Is It Legal To Sell Cryptocurrency In Nigeria?

Yes. Nigerians are permitted to sell digital assets. There is no law that stops personal cashing in and out..

The earlier confusion came from a 2021 banking restriction where the CBN told financial institutions to stop servicing crypto companies. That directive did not outlaw crypto ownership. It only blocked banks from working with exchanges. People could still use their wallets without breaking any law.

This position changed in December 2023 when the CBN released a fresh regulation that allowed banks to support registered virtual asset companies. 

Today, licensed exchanges can operate legally and individuals can buy or sell crypto without any violation.

How Nigeria Moved From Confusion to Structure

A well documented timeline helps you understand why things are more stable today.

2021: Restriction on Banks

The CBN released a directive asking banks to stop providing services to crypto-linked companies. This triggered widespread misunderstanding and led many traders to believe crypto had been outlawed.

2022: Rising Usage Despite Restrictions

Nigeria recorded one of the highest levels of crypto adoption globally. A report showed more than 56 billion dollars in crypto transactions between 2021 and 2022 in Africa’s largest market according to Chainalysis. This indicated strong public participation.

2023: Policy Adjustment and First Major Clarity

The CBN reversed its earlier position by issuing a guideline that allowed banks to open accounts for licensed Virtual Asset Service Providers. This marked the first real shift from restriction to governed activity.

2024: Enforcement Actions Against Suspicious Accounts

The EFCC secured a court order freezing 22 bank accounts linked to irregular P2P flows involving about 548 million naira.  This action targeted fraud rings, not normal traders.

2025: Stronger SEC Framework

In Apr 2025 President Tinubu signed the Investments and Securities Act 2025 into law. The Investments and Securities Act strengthened the SEC’s authority. Cryptocurrencies  are now treated as securities, which allows the SEC to license exchanges, enforce KYC rules and supervise how wallet providers handle user funds. 

Who Regulates What in Nigeria?

Central Bank of Nigeria

• Supervises how naira moves in and out of exchanges
  
  
• Reviews account activity for patterns that resemble currency manipulation
  
  
• Ensures financial institutions do not support fraud
  
  

Securities and Exchange Commission

• Registers exchanges and wallet operators
  
  
• Reviews customer verification systems
  
  
• Enforces reporting standards for all virtual asset operators
  
  

Federal Inland Revenue Service

• Reviews crypto-related gains under tax
  
  
• Monitors high-volume accounts
  
  
• Ensures income from any token is recorded correctly
  
  

Is P2P Trading Allowed?

Yes. P2P is not outlawed.
The risk only comes from how people use it.

Most flagged P2P accounts fall into these categories:

• Large inflows from multiple unrelated accounts
  
  
• Transfers that match patterns used in rate manipulation
  
  
• Activity that resembles FX trading without proper records
  
  
• Off-platform deals with no proof of identity
  
  

Clean P2P Patterns

• Use of a structured escrow flow
  
  
• Identity-verified buyers
  
  
• Transparent digital receipts
  
  
• Trade history that matches wallet movements
  
  

Risky P2P Patterns

• Off-platform conversations
  
  
• Third-party deposits
  
  
• Unusual payment instructions
  
  
• Fast-moving large trades without matching proofs
  
  

P2P becomes safe when every step is recorded and traceable.

How Taxes Apply to Crypto Trades

Nigeria is integrating crypto into its tax environment, led by the FIRS.

Situations Where Tax May Apply

• Profit from buying and selling
  
  
• Frequent trading
  
  
• Crypto income from business activity
  
  

Documents You Should Keep

• Buy amount
  
  
• Sale amount
  
  
• Date of purchase
  
  
• Date of sale
  
  
• Screenshots
  
  
• Wallet movement records
  
  
• Exchange statements
  
  

These protect you during compliance checks.

Common Activities That Trigger Trouble

 The trouble usually comes from:

• Unverified platforms
  
  
• Mixed personal and business funds
  
  
• Funds from unknown individuals
  
  
• Wallet activity linked to known scam clusters
  
  
• P2P movements that resemble rate speculation
  
  
• No record of where funds came from
  
  

How To Sell Crypto Safely in Nigeria

1. Use a verified platform

Choose companies that follow the SEC’s VASP framework like Cubex,Breet,Coinbase etc.
2. Complete your KYC

Identity verification is now a requirement for regulated exchanges.

3. Start with small transactions

This helps you understand withdrawal performance and fees.

4. Keep your statements

Every trader should have screenshots, receipts and email confirmations.

5. Avoid off-platform P2P

Stay inside official escrow systems.

6. Keep wallet activity clean

Ensure every incoming asset has a clear source.

7. Keep separate accounts

Do not mix business flows with personal money.

Frequently Asked Questions

Is selling Bitcoin or USDT legal in Nigeria?

Yes. You can sell on licensed platforms or through clean P2P channels.

Do I need to pay tax when I profit from crypto?

It depends on your volume and the nature of the activity. Keep proper records for FIRS.

Is P2P banned?

No. It is active across the country.

Can I use Bitcoin directly for payments?

Businesses cannot officially accept Bitcoin yet. It must be converted to naira.

Conclusion

Nigeria now has organised rules for crypto.
You can sell your coins without fear as long as your transactions are clean and traceable.

Just use trusted apps, keep records of your trades and stay away from random P2P deals with strangers so you won’t have any problems.