Nigeria is walking a fine line between regulation and innovation in the crypto space. While the government is embroiled in a high-stakes $81.5 billion lawsuit against Binance—accusing the exchange of crashing the naira and owing $2 billion in back taxes—it’s signaling that it still welcomes crypto businesses.

Nigerian Information Minister Mohammed Idris recently told Semafor that the country is not shutting its doors to crypto firms. “This is part of the effort to strengthen our laws, not to cripple anybody,” Idris said, clarifying that the goal is regulation, not exclusion. Many crypto companies continue to operate in Nigeria without facing legal action.

Nigeria has been tightening its crypto policies in recent months. In December 2024, the Nigerian Securities and Exchange Commission introduced stricter rules for marketing and advertising, requiring digital asset providers to seek prior approval before hiring third-party marketers. By February 2025, the government also moved to tax crypto transactions in an attempt to increase national revenue.

However, experts question whether this strategy will work. Chainalysis ranked Nigeria second globally for crypto adoption in 2024, with $59 billion in crypto flowing into the country from July 2023 to June 2024. But most of that activity occurs through peer-to-peer and over-the-counter markets—largely invisible to regulators and difficult to tax.

Nic Puckrin, founder of Coin Bureau, highlighted how importers rely on crypto to bypass the naira’s instability and reduce foreign exchange risks. These transactions rarely go through centralized exchanges, making government oversight nearly impossible.

Despite policy efforts, crypto’s grassroots momentum in Nigeria may outpace regulation—leaving the government struggling to catch up. The message is clear: while the doors are open, they come with stricter checks.