[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.

[OsaiEmma]

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.

Yes no doubt about it, and besides, Bitcoin wasn't initially made to be a financial instrument in the sense of, being a hedge, having a store of value, replacing fiat, e.t.c, it was meant to be a medium for financial transaction, separate from the bank's and government's influence, but because of its potential,it became all these, so it is not strange to see that people, most especially those that are not well informed only sees and uses it as security assets, or a means to make profit.

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.

Exactly my point too, although they can't physically ban it, but they made it difficult to be used in Nigeria, by not processing related payments, and we really need the bank for this, but the loophole on P2P made it's usage possible.

[Biirakedee]

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.

I think there is some confusion here o, crypto itself like bitcoin is not illegal in Nigeria o, what d government restricted in the past was the use of banks to process crypto transactions not by owning or trading crypto and that’s why people still trade using p2p and other methods too. Being hidden is not because it’s illegal, it’s for safety concerns. There is a big difference between not fully regulated and illegal o. That’s why many users are careful not because they are breaking any law but because the system is still evolving, so no crypto is banned, it’s not just fully embraced yet.

[ArabBTC]

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.

This isn’t true, currently i don’t think there is a ban on cryptocurrency in Nigeria the only thing is that the government pays keen interest on its activities and usage, the reason is Nigeria government finds it difficult to track and task its usage and users, hence, the government remains skeptical about it, secondly some people uses cryptocurrency for some fraudulent activities too at times because it is difficult to track that is why the Nigerian government still finds it a bit difficult to complete embrace cryptocurrency, currently there is still this mentality in Nigeria, immediately you mention cryptocurrency some people immediately feel it is fraud because some people that lacked knowledge about how crypto trading works in the past ended up losing huge amounts while trying to invest in it, so most of them naturally see it as a fraudulent scheme.

Not completely embracing cryptocurrency doesn’t mean that there is a ban on it, Africa as a whole finds it difficult to accept a new trend, i believe that in time our government will get to understand cryptocurrency more and soon people will have more enlightenment about cryptocurrency and it’s acceptance in Nigeria will increase, the way Nigerians are looking at cryptocurrency is same way they were skeptical about this mini banks like opay, palmpay etc, Nigerians felt that once you use such banks that your money will be lost but with the CBN rules there is now continued patronage on this mini banks you can observe that there is now so much of awareness and more people now accept and use mini banks like opay etc, so let’s just relax, some things will just normalize in time, soon the awareness about cryptocurrency will fully increase and more people including the government will naturally embrace it.

[Jubilee58]

In the past the federal government of Nigeria was not fully in support of cryptocurrency transactions and in investment in Nigeria, even though many Nigerians are fully involved in bitcoin and altcoins investing, the activities of the federal government of Nigeria and CBN were all barriers which even discouraged many Nigerians as the actions of the federal government made some Nigeria investors to loose their investment.
Several times their policies disallowed banks from having link to cryptocurrency related businesses and transactions and some time ago, one of the largest cryptocurrency exchanges in Nigeria Binance was affected, stopping Nigerians from engaging in P2P transactions. But today, there seem to a change of decision, they are now seeing the need to support bitcoin and other cryptocurrency transactions more especially as Bitcoin is gaining wide spread adoption.

Just of recent, the federal government of Nigeria is now trying to resolve the matter against binance out of court, and all these move is a sign that they are welcoming cryptocurrency investing, more especially Bitcoin.

Here is the info:https://www.beloud.com/news/130814386