Crypto Nigeria, Lagos city
Lagos, Nigeria. Photo: Nupo Deyon Daniel

Crypto Nigeria: From Ban to Boom

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Nigeria has emerged as Africa's crypto powerhouse. The West African nation ranks second globally for cryptocurrency adoption. Between July 2023 and June 2024, Nigeria processed approximately $59 billion in crypto transactions. This remarkable journey transformed a banned industry into a regulated financial sector.

Early History: The Foundation Years (2015-2017)

Nigeria’s cryptocurrency movement began gaining momentum in 2015. Early adoption was partly driven by Ponzi schemes like MMM. However, these schemes introduced millions of Nigerians to Bitcoin. Between 2015 and 2020, Nigerians traded roughly $566 million worth of Bitcoin on platforms like LocalBitcoins and Paxful.

LocalBitcoins in Nigeria ranked second globally in P2P trading volume. By 2016, the Bitcoin market reached a capital value of around $1 billion. Nigeria became the second-largest market for peer-to-peer Bitcoin trading worldwide.

The Central Bank of Nigeria issued its first warning in 2017. Commercial banks were cautioned against facilitating cryptocurrency transactions. This marked the beginning of official resistance.

The Great Ban (2021)

In February 2021, the CBN issued a directive. Banks and financial institutions were prohibited from dealing with cryptocurrency exchanges. The move effectively severed links between Nigeria’s formal banking system and its crypto economy.

The CBN cited several concerns:

  • Money laundering risks
  • Terrorism financing
  • Market volatility
  • Capital flight

Rather than stopping crypto activity, the ban drove adoption underground. Nigerians shifted to P2P platforms. Trading continued using bank transfers or cash. Crypto trading volume remained resilient and even grew.

Nigeria Crypto adoption, ban and boom, men

Why Nigerians Embraced Crypto

Several factors drove Nigeria’s crypto adoption:

Inflation and Currency Devaluation

Inflation surged to over 24 percent in 2023. Since 2016, the naira lost more than three-quarters of its value. Nigerians sought to preserve savings by holding stablecoins and Bitcoin.

Financial Exclusion

About 36 percent of Nigerian adults remain unbanked. Traditional banking infrastructure is unevenly distributed. Crypto offers an alternative financial system.

Remittances

More than $20 billion in remittances flowed into Nigeria in 2022. Traditional banking fees can reach 8 percent per transaction. Crypto exchanges typically charge a fraction of this amount.

Youth and Tech

Over 62 percent of Nigerians are aged 24 or under. This digitally native population eagerly embraced crypto. They bypassed slow and costly traditional banking.

Adoption Statistics: A Nation Goes Digital

The numbers tell a remarkable story:

  • By 2025: Around 22 million Nigerians (10.3% of population) hold cryptocurrencies
  • Awareness: 99% of Nigerians know about cryptocurrencies
  • Ownership: 46% owned cryptocurrency in 2023
  • Future Intent: 90% would probably or definitely buy crypto
  • Gender Parity: 50-50 split between men and women investors
  • Bitcoin Dominance: 76% adoption rate among Nigerian crypto investors
  • Global Ranking: First in P2P transactions, second overall for crypto adoption

Between July 2023 and June 2024, Nigeria processed $59 billion in crypto transactions. A huge 85% of these were valued under $1 million. This signals strong retail participation.

Stablecoins play a critical role. They accounted for 43% of sub-$1 million transactions. Nigerians use them to hedge against naira instability.

The Government’s Changing Stance

The eNaira Launch (2021)

On October 25, 2021, Nigeria launched the eNaira. It was Africa’s first central bank digital currency (CBDC). President Muhammadu Buhari said it could add $29 billion to GDP over 10 years.
The CBN minted 500 million eNaira initially. The goals were ambitious:

  • Boost financial inclusion
  • Enhance cross-border payments
  • Simplify diaspora remittances
  • Supplement payment infrastructure

However, adoption struggled. By mid-2023, only 13 million wallets were created. Many users found little advantage over existing banking apps. Trust in government financial institutions remained low.

By February 2025, eNaira in circulation reached N18.31 billion. This represented just 0.37% of total currency in circulation. Cash made up 99.63% of currency.

The CBN governor announced plans in 2025. A comprehensive review would identify barriers to adoption. The focus would be on trust, usability, and acceptance.

The Regulatory Pivot (2023-2025)

December 2023 marked a turning point. The CBN lifted the ban on crypto transactions. New guidelines allowed banks to open accounts for licensed firms.

Investment and Securities Act 2025

In March 2025, President Bola Tinubu signed the ISA 2025 into law. This was a watershed moment. Cryptocurrencies were formally recognized as securities.

Key provisions include:

  • Digital assets classified as securities
  • Virtual Asset Service Providers (VASPs) under SEC oversight
  • Digital Asset Exchanges require registration and licensing
  • Stricter penalties for Ponzi schemes
  • Comprehensive investor protection measures

The Act grants the SEC regulatory authority over:

  • Crypto exchanges
  • Digital asset operators
  • Virtual asset service providers
  • Digital asset custodians

Companies must comply with:

  • Anti-money laundering (AML) standards
  • Know Your Customer (KYC) requirements
  • Consumer protection measures
  • Transaction monitoring

Taxation Framework

The ISA 2025 also introduced taxation. Crypto is now subject to tax as securities. Taxable events include:

  • Selling and trading crypto
  • Receiving crypto as payment
  • Mining and staking
  • Airdrops and hard forks

The Tax Administration Acts 2025 introduced 25% capital gains tax on individuals. A 7.5% VAT applies to transaction fees on platforms.

Licensed Exchanges: The New Era

Accelerated Regulatory Incubation Program (ARIP)

In June 2024, the SEC launched the ARIP. This sandbox-like environment allows crypto startups to obtain provisional licenses. Companies pay ₦200,000 for assessments. An additional ₦2 million covers processing fees.

First Licensed Exchanges

In August 2024, the SEC granted provisional licenses to two exchanges:

Quidax

Founded in 2018, Quidax became Nigeria’s first SEC-licensed exchange. Co-founder and CEO Buchi Okoro called it historic. The license enables better collaboration with banks and financial institutions.

Busha

Busha received its provisional license simultaneously. The platform focuses on beginner-friendly services. It offers direct naira deposits and withdrawals.

Both exchanges have reconnected to the formal banking system. Moyo Sodipo, Busha’s COO, confirmed the development. Banking institutions now welcome crypto exchanges again.

Other Licensed Entities

The SEC also admitted companies to the Regulatory Incubation Program:

  • Trovotech Ltd
  • Wrapped CBDC Ltd
  • Dream City Capital
  • HousingExhange.NG Ltd
  • Blockvault Custodian

More applications are being assessed. Approvals will be granted as companies meet requirements.

The cNGN Stablecoin

In February 2025, the African Stablecoin Consortium launched cNGN. This is Nigeria’s first regulated stablecoin pegged to the naira. The consortium comprises:

  • Convexity
  • Alpha Geek Technologies
  • Digital Currency Coalition
  • Interstellar

Both Busha and Quidax have listed cNGN. As of March 2025, 121.3 million tokens were in circulation. The stablecoin operates under SEC oversight.

Key Organizations and People

Regulatory Bodies

Securities and Exchange Commission (SEC)
The SEC is the primary regulator for digital assets. Under ISA 2025, it has authority over all crypto operations. Director-General Emomotimi Agama has championed regulatory clarity.

Central Bank of Nigeria (CBN)
The CBN manages monetary policy and financial stability. Governor Olayemi Cardoso has signaled openness to crypto. The bank permits banks to serve licensed VASPs.

Influential Leaders

Dr. Emomotimi Agama
As SEC Director-General since April 2024, Agama drives crypto regulation. He holds a PhD focused on cryptocurrency operations in Nigeria. His leadership emphasizes innovation with investor protection.

Chimezie Chuta
Founder and coordinator of Blockchain Nigeria User Group (BNUG). Since 2017, Chuta has organized conferences, workshops, and advocacy. He chairs the Blockchain Industry Coordinating Committee. Chuta has been instrumental in SEC-industry dialogue.

Buchi Okoro
Co-founder and CEO of Quidax. Okoro led the company through regulatory compliance. He secured Nigeria’s first SEC provisional license.

Moyo Sodipo
Chief Operating Officer of Busha. Sodipo has championed banking access for crypto exchanges. He describes regulatory recognition as transformative.

Key Organizations

Blockchain Nigeria User Group (BNUG)
Founded by Chimezie Chuta in 2017. BNUG organizes Nigeria’s premier blockchain conferences. The annual event series has run for 15 editions. BNUG promotes blockchain technology adoption across Nigeria.

Stakeholders in Blockchain Technology Association of Nigeria (SiBAN)
President Obinna Iwuno leads SiBAN. The association represents blockchain industry interests. SiBAN advocates for favorable regulations.

Fintech Association of Nigeria
Partners with blockchain organizations on conferences. Advocates for fintech and crypto integration.

Blockchain Events and Conferences

Web3 Lagos Conference

The Web3 Lagos Conference is Nigeria’s largest Web3 event. Organized by Web3bridge, it runs as a three-day hybrid experience.

In 2024, the conference attracted over 1,500 attendees. It featured 50+ speakers. Ayodeji Awosika, Chief Mechanic at Web3bridge, delivered the keynote.

The 2025 edition is scheduled for August 28-30. The event combines education with networking. It targets both beginners and blockchain natives.

BNUG Annual Conference

BNUG’s Decentralized Intelligence V-2 Conference took place in October 2024. The event ran October 10-11 at The Civic Center, Victoria Island, Lagos.

The theme explored AI with blockchain and Web3. Minister of Communications, Innovation & Digital Economy Dr. Bosun Tijani attended. NITDA Director-General Dr. Kashifu Inuwa Abdullahi delivered the keynote.

The conference featured the Nigeria Blockchain Industry Awards 2024. It recognized outstanding blockchain projects and individuals.

BusinessDay Blockchain Conference

In September 2024, BusinessDay hosted its inaugural Blockchain Conference. The theme was “Building Africa’s Future: Harnessing Blockchain for Social and Economic Transformation.”

Speakers discussed blockchain beyond crypto. Panels covered business operations, governance, and service delivery. Emphasis was on collaboration between private sector, government, and academia.

Other Notable Events

  • Blockchain Africa Conference: Africa’s longest-running blockchain conference. The 11th edition takes place in South Africa, attracting Nigerian participants.
  • Nigeria Fintech Week: Includes blockchain and crypto discussions alongside fintech topics.
  • Various Academic Conferences: International conferences on blockchain and cryptocurrencies regularly occur in Lagos and Abuja.

Industry Trends

P2P Dominance

Nigeria ranks first globally for P2P cryptocurrency transactions. The P2P market has become an extension of the forex black market. However, it provides financial freedom for millions.

Experts note that outright bans won’t work. People will always find ways around restrictions using technology. Regulation offers a better solution.

Stablecoin Adoption

Stablecoins have surged in popularity. They account for 43% of transactions under $1 million. USDT remains the most popular. Nigerians use stablecoins to:

  • Hedge against inflation
  • Access dollar-denominated savings
  • Facilitate cross-border payments
  • Conduct daily transactions

Business-to-Business (B2B) Services

Crypto exchanges are expanding B2B offerings. Quidax, Yellow Card, and Busha now heavily promote API payment solutions. These allow fintechs to offer crypto payments without regulatory burden.

Benefits include:

  • Easy integration for developers
  • Compliance handled by crypto platforms
  • Stable revenue streams
  • Growing demand from businesses

Challenges Remain

Despite progress, challenges persist:

Telecom Restrictions
In February 2024, the Nigerian Communications Commission blocked major crypto platforms. Binance, Coinbase, OKX, Kraken, and others became inaccessible. The block remains despite legal recognition of crypto.

Banking Hesitancy
Some banks remain cautious about serving crypto companies. The CBN hasn’t provided completely clear guidance. Exchanges sometimes disguise themselves as “investment” companies.

Licensing Delays
Only Quidax and Busha have received provisional licenses. Many applications remain pending. Some operators note ARIP is just a sandbox, not full licensing.

Infrastructure Gaps
Internet penetration stood at 55.4% in 2023. About 36% of adults remain unbanked. These gaps limit crypto accessibility.

Looking Forward

Nigeria stands at a crossroads in its crypto journey. The transformation from ban to regulatory acceptance is remarkable. However, the future depends on several factors:

Regulatory Clarity

The SEC plans to fast-track licensing in 2025. More provisional licenses should be issued. Clear guidelines will help operators and users. Consistency between regulators (SEC, CBN, NCC) is crucial.

Infrastructure Development

Internet access must expand. Banking services need to reach more Nigerians. Mobile money integration with crypto could accelerate adoption. The eNaira requires better marketing and utility.

Innovation and Investment

With legal recognition, foreign investment may increase. Local startups can innovate without legal uncertainty. Blockchain applications beyond finance show promise. Use cases in agriculture, healthcare, and governance are emerging.

Education and Trust

Awareness stands at 99%, but understanding is lower. Educational initiatives must expand. Investor protection mechanisms need strengthening. Building trust after past Ponzi schemes takes time.

Regional Leadership

Nigeria has potential to lead African crypto adoption. With 60% of Africa’s crypto trade volume, Nigeria sets precedents. Other African nations watch Nigeria’s regulatory approach. Success could inspire regional frameworks.

Economic Impact

Projected 2025 crypto revenue: $2.4 billion. This could grow to $2.5 billion by 2026. If properly regulated and taxed, crypto could contribute significantly. Job creation in tech and finance sectors continues.

Global Integration

Nigeria aims to retain IOSCO “Signatory A” status. This credibility matters for global markets. Cross-border payment improvements could boost trade. Remittances from diaspora could become cheaper and faster.

The dream of 40% of Nigerian crypto users is telling. They want to use crypto profits to start businesses. Another 40% aim to improve family living conditions. Crypto represents economic hope for millions.

Nigeria’s crypto story is far from finished. The nation has moved from resistance to recognition. From ban to boom. The next chapter will determine whether Nigeria becomes a global crypto leader or another cautionary tale. Early signs are promising, but execution matters.

For now, 22 million Nigerians hold cryptocurrencies. They’re not waiting for perfect regulations. They’re building, trading, and innovating. That grassroots energy, combined with improving regulations, could make Nigeria’s crypto revolution truly transformative.

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