Despite ongoing legal tensions with one of the largest crypto exchanges, Binance, Nigeria remains open to the cryptocurrency business, focusing on regulation rather than an outright ban.
Binance Lawsuit: Case Details
In February 2025, Nigeria filed an $81.5 billion lawsuit against Binance, accusing the exchange of contributing to the naira's devaluation. The government claims that Binance manipulated currency rates and owes $2 billion in back taxes. This legal action is part of Nigeria's broader effort to exert control over the crypto landscape.
New Regulations and Taxation in the Crypto Industry
In December 2024, the Nigerian Securities and Exchange Commission introduced stricter crypto regulations. These include mandatory approval for third-party marketing firms promoting crypto services to curb misleading advertising. In February 2025, regulators also announced plans to tax crypto transactions, although the effectiveness of this measure is questioned due to Nigeria's thriving OTC (Over-The-Counter) market.
Strong Crypto Adoption in Nigeria
Despite regulatory tightening, Nigeria continues to lead globally in crypto adoption. According to Chainalysis's 2024 report, the country ranks second worldwide in crypto transaction volume. Between July 2023 and June 2024, Nigeria received $59 billion in cryptocurrencies. Local importers actively use cryptocurrencies to mitigate naira volatility and currency exchange risks.
Nigeria makes it clear that despite legal challenges and the introduction of new regulations, the country is committed to developing and regulating the crypto space, not suppressing it.
