Is Crypto Really Legal in Nigeria? The Regulatory Confusion Explained

Nigeria legalized crypto in 2024—but conflicting actions by banks and regulators keep the ecosystem stuck in legal uncertainty.

Crypto Is Legal in Nigeria—But Only on Paper
Nigeria’s 2024 Investment and Securities Act (ISA) gave the Securities and Exchange Commission (SEC) clear authority over digital assets, signaling a shift toward crypto legitimacy. But in reality, users still face account freezes, arrests, and bank restrictions.

The issue? Regulatory dissonance.
In 2021, the Central Bank of Nigeria (CBN) banned banks from facilitating crypto transactions. Though this ban was quietly lifted in 2023, no clear guidance followed. Banks remain cautious. Some fintechs still display warnings against crypto-linked accounts, and users continue reporting freezes or interrogations.

A CBN staff member, speaking anonymously, noted:
“Implementation is different from signing something into law.”

What the New Law Actually Says
According to the ISA 2024:

1. Requires crypto firms to register with the SEC.
2. Lets the SEC classify digital assets as securities, enabling oversight.
3. Leaves banking policy under the CBN’s control—so banks can still restrict crypto activities.

This split oversight creates a legal limbo: the law allows crypto, but practice punishes its use.

South Africa: A Clearer Model
In contrast, South Africa classified crypto as a financial product in 2022. By 2024, over 248 licensed firms operated under its framework. The result? Predictable rules and greater business confidence—drawing companies away from Nigeria.

What Must Happen Next
1. Regulatory Alignment
The CBN and SEC must issue a joint framework. Mixed messages create risk and deter innovation.

2. Clear Communication
Both regulators and industry leaders must educate the public. Lack of clarity isn’t just inconvenient—it’s dangerous.

3. Consistent Enforcement
Laws must be upheld in practice. No one should fear arrest for participating in a legal sector.

So, Is Crypto Legal in Nigeria?
Legally, yes.
Practically, it depends on your bank.

Until the CBN and SEC align, crypto in Nigeria will remain trapped in a regulatory gray zone.