Nigeria regulates virtual asset service providers through the SEC under the Investments and Securities Act 2025, which recognises digital assets as securities, together with SEC rules on digital asset issuance and service providers. Crypto gains became expressly taxable under the Nigeria Tax Act 2025 from 1 January 2026.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | africa west |
| Currency | NGN |
| Capital Gains (Personal) | Taxed as income at progressive PIT rates up to 25% under the Nigeria Tax Act 2025 (effective 1 January 2026) |
| Capital Gains (Corporate) | 30% CIT for large companies; small companies 0% |
| VAT on Crypto | No |
Under the Nigeria Tax Act 2025, effective 1 January 2026, profits and gains from digital and virtual assets are taxable for individuals at progressive rates up to 25% and for companies at 30% (small companies exempt). Losses on digital asset transactions can only offset gains from similar transactions. Virtual asset service providers must register for tax under the Nigeria Tax Administration Act 2025.
| Required | Yes |
| Regulator | SEC Nigeria |
| Framework | Investments and Securities Act (ISA) 2025 |
| Ease | medium |
Licensing is required under the ISA 2025 and SEC Rules on Digital Assets, with a formal application process through the SEC Nigeria.
Enforcement focused on unlicensed operators and consumer protection
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the regulatory scope of the SEC Nigeria and must comply with existing digital asset regulations.
Status: regulated
Stablecoins are regulated under the SEC Rules on Digital Assets and must meet licensing and compliance requirements.
Status: no_rules
No specific NFT regulation
| Legal | Yes |
| Electricity Cost | $0.15/kWh |
| Renewable Energy | 15% |
| Infrastructure | fair |
Mining is legal but faces challenges due to relatively high electricity costs and limited renewable energy penetration.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 25/100 |
| Banking Access | moderate |
| Sanctions Program Active | Yes |
Risk Factors
Nigeria has moderate political stability with ongoing reforms to improve the business environment. Corruption and infrastructure challenges remain key risks for crypto businesses.
Recent Political Events
Nigeria regulates virtual asset service providers through the SEC under the Investments and Securities Act 2025, which recognises digital assets as securities, together with SEC rules on digital asset issuance and service providers. Crypto gains became expressly taxable under the Nigeria Tax Act 2025 from 1 January 2026.
Lagos is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-30 · Data source: Soken Crypto Legal Map
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