Can Businesses in Nigeria Accept Crypto Legally in 2025?
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Important Note: According to Nigeria's 2025 regulations, only licensed VASPs can handle cryptocurrency transactions. Accepting crypto directly without proper licensing can result in fines up to ₦5 million and account freezes.
Can a business in Nigeria legally accept Bitcoin, Ethereum, or USDT as payment? The short answer is: not directly-but there’s a legal workaround that thousands are using. If you’re running a shop, e-commerce store, or service business and want to take crypto from customers, you need to understand exactly how Nigeria’s 2025 rules work. It’s not a ban. It’s not a free-for-all. It’s a tightly controlled system that favors investment over everyday payments.
What Changed in 2025?
Before March 2025, businesses in Nigeria were stuck in a gray zone. The Central Bank of Nigeria (CBN) had banned banks from handling crypto transactions in 2021, forcing merchants to rely on risky peer-to-peer deals. Many used WhatsApp or Telegram to receive crypto, then cashed out through unregulated exchanges. It worked-but it was risky. Customers got scammed. Businesses got frozen accounts. The SEC didn’t have authority over crypto, so there was no clear path to compliance. Everything changed on March 29, 2025, when President Tinubu signed the Investments and Securities Act (ISA) 2025. This law didn’t legalize crypto as money. Instead, it classified digital assets as securities. That means Bitcoin and Ethereum are now treated like stocks or bonds-not like Naira or dollars. The Securities and Exchange Commission (SEC) became the main regulator, not the CBN. This shift had a big effect: businesses can’t accept crypto as payment for goods or services unless they’re licensed as a Virtual Asset Service Provider (VASP), Digital Asset Operator (DOP), or Digital Asset Exchange (DAE). The law doesn’t stop you from receiving crypto. It just says you can’t treat it like cash. You must convert it to Naira through an approved channel before you can use it.Who Can Legally Accept Crypto Payments?
Only three types of businesses can legally handle crypto transactions in Nigeria:- Registered VASPs-Companies that custody, trade, or transfer crypto on behalf of others. Examples: Quidax, Bybit Nigeria, Binance Nigeria.
- Digital Asset Operators (DOPs)-Firms that issue or manage digital assets, like tokenized real estate or securities.
- Digital Asset Exchanges (DAEs)-Platforms that match buyers and sellers of crypto.
How Do Businesses Actually Accept Crypto Now?
Most Nigerian businesses that want to take crypto use a middleman: a licensed VASP. Here’s how it works:- A customer pays you in USDT or BTC via a wallet address you display on your website.
- The payment goes to a VASP platform like Quidax or Bybit Nigeria, which holds it temporarily.
- The VASP instantly converts the crypto to Naira at the current market rate.
- The Naira is deposited into your bank account within minutes.
Why Isn’t Crypto Legal Tender in Nigeria?
Nigeria’s Central Bank Act of 2007 says only the Naira is legal tender. That hasn’t changed. The ISA 2025 didn’t override this. The CBN and SEC both agree: crypto is not money. It’s an asset. This distinction matters because it affects everything from taxation to banking. If crypto were legal tender, businesses would have to accept it at face value, just like Naira. You couldn’t refuse a Bitcoin payment. But under current rules, you can say no. You can demand Naira. You can even charge extra for crypto payments because you’re not obligated to accept it. The government’s reasoning? Stability. In 2024, Nigeria had over $1.2 billion in monthly peer-to-peer crypto trades. Many were used to bypass currency controls or send remittances. But fraud was rampant. Scams, pump-and-dump schemes, and money laundering were common. By treating crypto as a security, the SEC can enforce strict KYC, track transactions, and shut down bad actors. In Q2 2025, crypto scams dropped 63% compared to Q4 2024, according to SEC data.What About Big Companies? Do They Accept Crypto?
Yes-but only in limited ways. MTN and Airtel use licensed VASPs to settle international supplier invoices in crypto. They convert it to Naira immediately. They don’t let customers pay with Bitcoin for airtime or data bundles. Some multinational corporations with Nigerian offices accept crypto for global contracts, but again, only through approved VASPs. They don’t display a “Pay with Crypto” button on their Nigerian websites. The system is designed for institutional use, not consumer-facing transactions. Even fintech giants like Opay and PalmPay have entered the space-not by letting users pay with crypto, but by partnering with VASPs to offer crypto-to-Naira conversion as a feature inside their apps. It’s a service, not a payment method.What Happens If You Accept Crypto Directly?
If you’re a small business owner and you set up a Bitcoin wallet on your website to receive payments directly, you’re breaking the law. The SEC doesn’t need to prove you’re laundering money. Just accepting crypto without being a licensed VASP is enough to trigger enforcement. In January 2025, the SEC sent warning letters to 147 Nigerian e-commerce stores that were accepting crypto directly. Most shut down. One seller on Jumia was fined ₦5 million and had their account suspended for 90 days. The SEC doesn’t always go to court. Often, they just cut off access to banking services. If your bank finds out you’re receiving crypto, they may freeze your account-no notice, no appeal. Even if you think you’re safe because you convert crypto immediately, the law doesn’t care. The act of receiving it is the violation. The conversion doesn’t make it legal.
What Are the Alternatives?
If you can’t accept crypto directly, here are your options:- Use a licensed VASP-The safest route. Choose Quidax, Bybit Nigeria, or Binance Nigeria. They handle compliance, conversion, and reporting. You just get Naira.
- Accept Naira only-Stick with bank transfers, USSD, or card payments. It’s simpler and cheaper.
- Wait for regulatory changes-The SEC announced a review in September 2025. A new category called “Digital Payment Vehicle” might be created by 2027, with lower capital requirements (possibly ₦50 million). That could open the door for small businesses.
- Use the eNaira-The Central Bank’s digital currency launched in October 2025. It’s legal tender, backed by the government, and can be accepted like cash. No fees. No conversion. No VASP needed.
garrett goggin
So let me get this straight-Nigeria turned Bitcoin into a stock certificate so they can pretend they’re regulating it while everyone still uses WhatsApp to send crypto like it’s 2017. Brilliant. The SEC is basically the bouncer at a club that lets you in but won’t let you drink. And the 8% fee? That’s not a tax, that’s a robbery with paperwork.
Teresa Duffy
Honestly this makes so much sense. The eNaira is the real win here-no middlemen, no fees, just digital cash backed by the government. Why fight the system when you can use the one that’s already legal and free?
Carol Wyss
I get why small businesses are stuck. That ₦500 million requirement is absurd for a street vendor or a Etsy shop. But the VASP workaround? It’s clunky but it works. I wish more people knew about it instead of risking their bank accounts.
jesani amit
Bro i been using Quidax for my online design gigs and honestly its a lifesaver. Customer pays in USDT, i get naira in 3 mins. Fees hurt but at least i dont get my account frozen. Last month i had a guy from Germany pay me 0.5 BTC for a logo and i was laughing the whole time cause i got like 280k naira instantly. No stress, no drama. Just work and get paid.
Jay Davies
The article is accurate but misses one key point: the CBN’s 2021 ban was never lifted-it was just circumvented by reclassifying crypto as a security. That’s not regulation, that’s legal sleight of hand. The SEC doesn’t have jurisdiction over payments, yet they’re acting like they do. This is regulatory arbitrage dressed as policy.
Ninad Mulay
I’ve been in Lagos for 10 years and seen this whole crypto wave from the ground up. The VASP model is the only thing keeping small businesses alive. Sure, it’s expensive, but imagine if you had to deal with 30% inflation and no bank account. You’d take 3% fees and be grateful. This isn’t perfect-but it’s the least broken option.
Nathan Ross
The distinction between legal tender and asset is critical. In the U.S., we treat Bitcoin as property for tax purposes-similar logic here. Nigeria’s approach is actually more coherent than most emerging markets. The problem isn’t the law-it’s the lack of public education. Most merchants think they’re ‘accepting crypto’ when they’re really just using a payment processor.
Nataly Soares da Mota
This is a textbook case of institutional capture. The SEC, having been granted authority over digital assets, now has a vested interest in maintaining the status quo: high barriers to entry, centralized control, and institutional dominance. The ‘Digital Payment Vehicle’ proposal is likely a performative concession-designed to appease grassroots demand while preserving the oligopoly of VASPs. Innovation is being strangled by compliance theater.