The most common way to buy crypto in Nigeria is to fund an SEC-licensed exchange such as Luno or Quidax with an NGN bank transfer and buy USDT or BTC, because bank-transfer fees are percentage-based and capped while P2P carries a wider spread plus EFCC freeze risk. The tax fact every buyer must know is that under the Nigeria Revenue Service virtual-asset circular of 31 July 2026, 1% withholding tax is deducted from the gross proceeds of every crypto disposal — profitable or not — alongside 1.5% stamp duty on token conversions, with stablecoins exempt from that withholding.
Legal status
Legal. ISA 2025 (signed March 2025) classifies virtual assets as securities under the SEC. Banks were barred from crypto 2017–2023; the CBN lifted the banking ban in December 2023 for licensed VASPs.
Exchanges you can use
| Exchange | Type | License | Notes |
|---|---|---|---|
| Luno | regional | SEC-licensed | direct NGN deposit/withdrawal, safest route |
| Quidax | regional | SEC-licensed | 30% affiliate rev-share, P2P pulled |
| Yellow Card | regional | Africa on-ramp | 20% recurring affiliate |
| Binance | major | unlicensed (NGN pairs suspended) | P2P NGN suspended since Feb 2025 |
KYC requirements
BVN + government ID (NIN slip, driver’s licence, or passport) + selfie
Mandatory under ISA 2025 §357; SEC Digital Asset Rules in force since 30 Jun 2025.
Payment rails
- Bank transfer (NGN) — 2% capped at ₦1,000 (Onramp.money) · SEC-licensed exchanges only
- P2P — 1.5–3% spread · EFCC scrutiny; use licensed venues
Stablecoins — which one works here
- USDT: Dominant — the "dollar of Nigeria"
- USDC: Available
cNGN (NGN-pegged) exists. Stablecoins are ~40% of Africa’s crypto volume, and ~85% of Nigeria’s stablecoin volume is sub-$1M transactions (Chainalysis 2024).
Tax
Income tax on gains (0–25% individuals, 30% companies) + 1% withholding on disposals + 1.5% stamp duty on token conversions
NRS Guidelines (Circular 2026/21, 31 Jul 2026): 1% WHT on gross disposal proceeds, 1.5% stamp duty on token-to-fiat/fiat-to-token, stablecoins exempt from WHT. ₦800,000 annual exemption for individuals.
Bank account risk
EFCC freezes accounts linked to unlicensed P2P. Cash withdrawals from crypto accounts are banned (electronic only). Use SEC-licensed exchanges (Luno, Quidax) to avoid freezes.
How to cash out
- Luno — exchange spread · direct NGN bank withdrawal
- Breet — ~1.7% for $500 · USDT→NGN, ~250K users
- Bybit P2P — 1.5–3% spread · OPay settlement
Security
Beware P2P scams, fake "naira devaluation" schemes, and account freezes from unlicensed platforms.
How to buy — step by step
- Pick an SEC-licensed exchange (Luno or Quidax).
- Register and complete KYC (BVN + government ID + selfie).
- Deposit NGN via bank transfer.
- Buy USDT or BTC on the order book.
- Withdraw crypto to a self-custody wallet (or cash out to NGN).
Records to keep
- Transaction history (date, asset, NGN value, fee)
- Bank transfer receipts
- Tax records for Nigeria Tax Act 2025 reporting
FAQ
Is crypto legal in Nigeria?
Yes. ISA 2025 recognises virtual assets as securities under the SEC; trading is legal through SEC-licensed platforms.
What do I need for KYC in Nigeria?
BVN plus a government ID (NIN slip, driver’s licence, or passport) and a selfie — mandatory under ISA 2025.
Which stablecoin works in Nigeria?
USDT is dominant; USDC is also available. cNGN is the naira-pegged option.
Why would my bank freeze my account?
Accounts receiving funds from unlicensed P2P trades are the main freeze risk. Use SEC-licensed exchanges and keep records.
How fast are naira deposits and withdrawals, and what do they cost?
On Luno, an NGN bank-transfer deposit costs a 2% payment-provider fee capped at ₦1,200 excluding VAT (minimum ₦100, maximum ₦50 million per transfer) and credits in about 30 minutes, while a naira withdrawal costs 2% capped at ₦2,000 below ₦5 million or ₦3,000 above it and takes 6–12 hours to reach your bank. Quidax uses flat pricing instead: ₦200 per naira withdrawal, plus the ₦50 government stamp duty on amounts of ₦10,000 and above.
Do I still owe tax if my crypto trade made no profit?
Yes — under NRS Information Circular 2026/21 of 31 July 2026, 1% withholding tax is deducted from the gross disposal proceeds rather than the gain (recoverable as a credit at filing), and 1.5% stamp duty is charged on token conversions regardless of profit or loss, so a break-even trader still pays duty on every trade. Stablecoins are exempt from the 1% withholding, the first ₦800,000 of an individual’s annual virtual-asset gains is exempt from income tax, and crypto losses can be offset against crypto gains and carried forward indefinitely.
Can I use crypto to send money to Nigeria instead of a remittance operator?
Since 1 May 2026 the CBN requires every licensed international money transfer operator (IMTO) to pay beneficiaries in naira only, routed through naira settlement accounts held with authorised dealer banks at the prevailing NFEM rate, under its circular of 24 March 2026. Crypto transfers are not IMTO transactions — virtual-asset activity is regulated by the SEC — so a recipient receiving stablecoins still has to off-ramp through a licensed exchange to obtain naira.
Sources: https://www.sec.gov.ng/ (SEC) + CBN guidelines · Last reviewed 2026-09-14