though  but still, I felt like it was a welcome development. At some point, they started banning some crypto companies in Nigeria, honestly I thought the banning was a way of reverting back to their old policy of not accepting any crypto related transactions in Nigeria banks, but it was just about the non-compliance of these companies.

MY RESEARCH
Around 2021 crypto related transactions was banned by CBN this Mondaq article explains it better and more,
It says

In February 2021, the Central Bank of Nigeria (CBN) banned financial institutions from facilitating cryptocurrency transactions, aiming to address concerns over fraud, volatility, and financial crime.1 However, this move drove crypto activity underground, sparking a rise in peer-to-peer trading.

In 2023, the ban was lifted

Recognising the limitations of its rigid stance, the CBN introduced the Guidelines on the Operations of Bank Accounts for Virtual Assets Service Providers dated 22nd December 2023 (the Guidelines) and published as a circular on CBN's website on 2nd January 2024.3 The Guidelines mark a shift towards regulating Virtual Assets Service Providers (VASPs) and formalising crypto operations in Nigeria, while enforcing stricter compliance to prevent illicit activities.

If you read down the article I am quoting from and also this Wiki article , you'll find out that, right now, cryptocurrency and Bitcoin transactions and operations are fully legal and regulated in Nigeria under CBN and SEC (security and exchange commission of Nigeria).
Although, Bitcoin and crypto isn't viewed as a legal tender, but some crypto is seen as security(that is to say, it is treated as an investment assets, like stocks, shares, bonds, e.t.c), Bitcoin is treated as a digital asset, as the baba e be.

What are your thoughts and findings on the Stance of cryptocurrency and Bitcoin in Nigeria today

[Sonia_123]

Crypto transactions in Nigeria is illegal ooo, don't allow anybody to deceived you, if it is not illegal why has the government not officially announced crypto uses in the country, why are we not freely spending it, why are crypto users hiding, we have alot of crypto users in our country but they are not free to tell people their source of income, they are not proud of what puts food on their table because of safety, not wanting to be arrested by the government.

Crypto still remains ban in Nigeria, no crypto transactions in the banks or approved by the government or government agency, the Nigeria government I know is not ready to accept crypto at anytime time, do not make yourself available, keep calm in spending your crypto.

[OsaiEmma]

Crypto transactions in Nigeria is illegal ooo, don't allow anybody to deceived you, if it is not illegal why has the government not officially announced crypto uses in the country, why are we not freely spending it, why are crypto users hiding, we have alot of crypto users in our country but they are not free to tell people their source of income, they are not proud of what puts food on their table because of safety, not wanting to be arrested by the government.

Crypto still remains ban in Nigeria, no crypto transactions in the banks or approved by the government or government agency, the Nigeria government I know is not ready to accept crypto at anytime time, do not make yourself available, keep calm in spending your crypto.

These are just speculative opinion, crypto operations are not illegal in Nigeria, go do your research, yes crypto as a whole is not fondly looked upon by the government because of what it represents, but that doesn't mean it is in anyway illegal, if the police harasses you because you're a crypto user, it is not strange, Nigeria police arrest people because of the most stupid reason you can think of, my secondary school class mate who is now a police officer told me one time that his colleague arrested someone because he was holding birth control pills  isn't that funny, but the truth is that, crypto transactions in Nigeria aren't illegal, if it were, why are they coming to some sort of agreement with CEx's, even Quidax and some other wallets now use naira for buying and selling of cryptocurrency, isn't that proof that crypto is solid in Nigeria?

Nigeria government doesn't fully embrace cryptocurrency, but it is no longer prohibited, when Quidax stopped supporting deposit and withdrawal in naira, that was when the bank and government prohibited crypto, but now, Quidax fully supports it, that should tell you a lot about the Nigeria's stance of cryptocurrency and Bitcoin in today

[Tonimez]

[Edited out]

Nigeria government doesn't fully embrace cryptocurrency, but it is no longer prohibited, when Quidax stopped supporting deposit and withdrawal in naira, that was when the bank and government prohibited crypto, but now, Quidax fully supports it, that should tell you a lot about the Nigeria's stance of cryptocurrency and Bitcoin in today

I don't know how you want it to be explained before you admit that cryptocurrency is still not allowed in Nigeria. There's nothing like "The government doesn't fully embrace cryptocurrency ". Having this knowledge should tell you that whatever is not backed by the law is against the law. This is not a matter of police being unprofessional, if  appropriate security agencies arrest you on the basis of crypto currency transactions in Nigeria, then you will realise that the Investments and Securities Act 2025 allowed several loopholes to allow relevant security agencies to crack down on users. How many times have paid tax on any of your transactions? These a part of the regulatory compliance areas that you can be extorted from. So it's much better to trade with caution and avoid anything that will expose you to arrest or trying to prove yourself right.

[Mate2237]

To the best of my knowledge crypto currency has been made a security asset by the security and exchange commission, so crypto currency is not illegal in Nigeria. You can transact on it after all you pay tax via your trading fees if am not mistaken. So in Nigeria of today crypto currency is a legal entity that has been back up by law.


The problem with many people is that they don't know the law and stands on certain issues that is why they get to be afraid. Police can arrest you in Nigeria on virtually every thing even on things that are legal and crypto is one of such things. So the next time you have an encounter with police relating to you holding crypto, you have to stand your ground by enlightening then that you are doing a legitimate business.

[Nathrixxx]

More Nigerians are getting more excited about bitcoin investment and this is because of the opportunity they have had about it, it is more exciting, considering that it is considered the decentralized digital currency that is not affected by the incidence of inflation. The government also does not have control over it, people have been tired of using the traditional financial system, everything is now going towards the digital era and bitcoin has been the center of everyone's focus on privacy security, and profitability.

[OsaiEmma]

I don't know how you want it to be explained before you admit that cryptocurrency is still not allowed in Nigeria. There's nothing like "The government doesn't fully embrace cryptocurrency ". Having this knowledge should tell you that whatever is not backed by the law is against the law. This is not a matter of police being unprofessional, if  appropriate security agencies arrest you on the basis of crypto currency transactions in Nigeria, then you will realise that the Investments and Securities Act 2025 allowed several loopholes to allow relevant security agencies to crack down on users. How many times have paid tax on any of your transactions? These a part of the regulatory compliance areas that you can be extorted from. So it's much better to trade with caution and avoid anything that will expose you to arrest or trying to prove yourself right.

If you have truly read the article or brief you cited, you'll see that even CBN have removed the prohibition placed on banks in regards to the usage of cryptocurrencies by placing regulatory guidelines and rules on their usage, it is listed as a security asset right now hereby enabling it's trading, and any related operations, this is clearly stated in the article link you provided not my sources.

Luno and Quidax for instance haunted the use of Naira after the 2021 ban placed on banks by CBN, right now, you can see that luno and Quidax have resumed transactions with naira because the ban have been revised and removed, now CBN and SEC treated Bitcoin and cryptocurrencies as security assets that are traded digitally, so that restriction is no longer there.

[Dex_master25]

I don't know how you want it to be explained before you admit that cryptocurrency is still not allowed in Nigeria. There's nothing like "The government doesn't fully embrace cryptocurrency ". Having this knowledge should tell you that whatever is not backed by the law is against the law. This is not a matter of police being unprofessional, if  appropriate security agencies arrest you on the basis of crypto currency transactions in Nigeria, then you will realise that the Investments and Securities Act 2025 allowed several loopholes to allow relevant security agencies to crack down on users. How many times have paid tax on any of your transactions? These a part of the regulatory compliance areas that you can be extorted from. So it's much better to trade with caution and avoid anything that will expose you to arrest or trying to prove yourself right.

If you have truly read the article or brief you cited, you'll see that even CBN have removed the prohibition placed on banks in regards to the usage of cryptocurrencies by placing regulatory guidelines and rules on their usage, it is listed as a security asset right now hereby enabling it's trading, and any related operations, this is clearly stated in the article link you provided not my sources.

Luno and Quidax for instance haunted the use of Naira after the 2021 ban placed on banks by CBN, right now, you can see that luno and Quidax have resumed transactions with naira because the ban have been revised and removed, now CBN and SEC treated Bitcoin and cryptocurrencies as security assets that are traded digitally, so that restriction is no longer there.

You are absolutely right and this is what triggered my interest in investing in Bitcoin currently. I don't trust banks to hold my funds nowadays with inflation breathing down the neck of our economy due to ongoing wars.
Am certain that holding BTC would be more profitable than savings in a bank where charges and taxes are regularly deducted.
My only issue is how to secure a hardware wallet or how safe is using something like an electrum wallet in holding my BTC for now.
If I can resolve this with further research and answers from more enlightened folks here, I would have solved one huge financial concern for my future.

[Callido]

More Nigerians are getting more excited about bitcoin investment and this is because of the opportunity they have had about it, it is more exciting, considering that it is considered the decentralized digital currency that is not affected by the incidence of inflation. The government also does not have control over it, people have been tired of using the traditional financial system, everything is now going towards the digital era and bitcoin has been the center of everyone's focus on privacy security, and profitability.

I don't align with your idea, about Nigeria stance on Bitcoin, we barely use Bitcoin as a tool to escape inflation. The more Nigerian i see get to involve themselves with Bitcoin is basically because it is a profitable source of investment, how many of us can say when last we used Bitcoin as a payment option, the greater adoption has been because, Bitcoin is profitable, or else, there will be lesser number of people interested in the market than we have today.

[Fiatless]

I don't know how you want it to be explained before you admit that cryptocurrency is still not allowed in Nigeria. There's nothing like "The government doesn't fully embrace cryptocurrency ". Having this knowledge should tell you that whatever is not backed by the law is against the law. This is not a matter of police being unprofessional, if  appropriate security agencies arrest you on the basis of crypto currency transactions in Nigeria, then you will realise that the Investments and Securities Act 2025 allowed several loopholes to allow relevant security agencies to crack down on users. How many times have paid tax on any of your transactions? These a part of the regulatory compliance areas that you can be extorted from. So it's much better to trade with caution and avoid anything that will expose you to arrest or trying to prove yourself right.

I got this information from the document you quoted.

Digital assets are gaining traction globally, with countries adopting them under regulatory oversight. Nigeria has joined this trend, legally recognising digital and virtual assets as capital market securities. Cryptocurrency, a form of virtual and digital asset, was initially met with mixed reactions in the market following the Central Bank of Nigeria (CBN)'s prohibition of banks and other financial institutions from processing or enabling crypto transactions in Nigeria.

However, the landscape is evolving, opening up new opportunities for virtual and digital assets, such as cryptocurrencies and digital tokens. The ISA expressly expands the definition of “securities” to include virtual assets such as cryptocurrencies, tokens, and other blockchain-based instruments. Section 357(c) of the Act defines securities to include virtual and digital assets. This means that all Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOs), and Digital Asset Exchanges (DAEs) are subject to the oversight of the Securities and Exchange Commission (SEC). This statutory recognition means that cryptocurrencies and related digital assets are now subject to the same regulatory oversight as traditional securities in Nigeria14

https://ir.nilds.gov.ng/bitstream/handle/123456789/1795/Crypto%20currency%20Issue%20Brief.pdf?sequence=1&isAllowed=y

The use of cryptocurrency has never been banned in Nigeria. The government only restricted banks and other financial institutions from dealing in it. Any law enforcement agencies who claims that the use of crypto is against the law is lying. If it were against the law, why would the government give lincense to two crypto exchange companies. If you engage in crypto transactions with SEC-registered service providers, you don't have any problems.

Maybe you could cite one government document that states that the use of cryptocurrencies is not backed by the law.