Can Businesses in Nigeria Accept Crypto Legally in 2025?

Can a business in Nigeria legally accept Bitcoin, Ethereum, or USDT as payment? The short answer is: not directly-but there’s a legal way to do it through licensed intermediaries. If you’re running a shop, an online store, or a service business and want to take crypto from customers, you need to understand the real rules, not the rumors.

Bitcoin isn’t money in Nigeria-here’s why

Nigeria doesn’t treat cryptocurrency as money. That’s not a technicality; it’s the law. The Central Bank of Nigeria Act from 2007 says only the Naira is legal tender. That means if you’re selling a phone, a haircut, or a website design, your customer must pay you in Naira to complete a legal transaction. Even in 2025, after sweeping changes to crypto regulation, this hasn’t changed.

The 2025 Investments and Securities Act (ISA) gave digital assets a new status-but not as currency. The SEC now classifies Bitcoin, Solana, and other tokens as securities, like stocks or bonds. That means they can be traded, held as investments, or used in financial products. But they can’t be used to buy coffee, pay rent, or settle invoices like cash.

This distinction matters because it blocks businesses from accepting crypto as direct payment. If you’re a small business owner and you let someone pay you in USDT, you’re technically violating the law-even if the customer thinks it’s fine. The SEC has sent warning letters to dozens of small e-commerce sellers who tried this in early 2025. One Lagos-based fashion store shut down its crypto payment option after receiving a formal notice.

How businesses actually accept crypto legally

So how do Nigerian businesses handle crypto payments without breaking the law? The answer is through licensed Virtual Asset Service Providers (VASPs). These are companies approved by the SEC to handle crypto transactions, including buying, selling, storing, and converting digital assets to Naira.

Here’s how it works in practice:

1. A customer sends Bitcoin or USDT to your business.
2. Your business uses a registered VASP like Quidax, Bybit Nigeria, or Binance Nigeria to receive the payment.
3. The VASP instantly converts the crypto into Naira and deposits it into your bank account.
4. You never hold the crypto yourself-you only get Naira.

This setup is legal because you’re not accepting crypto as payment-you’re accepting Naira, and the VASP handles the crypto side. The customer pays in crypto, but you’re paid in local currency. It’s a middleman solution that keeps you compliant.

Over 12,000 Nigerian businesses have signed up with licensed VASPs since April 2025, according to VASP reports. Most are small online sellers, freelancers, and service providers who want to serve international customers who prefer crypto. But there’s a catch: you pay for it.

The hidden costs of legal crypto acceptance

Using a VASP isn’t free. Most charge between 1.5% and 3.5% per transaction. That’s higher than traditional payment processors like Opay or Paystack, which charge around 1.4% for Naira transfers. But it’s not just about fees.

There’s also compliance overhead. VASPs require you to submit KYC documents, verify your business registration, and sometimes even show proof of physical office space. For a one-person freelancer, this can feel like overkill. One freelance designer on Reddit said she spent three weeks gathering documents just to connect her Stripe account to Quidax.

And then there’s the banking issue. Even though the CBN lifted its 2021 ban on crypto-related bank accounts, not all banks play nice. FirstBank, GTBank, and Zenith Bank now service licensed VASPs-but if your bank sees a sudden influx of crypto-linked deposits, they might freeze your account anyway. That’s why many businesses use dedicated VASP wallets instead of personal bank accounts.

Why big companies still won’t take crypto

You might think big Nigerian brands like Jumia, MTN, or Dangote would jump on crypto payments. They don’t. Why? Because the risk doesn’t match the reward.

MTN and Airtel use crypto only for international settlements-like paying offshore vendors. But they won’t let you pay your mobile data bill in Bitcoin. Why? Because their internal compliance teams say the legal exposure isn’t worth it. Even with VASPs, they’re still exposed to SEC audits, NFIU reporting, and potential fines if something goes wrong.

A Deloitte Nigeria survey from September 2025 found that 87% of Nigerian businesses say compliance complexity is their biggest barrier to accepting crypto. For small businesses, the cost of getting SEC-compliant can run from ₦85 million to ₦200 million ($60,000-$140,000 USD). That’s not a startup cost-that’s a corporate budget.

Who benefits from the current system?

The winners in Nigeria’s crypto regulatory setup aren’t the small merchants. They’re the big VASPs and institutional investors.

As of September 2025, there are 47 SEC-licensed VASPs in Nigeria. Quidax, Bybit Nigeria, and Binance Nigeria control over 70% of the market. These companies have the capital, legal teams, and tech infrastructure to meet the SEC’s strict requirements: 24/7 monitoring, cold storage for 95% of assets, ISO 27001 cybersecurity, and real-time reporting to the Nigerian Financial Intelligence Unit.

Meanwhile, the SEC says crypto scams dropped 63% in Q2 2025 compared to Q4 2024. That’s a win for investor protection. But it’s also a win for the VASPs-because fewer scams means more trust, and more trust means more customers paying them fees.

For the average Nigerian, this system means crypto is great for investing and sending money home from abroad. Over 22 million Nigerians receive $25 billion in remittances each year, and crypto is now the fastest, cheapest way to do it. But for buying stuff locally? Still not practical.

What’s changing in 2026?

The SEC admits the system isn’t perfect. In September 2025, Director General Emomotimi Agama said they’re reviewing the merchant acceptance rules. A proposed amendment could create a new category called “Digital Payment Vehicle”-a lighter version of VASP for small businesses.

If this happens, the capital requirement could drop from ₦500 million to ₦50 million ($35,000 to $3,500 USD). That would open the door for thousands of small shops, market vendors, and app developers to accept crypto without drowning in paperwork.

But even then, crypto won’t become legal tender. The CBN is pushing its own digital currency, the eNaira, which launched in October 2025 and already has over 1.2 million users. The government’s goal isn’t to let Bitcoin replace the Naira-it’s to replace cash with a state-controlled digital version.

So don’t expect to pay for akara with Ethereum anytime soon. But if you’re selling to global clients, or sending money to family overseas, crypto is still the most powerful tool in Nigeria’s financial toolbox.

What should you do if you want to accept crypto?

If you’re a business owner in Nigeria and you want to accept crypto payments legally, here’s your roadmap:

• Don’t accept crypto directly. You’ll risk penalties or account freezes.
• Use an SEC-licensed VASP. Quidax, Bybit Nigeria, and Binance Nigeria are the most reliable.
• Only convert to Naira. Never hold crypto in your business wallet.
• Track every transaction. Keep records for SEC audits.
• Check your bank’s policy. Some banks still flag crypto-linked deposits.

For most small businesses, partnering with a VASP is the only realistic option. It’s not ideal-but it’s legal. And in Nigeria’s crypto landscape, legality is the only thing that keeps you in business.

What’s next for crypto in Nigerian business?

The future isn’t about replacing the Naira. It’s about using crypto to connect Nigerian businesses to the global economy. If you’re exporting goods, serving international clients, or receiving remittances, crypto still offers speed and lower fees than traditional banking.

But for local sales? Stick to Naira. The system isn’t built for it-and the regulators aren’t trying to make it work. The real opportunity isn’t in accepting crypto as payment. It’s in using it to get paid by people outside Nigeria.