Mining Crypto in Nigeria: Legal Rules and Restrictions in 2025

Is crypto mining legal in Nigeria? The short answer is: yes - but only if you jump through a dozen hoops. There’s no law that says you can’t mine Bitcoin or Ethereum in your garage. But if you try to do it without following the rules, you could lose your equipment, your bank account, or worse - your freedom.

What’s Actually Banned - and What’s Not

You won’t find a single law that says, “Thou shalt not mine crypto in Nigeria.” That’s the problem. Instead, the government built a maze of rules that make mining nearly impossible unless you’re a registered company with deep pockets.

The Central Bank of Nigeria (CBN) banned banks from handling crypto transactions back in 2021. That didn’t stop people from trading - Nigerians moved over $92 billion in crypto between July 2024 and June 2025, according to Chainalysis. But it did kill the easy path for miners. No bank account? No paying for electricity. No paying for hardware. No cashing out profits.

The real shift came in 2025 with the Investments and Securities Act (ISA 2025). This law didn’t ban mining. It made every crypto-related business a securities company. That means if you’re mining and selling the coins you earn, you’re now a Virtual Asset Service Provider (VASP). And VASPs? They need a license from the Securities and Exchange Commission (SEC).

The SEC License: What It Costs and Who Can Get It

Getting an SEC license isn’t like applying for a business permit. It’s a full corporate overhaul.

To qualify, you need:

• A registered Nigerian company with a physical office in Lagos or Abuja
• At least ₦500 million ($335,000) in paid-up capital
• A fidelity bond (insurance) worth at least ₦100 million ($67,000)
• Full KYC and AML compliance systems
• Local management - no offshore directors allowed

These aren’t suggestions. They’re legal requirements. And they’re designed to keep out small operators. A guy with 10 ASIC miners in his basement? He can’t afford this. Only big firms like Quidax and Busha - who got Nigeria’s first provisional licenses in late 2024 - can play.

If you’re mining for yourself and not selling on an exchange? Technically, you’re not a VASP. But if you ever convert your Bitcoin to Naira through a P2P app like Paxful or Binance P2P, you’re touching a licensed platform. And those platforms now report every transaction to the SEC and EFCC. So even solo miners aren’t invisible.

The Tax Trap: Pay Up or Get Fined

The Nigeria Tax Administration Act (NTAA) 2025, which takes effect in January 2026, turns up the heat even more.

Any VASP - including mining operations that sell coins - must register for taxes or face:

• ₦10 million ($6,693) fine in the first month of non-compliance
• ₦1 million ($669) extra for every month after that
• License suspension or permanent revocation

There’s no grace period. No warning. The SEC can shut you down the moment they detect unregistered activity. And they’re not guessing. The law now lets regulators access telecom records, bank data, and blockchain analytics to track crypto flows. If you’re mining and not reporting, they’ll find you.

Electricity: The Hidden Roadblock

Even if you cleared every legal hurdle, Nigeria’s power grid will still stop you.

A single ASIC miner like the Antminer S19 Pro uses about 3,250 watts. That’s more than a whole Nigerian household uses on average. Running it 24/7 costs around ₦45,000 ($30) per month in Lagos - and that’s if the power doesn’t cut out.

Most homes get only 4-6 hours of grid power daily. Miners rely on diesel generators, which add another ₦30,000-₦50,000 ($20-$33) per month in fuel. That’s over ₦80,000 ($53) just to keep one machine running. At current Bitcoin prices, that’s barely enough to cover electricity - let alone hardware depreciation or cooling.

Compare that to Kazakhstan, where electricity costs $0.03 per kWh, or Canada, where hydro power is cheap and reliable. Nigerian miners aren’t just fighting regulators - they’re fighting physics.

Who’s Still Mining - And How

Despite all this, mining hasn’t disappeared. It just went underground.

Some miners operate as “private pools,” pooling resources with friends to share costs and risks. Others use decentralized exchanges (DEXs) to swap mined coins directly for stablecoins like USDT, avoiding licensed platforms entirely. A few have moved their rigs to neighboring countries like Ghana or Kenya, where power is more stable and rules are looser.

The most common workaround? Mining on solar-powered setups. A growing number of tech-savvy Nigerians are installing rooftop solar panels just to power their miners. It’s expensive upfront - $2,000-$5,000 for a full system - but it cuts monthly costs by 70%. It’s not legal, but it’s becoming practical.

What Happens If You Get Caught?

The SEC doesn’t go after individuals yet. But the EFCC does.

In 2024, the EFCC seized over 200 mining rigs from unlicensed operators in Lagos and Abuja. Those rigs were auctioned off, and the owners were charged with operating an unregistered financial business. Some faced jail time.

If you’re mining at home and don’t report income, you’re not breaking the mining law - you’re breaking the tax law. And tax evasion in Nigeria carries up to 10 years in prison.

The message is clear: if you’re making money from crypto, the government wants a cut. And they’re building the tools to take it.

The Future: Legal Mining Is Possible - But Only for the Rich

Nigeria isn’t banning crypto. It’s trying to control it. The ISA 2025 and NTAA 2025 are signs of maturity - not repression. The country wants to be a player in the global crypto economy, not a backwater.

But that future only belongs to companies with lawyers, accountants, and millions in capital. For the average Nigerian with a few GPUs and a dream? The system is stacked against them.

The only real path forward is to wait. The SEC is still approving new licenses. More exchanges will come online. More banks will open accounts for compliant firms. And if you’re patient, you might eventually join the system - legally.

Until then, mining in Nigeria isn’t illegal. But it’s risky, expensive, and barely profitable. And the government is watching.