Can Businesses in Nigeria Accept Crypto Legally in 2025?

Can a business in Nigeria legally accept Bitcoin, Ethereum, or USDT as payment for goods or services? The short answer is: not directly - but there’s a legal workaround that’s reshaping how companies handle crypto payments.

In 2025, Nigeria’s crypto landscape changed dramatically. The Investments and Securities Act (ISA) 2025, signed into law on March 29, 2025, didn’t ban cryptocurrency. Instead, it reclassified it. Crypto is no longer treated as money. It’s now classified as a security - meaning it falls under the oversight of the Securities and Exchange Commission (SEC), not the Central Bank of Nigeria (CBN). This shift was meant to protect investors, but it created a major roadblock for businesses wanting to use crypto like cash.

Here’s the key point: the Naira is still the only legal tender in Nigeria. That means by law, you can’t accept Bitcoin as payment the same way you accept cash or bank transfers. If you’re a shop owner, restaurant, or e-commerce seller and you try to take USDT directly from a customer, you’re breaking the law - even if the customer is willing and the transaction is legitimate.

Who Can Legally Accept Crypto in Nigeria?

Only businesses registered with the SEC as Virtual Asset Service Providers (VASPs), Digital Asset Operators (DOPs), or Digital Asset Exchanges (DAEs) can legally handle crypto transactions. These are not regular stores or service providers. They’re licensed platforms like Quidax, Bybit Nigeria, and Binance Nigeria - companies that act as intermediaries between crypto users and the traditional financial system.

To become a VASP, a business must meet strict requirements:

• Minimum capital of ₦500 million (about $350,000 USD)
• 24/7 transaction monitoring systems
• ISO/IEC 27001-certified cybersecurity protocols
• Full AML/CFT compliance with the Nigerian Financial Intelligence Unit (NFIU)
• 145+ days of application processing with a 63% rejection rate

These rules were designed to stop fraud and money laundering. And they’ve worked - SEC data shows crypto scams dropped 63% in Q2 2025 compared to late 2024. But for small businesses, these barriers are impossible to clear. The cost, complexity, and time involved make it unfeasible for anyone without serious funding or legal teams.

How Do Businesses Actually Accept Crypto Then?

If you can’t accept crypto directly, how do Nigerian businesses use it at all? The answer is: through licensed VASPs as payment processors.

Here’s how it works in practice:

1. A customer pays you in USDT or BTC via a QR code or wallet address.
2. The payment goes to a VASP platform you’ve partnered with - like Quidax or BitFinance.
3. The VASP instantly converts the crypto into Naira.
4. The Naira is deposited into your bank account.

This setup is legal because the business never holds or manages crypto. The VASP handles everything - custody, conversion, compliance. You, as the merchant, only ever receive Naira. You’re not accepting crypto as payment; you’re accepting Naira that was generated from crypto.

But there’s a catch. These services charge fees - usually between 1.5% and 3.5% per transaction. For a small business selling low-margin goods, that eats into profits fast. One Jumia vendor told X (formerly Twitter) in September 2025: “I had to turn away international customers who wanted to pay in USDT. I had to convert it to Naira first, and the extra steps and fees made it not worth it.”

What Happened to Direct Crypto Payments?

Before the ISA 2025, many Nigerian businesses accepted crypto directly. E-commerce stores, freelancers, and even some brick-and-mortar shops took Bitcoin as payment. In 2024, Nigeria was the second-largest crypto market in the world by peer-to-peer volume, with over $1.2 billion in monthly transactions.

But after the new law, merchant adoption collapsed. According to Breet.io’s August 2025 survey of 500 Nigerian merchants:

• 78% tried accepting crypto before 2025
• Only 11% still do - and all of them use VASP intermediaries
• 89% said SEC registration complexity was the main reason they stopped
• 76% cited high compliance costs

Businesses that tried to go it alone got warning letters from the SEC. One Lagos-based e-commerce owner, who asked to remain anonymous, said: “We got a notice in January 2025 saying we were operating illegally. We shut down our crypto option immediately. We didn’t have the money to register as a VASP.”

How Does Nigeria Compare to Other African Countries?

Nigeria’s approach is unique in Africa.

• South Africa: Allows businesses to accept crypto as direct payment under its Financial Sector Regulation Act. No need for intermediaries.
• Kenya: Still bans crypto as payment for goods and services entirely.
• Ghana: Allows limited acceptance through a regulatory sandbox, but only for pilot programs.

Nigeria’s model is the strictest in terms of merchant access. A June 2025 report by the African Fintech Network gave Nigeria a 7.2/10 for investor protection but only 4.8/10 for merchant friendliness. The report concluded: “Classifying crypto as a security instead of a payment tool adds unnecessary friction for everyday commerce.”

What’s Next? Is the Law Changing?

There are signs the government is listening. On September 18, 2025, the SEC announced a six-month review of the merchant acceptance rules. Director General Emomotimi Agama admitted the framework may be “too rigid for small businesses.”

Proposed changes under discussion include:

• A new category called “Digital Payment Vehicle” for merchant use
• Lower capital requirements - possibly ₦50 million instead of ₦500 million
• Simplified AML procedures for small merchants
• Faster licensing with a dedicated crypto help desk (launched in July 2025)

At the same time, the Central Bank of Nigeria launched its own digital currency, the eNaira, in October 2025. It already has over 1.2 million users in its first week. Many analysts believe the eNaira is meant to replace the need for private crypto in everyday payments - not to complement it.

For now, the message is clear: if you’re a business in Nigeria and you want to accept crypto, you can’t do it alone. You need a licensed partner. And even then, you’re paying a price - in fees, control, and convenience.

What Should a Business Do Right Now?

If you’re a Nigerian business owner thinking about crypto:

1. Don’t accept crypto directly - it’s illegal and risky.
2. Partner with a licensed VASP like Quidax, Bybit Nigeria, or BitFinance. These platforms are SEC-approved and handle compliance for you.
3. Calculate the real cost - include the 1.5-3.5% fee, any integration costs, and the time spent managing the system.
4. Target international customers - they’re more likely to pay in crypto, and you’re less likely to face pushback from local regulators.
5. Stay updated - the SEC’s review could lead to changes by mid-2026. Subscribe to SEC announcements or follow licensed VASPs for updates.

For now, crypto in Nigeria is a tool for investment and remittances - not for buying bread or paying for a haircut. But if you’re smart about how you use it, you can still benefit from the growing crypto economy - without breaking the law.