Many people think crypto mining in Nigeria is illegal. That’s not true - but it’s far from simple. As of 2026, you can mine Bitcoin, Ethereum, or any other cryptocurrency in Nigeria without breaking the law. But if you try to do it without following the rules, you could face heavy fines, frozen bank accounts, or even a shutdown. The government didn’t ban mining. It just made it way harder to do without paperwork, licenses, and cash on hand.
It’s Not Illegal - But It’s Heavily Regulated
Nigeria doesn’t have a law that says, "You can’t mine crypto." Instead, the rules hit you from every side. The real problem isn’t mining itself - it’s what you do after you mine. If you sell your Bitcoin, trade it, or offer mining-as-a-service to others, you’re now dealing with the Securities and Exchange Commission (SEC). Since October 2025, the Investments and Securities Act (ISA 2025) is the law that officially classifies all virtual assets - including mined cryptocurrencies - as securities. This means any business that touches crypto, even mining farms that sell their output, must get an SEC license.Before ISA 2025, mining was a gray zone. Now, if you’re running a mining operation and you’re not registered with the SEC, you’re operating illegally - even if you’re just sitting in your garage with a rack of ASICs. The SEC doesn’t care if you’re a hobbyist. If you’re turning mined coins into Naira or sending them to exchanges, you’re a Virtual Asset Service Provider (VASP). And VASPs? They need a license. Period.
The Banking Ban That Still Haunts Miners
In February 2021, the Central Bank of Nigeria (CBN) banned all Nigerian banks from handling cryptocurrency transactions. That was a shock. Miners couldn’t deposit earnings. They couldn’t pay for electricity or hardware. The move seemed like a death sentence for crypto.But Nigerians didn’t quit. They built alternatives. Peer-to-peer (P2P) trading exploded. Platforms like Paxful, Binance P2P, and local apps became lifelines. Between July 2024 and June 2025, Nigerians moved $92.1 billion in crypto - more than any other country in Africa. That’s not just speculation. That’s people using crypto to send money, pay for goods, and even buy food.
Here’s the catch: Even though the CBN lifted its banking ban in late 2023 and now allows banks to work with licensed crypto firms, most miners still can’t access banking services. Why? Because very few mining operations have the SEC license needed to qualify. So, you can’t open a business bank account. You can’t get a loan for more hardware. You’re stuck using cash, mobile money, or P2P - which means higher fees, slower transfers, and more risk.
Licensing: What It Actually Takes to Go Legal
Getting an SEC license isn’t like registering a small business. It’s expensive, slow, and packed with red tape. Here’s what you need:- Minimum paid-up capital: At least ₦50 million ($33,500) - and that’s just the starting point.
- Fidelity bond: A surety bond worth ₦25 million ($16,750) to cover losses from fraud or mismanagement.
- Nigerian corporate registration: Your company must be registered with the Corporate Affairs Commission (CAC).
- Local office and management: You can’t run this from abroad. You need a physical office in Nigeria and local directors.
- AML/KYC systems: You must verify every customer, log every transaction, and report suspicious activity to the NFIU.
Only two companies - Quidax and Busha - got provisional licenses in 2024. Dozens more are waiting. The SEC is taking its time. They’re checking everything: where the money comes from, who owns the servers, whether the team has experience. If you’re a solo miner or a small group, this is almost impossible to do alone.
Taxes: The New Big Stick
The Nigeria Tax Administration Act (NTAA) 2025 isn’t just about taxes - it’s a warning shot. Signed in June 2025 and taking effect in 2026, this law targets VASPs with brutal penalties:- ₦10 million ($6,693) fine for the first month of non-compliance.
- ₦1 million ($669) extra for every month you stay unregistered.
- SEC can shut you down instantly if you don’t comply.
That’s not a tax. That’s a threat. Even if you’re just mining for yourself and not selling, the government now has the power to track your wallet addresses through telecom data. If they see large, consistent crypto inflows - and you haven’t filed taxes - they can come after you. There’s no grace period. No warning. Just fines and shutdowns.
Infrastructure: The Silent Killer
Let’s be real: even if you get the license, Nigeria’s power grid is a nightmare for mining. Electricity costs between ₦80 and ₦200 per kWh - more than double what it costs in Canada or Kazakhstan. And power outages? They happen daily. A mining rig that runs 24/7 needs stable, cheap power. Most Nigerian miners use generators - which eat up profits fast.Some miners have moved to Ghana, South Africa, or even Georgia, where electricity is cheaper and regulations clearer. Others are turning to solar. A few startups are now building crypto-friendly mini-grids powered by solar and battery banks. But these are still experimental. For now, power costs are the biggest reason most mining operations in Nigeria stay small - or shut down entirely.
Who’s Watching You?
It’s not just the SEC. The Economic and Financial Crimes Commission (EFCC), the Nigerian Financial Intelligence Unit (NFIU), and the CBN are all working together now. They share data. They track transactions. They can subpoena your phone records. If you’re moving large amounts of crypto and not reporting it, you’re on their radar.The law now explicitly bans Ponzi schemes and unlicensed token sales. But it also covers legitimate mining if it’s tied to exchanges or trading platforms. So even if you’re not running a scam, if you’re not registered, you’re still at risk.
What’s Next?
Nigeria isn’t trying to kill crypto. It’s trying to control it. The National Blockchain Policy 2023 encourages blockchain adoption in government, banking, and land records. The goal is to use crypto and blockchain to fix corruption, speed up payments, and attract tech investment.But that only works if businesses play by the rules. The government knows crypto is here to stay. So instead of banning it, they’re building walls around it. The only way to mine crypto legally in Nigeria now is to:
- Register your business with CAC.
- Apply for an SEC license as a VASP.
- Set up full AML/KYC systems.
- Pay your taxes.
- Find a stable, cheap power source.
Most people can’t do all that. And that’s why the majority of mining in Nigeria still happens underground - in homes, garages, and backrooms - without licenses, without bank accounts, and without protection.
Is crypto mining illegal in Nigeria?
No, mining cryptocurrency itself is not illegal in Nigeria. However, any activity that involves selling, trading, or offering mining services to others requires a license from the Securities and Exchange Commission (SEC). Without that license, you’re operating outside the law and risk fines or shutdown.
Can I bank my crypto earnings in Nigeria?
Only if you’re a licensed Virtual Asset Service Provider (VASP). Banks are allowed to work with licensed crypto firms since late 2023, but they won’t touch unlicensed miners. Most miners still rely on peer-to-peer platforms like Paxful or Binance P2P to convert crypto to Naira.
How much does it cost to get a crypto mining license in Nigeria?
There’s no single fee, but you need at least ₦50 million ($33,500) in paid-up capital and a ₦25 million ($16,750) fidelity bond. You also need to register with CAC, set up a physical office, and comply with AML/KYC rules. Total setup costs often exceed ₦100 million ($67,000).
What happens if I mine crypto without a license?
You won’t be arrested, but you’ll be fined. Under the NTAA 2025, you’ll pay ₦10 million ($6,693) in the first month of non-compliance, plus ₦1 million ($669) every month after. The SEC can also freeze your assets, shut down your operation, and report you to the EFCC.
Is crypto mining profitable in Nigeria in 2026?
For most individuals, no. High electricity costs, unreliable power, and the expense of compliance make it hard to profit unless you have access to cheap solar power or industrial-scale energy. Many miners now focus on P2P trading or staking instead of traditional mining.
