Nigeria, recognized as Africa’s largest cryptocurrency market, recorded approximately $92.1 billion in on-chain transaction value between July 2024 and June 2025.
This figure represents a significant rebound and growth from the $59 billion recorded in the previous year, driven largely by the country’s persistent inflation and the rapid devaluation of the Naira, which pushed citizens toward Bitcoin and stablecoins like USDT as hedges against economic instability.
During this period of high volume, the Nigerian government significantly tightened its regulatory grip on the sector.
Following the enactment of the Investment and Securities Act (ISA) 2024, the Securities and Exchange Commission (SEC) transitioned from a period of uncertainty to active enforcement. Under its Accelerated Regulatory Incubation Program (ARIP), the SEC mandated that all Virtual Asset Service Providers (VASPs) undergo rigorous registration and assessment.
By early 2026, the commission had approved only a handful of local exchanges, such as Quidax and Busha, while dozens of others remained in a licensing bottleneck.
The regulatory shift also introduced a formal tax regime under the Nigeria Tax Administration Act (NTAA), which took effect in January 2026.
This legislation imposes a 10% capital gains tax on crypto profits and requires exchanges to implement strict Know-Your-Customer (KYC) protocols, seven-year data retention, and mandatory reporting of high-value transactions to the Federal Inland Revenue Service (FIRS).
Authorities justified these measures as necessary to curb systemic risks, including money laundering and terrorism financing, which they claimed had facilitated over $26 billion in unidentified flows through unlicensed platforms in prior years.
Despite these hurdles, Nigeria remains a global leader in grassroots adoption, ranking second worldwide in Chainalysis’ 2025 Global Crypto Adoption Index.
The market is characterized by a high volume of retail and professional-sized transfers, with over 85% of transaction values falling under $1 million.
While the government aims to formalize and tax the industry, market analysts warn that high compliance costs and the slow pace of licensing may drive a significant portion of the $92 billion volume back into unregulated peer-to-peer (P2P) channels.
Would you like me to look into the current licensing status of other major international exchanges operating in Nigeria?
Source : Business Insider Africa
