For years, one big question has been hanging in the minds of Nigerian crypto investors: “Is crypto even legal here?” Even now in 2025, the question lingers more, and reports have it that some traders have placed trading their digital assets on hold till certainty is attained.
If you happen to be among these investors seeking clarity on the CBN’s final stance on crypto legality today, this post is for you.
Let’s break it down together.
Between CBN restrictions, confusing policies, and the endless rumors on social media, it hasn’t been easy to know what is really happening. However, as of 2025, there have been key updates, and if you’re buying, selling, or trading crypto in Nigeria, you need to know exactly where things stand.
The Backstory: Why CBN Restricted Banks from Crypto
Back in February 2021, the Central Bank of Nigeria (CBN) shook the entire crypto community by directing banks to cut ties with any accounts linked to cryptocurrency.
This decision was made, not only to prevent the ‘already-depreciating-naira’ value from depreciating further as a result of foreign exchange rates, but also to protect the financial system from fraud, scams, and money laundering. This didn’t mean Nigerians couldn’t own or trade crypto, though. It just meant banks were not allowed to process crypto-related transactions. That’s why most exchanges switched to peer-to-peer (P2P) trading, where you connect directly with another buyer or seller to complete your transaction.
So, while crypto wasn’t exactly illegal, it was stuck in a gray area (allowed, but heavily restricted).
However, things started to change in December 2023, when the CBN eased parts of the ban. Banks were now allowed to open special accounts for licensed crypto companies (known as Virtual Asset Service Providers or VASPs). In simple terms, this meant that if a crypto platform had approval from the Securities and Exchange Commission (SEC), banks could work with them for payments, settlements, and transactions. Regardless, banks themselves still couldn’t trade or hold crypto directly.
2025 Update: Where Does Nigeria Stand Now?
What this means for the 2025 Investor is:
- You can legally own and trade crypto in Nigeria.
- Licensed crypto exchanges now have clearer rules to follow.
- Banks still won’t process direct “Crypto-to-naira” payments, but they can support companies that operate within CBN’s framework.
So, is crypto legal in Nigeria? Yes, but it’s heavily regulated. The days of “crypto is banned” are officially over. And this means that investors can trade freely now, but only under guided rules and regulations.
What This Means for You as a Nigerian Investor
Here’s the sweet part: the changes give you more confidence and safety when buying or selling crypto. Scams may never fully disappear, but with regulated exchanges in the mix, you have stronger protection.
However, you still need to be careful:
- Stick to registered platforms approved by CBN/SEC, like Bitoshi.
- Avoid random Telegram or WhatsApp “investment groups.”
- Always double-check fees and security measures before trading.
Think of crypto like driving in Lagos. The roads are open, but you still need to follow traffic rules if you don’t want FRSC troubles.
The Bigger Picture: Nigeria and Crypto Adoption
Nigeria remains one of the top countries in Africa for crypto adoption. From remittances to side hustles, many people rely on crypto to beat inflation and dodge high transfer fees.
With the government slowly warming up and more banks creating pathways for digital assets, 2025 could be the start of more mainstream adoption. Who knows? In a few years, we might even see crypto taxes, official policies for businesses, or more Nigerian-owned exchanges going global.
Should You Still Be Worried?
The truth is, crypto in Nigeria is no longer in the shadows. It’s legal, it’s regulated (to an extent), and it’s here to stay.
As an investor, your job is to stay informed, trade smart, and always do your due diligence. Whether you’re holding Bitcoin, exploring stablecoins, or just testing the waters, the Nigerian crypto space in 2025 is much safer than it was a few years ago.
So, is crypto legal in Nigeria? Yes. The law is on your side, but so are the risks.
Trade wisely and always with a licensed, secure platform like Bitoshi. Fund your account, trade, pay bills, buy airtime, send money, or even earn by referring a friend. It’s safe, simple, and built for Nigerians who want real value from their digital assets.
