Nigeria is one of the most crypto-curious countries despite the country’s central bank effectively banning cryptocurrency transactions for many years. As per a Chainalysis report, the most populous African nation ranked quite high on the Global Crypto Adoption Index 2021.
Curiously, transactions on P2P platforms make up the bulk of cryptocurrency transactions in Nigeria. This is partly driven by the Nigerian Central Bank’s reluctance to allow banks to interact with the cryptocurrency market and partly by a generation of young tech-savvy Nigerians looking for new avenues of investment.
Bitcoin is the most popular cryptocurrency in Nigeria and the Bitcoin/Naira pair is perhaps the most traded crypto pair in the country.
The growing interest of the Nigerian public in cryptocurrencies has led to the authorities softening their stance and trying to find a middle ground between regulation and encouraging innovation.
Research conducted under the Central Bank of Nigeria has highlighted the potential of blockchain and cryptocurrency in various sectors of the Nigerian economy. It stated that the impact of cryptocurrency on a country’s fiscal policy depended on the nature and level of development of the nation’s financial market.
At the same time, blockchain technology has big potential in the agriculture sector including improving access to finance. This would further help in addressing the problem of food scarcity.
The connection between cryptocurrency and education has been described as that of “Siamese Twins” as their interrelated nature could help to contribute towards financial inclusion and thereby direct the growth path in an upwards direction.
As per the Nigeria Payments System Vision 2025 report, the country might introduce a bill to define the central bank and the Securities and Exchange Commission’s supervisory authority over cryptocurrency exchanges.
But keeping all that aside, it is an undeniable fact that more Nigerians are getting into cryptocurrency and especially Bitcoin trading. So, if you are here too wondering about the best Bitcoin exchanges in Nigeria, have a look at the list below to find options that may catch your interest.
Top 7 Crypto Exchanges Operating in Nigeria
Recognizing the potential of greater cryptocurrency penetration in Nigeria, several exchanges that facilitate the purchase and sale of these digital assets have started operations in Nigeria. Slowly, exchanges developed completely in the country and catering specifically to Nigerian traders have also come up.
Since Bitcoin remains the top choice of cryptocurrency traders, such exchanges often focus more on Bitcoin trading than any other cryptocurrency.
NairaEx
NairaEx is a Bitcoin exchange based in Nigeria. Its main selling points are its fast transfers and real-time and automated payments. As its name suggests, you can easily buy Bitcoin with the Nigerian Naira(NGN) here. NairaEx also supports same-day funding and withdrawals for Nigerian banks.
Other than that, it offers premium market rates that are set at the time of the transaction. Further, NairaEx runs a referral program where you can earn a commission for every one of your referral trades.
NairaEx has a simple and intuitive interface and compulsorily requires ID verification for purchasing Bitcoin. It has a very streamlined process of exchanging BTC for NGN. The money is transferred as soon as the transaction is confirmed by the system.
Features
✔️Home-grown exchange
✔️P2P exchange primarily for BTC
✔️KYC-compliant exchange
✔️Same-day withdrawals supported
Pros and Cons
✅User-friendly interface ❌Low number of coins supported
✅Real-time transfers
✅Same-day funding and
withdrawal
✅Referral program
Trading Fees
The fee for trading transactions is included in the final price that is provided to the user. Therefore, these rates may vary a bit from each other.
Customer Reviews
NairaEx has good customer service
Some users have had bad experiences with NairaEx.
Why We Picked It
NairaEx is a home-grown exchange that has been developed keeping in mind the specific needs of Nigerian traders. You can simply buy crypto with NGN and it offers same-day withdrawals and deposits for Nigerian banks. Plus, you can earn a commission for every referral trade on NairaEx.
Binance
Binance is a cryptocurrency exchange with endless possibilities. Apart from simple buy/sell transactions, there is a lot to explore here. With Binance, you can also dive into the world of NFTs and explore IGOs and fan tokens. If you’re a business owner, you can use Binance Pay to receive payments in cryptocurrency.
For the shoppers, Binance offers a Visa-powered Binance card that they can use to make payments with their crypto assets. As an incentive, it also gives an 8% BNB cashback on eligible transactions.
Further, if you hold the exchange’s native BNB token, it can entitle you to certain incentives and rewards. These include a 25% reduction in trading fees, rewards via the BNB Vault for staking the token and frequent cashback.
You can also check out the Binance P2P platform. For people not too keen on centralized exchanges but still wanting some level of safety on direct trades, Binance P2P might be the right option. It has low transaction fees and you can choose from among 700 payment methods to settle trades.
Features
✔️Largest exchange in the world
✔️More than 350 cryptocurrencies available
✔️Has a P2P platform
✔️NFT IGOs and fan tokens available
✔️Native utility token is BNB
Pros and Cons
✅Great coin collection ❌Not suitable for beginners
✅Several trade types supported ❌Legal troubles in several countries
✅Binance card with rewards
✅Binance Pay to receive crypto
payments
Trading Fees
There are VIP levels on Binance which are charged trading fees as per the 30-day trading volume or the BNB balance.
Trading fees for Binance
Customer Reviews
The Binance Visa card is liked by users
Binance’s customer support can be better
Why We Picked It
Binance has a lot of variety not just in terms of crypto coins but crypto products in general. It supports several types of trades including futures and options trading. There is also a Binance P2P platform for people who want to do direct trading.
Coinbase
Coinbase is quite an old exchange that has time and again proven its mettle. It is a publicly traded company in America so you can rest assured that it adheres to accountability standards that are much higher than other cryptocurrency exchanges.
Coinbase has a decent cryptocurrency collection that is more than enough if you’re still new to crypto trading. Its interface is very straightforward so you should not have any problem while conducting trades. Besides the web version, it has a solid mobile app with all the functionalities of the former.
Coinbase essentially has two versions- a basic one for beginner-level traders and a Pro one for experienced traders. The former facilitates basic crypto buying and selling and does not feature anything much complicated. On the other hand, the Pro version offers among other things, advanced charting and market tracking features.
Coinbase safely keeps your assets in cold offline storage and follows all the industry best practices to further secure your assets. For example, it auto-enrolls users for 2-factor authentication(2FA) when they make an account and encourages them to set unique and strong passwords.
Features
✔️Second-largest cryptocurrency exchange
✔️More than 250 tradeable assets available
✔️Publicly traded company
✔️Two platforms- basic and pro
✔️2FA and cold wallets for security
Pros and Cons
✅Decent choice of coins ❌Fees can be higher than other
✅Transparency and accountability exchanges
✅User-friendly interface ❌Customer service reviews are poor
✅Great mobile app
✅Native Coinbase wallet
Trading Fees
The trading fees on Coinbase’s default platform differs from trade to trade as it is determined by factors like order size, payment method and market conditions.
Trading fees for Coinbase
Customer Reviews
Coinbase offers a great trading experience
Coinbase’s verification process can be annoying
Why We Picked It
Coinbase is a straightforward exchange that is an excellent option for beginner traders. It is also listed on NASDAQ and its accountability standards are higher than many other crypto exchanges. Coinbase’s mobile app functions seamlessly and the exchange takes all relevant security measures.
Luno
Luno has a simple motto “cryptocurrency is for everyone.” And true to this motto, Luno remains a simple no-nonsense whose goal is to simplify cryptocurrency trading for its users. You can start investing with just 10 NGN.
Luno follows all the KYC and AML requirements of the countries it operates in and in Nigeria, it is also registered with the Nigerian Financial Intelligence Unit(NFIU). Further, there may be certain deposit and withdrawal limits applicable to your account depending on the verification level.
For the security of user accounts and assets, Luno takes all the relevant measures. 95% of the assets are kept in cold wallets and multi-signature encrypted wallets are also used for added security.
Features
✔️11 cryptocurrencies available
✔️20+ pairs for trading
✔️NFIU-registered exchange
✔️Mobile app for Android and iOS
Pros and Cons
✅Suitable for beginners ❌Limited cryptocurrencies available
✅Supports NGN ❌Not a lot of features
✅Majority funds in cold wallets
✅Offers business accounts to
corporations
Trading Fees
Luno has no maker fees and taker fees are charged according to the tier of the user account.
Trading fees for Luno
Customer Reviews
Luno is easy to use and gives a bonus on referrals
Transactions can remain pending on Luno
Why We Picked It
Luno is a good option for novice traders who don’t want to be overwhelmed with too many services and other options. You can directly buy crypto with NGN on Luno or trade it with zero maker fees charged to users. For corporations, it also offers separate business accounts.
Kraken
Kraken is an exchange that segregates products and services according to the level of the users. There is the default Kraken platform that is geared towards beginners and the Kraken Pro platform which caters to advanced traders.
The fees on the default platform are decided by several dynamic factors such as transaction size, type of asset, market conditions and the payment method used. On the other hand, the conventional maker-taker system is used for determining trading fees on the Kraken Pro version.
Here, you can check out margin trading, invest in futures or crypto indices and check out OTC services. This exchange has very high liquidity and low spreads which provides for a seamless trading experience.
To educate users, Kraken features a comprehensive compilation of educational resources in various audio-visual formats. You can also easily find information about Kraken affiliates and its Proof-of-Reserves on its website.
It is a KYC-compliant exchange and there are limits put on your deposits and withdrawals depending on your verification level. Kraken also requires users to enable 2FA for account security. Beyond that, there is the Global Settings Lock(GSL) which can be set up to act as the last line of defence if the account password and 2FA are compromised.
Features
✔️More than 200 cryptocurrencies available
✔️Kraken basic and Kraken Pro platforms
✔️Publicly available proof-of reserves
✔️2FA and GSL for security
Pros and Cons
✅Satisfactory coin collection ❌Fees are high on the basic version
✅Educational material
✅Lower fees on Kraken Pro
✅Good APYs on staking
Trading Fees
The fees on Kraken Instant Buy vary from trade to trade as they are determined by factors such as transaction size, payment method used and the type of asset.
Fees for Kraken Instant Buy
Fees for Kraken Pro
Customer Reviews
Kraken’s customer support is helpful
Some users have found their accounts being closed by Kraken
Why We Picked It
Kraken offers something for everyone. It is smooth sailing once you familiarize yourself with the layout of the platform. You can check out OTC services here and even invest in crypto indices or futures.
Paybis
UK-based Paybis is one of the most popular cryptocurrency exchanges in Nigeria. At around just 30 cryptocurrencies, it may not have the largest selection of coins but it is a trusted and reliable platform. Paybis makes it very easy to buy Bitcoin and other cryptocurrencies with your credit card or debit card.
Paybis charges quite low commissions and facilitates lightning-fast settlements. It transfers the crypto pretty much as soon as the payment is made. The platform also features a conversion calculator that can be used to estimate the cost of buying a particular cryptocurrency.
Features
✔️30+ cryptocurrencies available
✔️Debit and credit cards accepted
✔️Conversion calculator available
Pros and Cons
✅Fast transactions ❌Limited cryptocurrencies available
✅24/7 customer support ❌No mobile app
✅Supports multiple payment methods
✅Transparent fee structure
Trading Fees
Trading fees for Paybis
Customer Reviews
Paybis is a straightforward exchange
Payments may be returned on Paybis
Why We Picked It
Paybis is a straightforward and no-nonsense cryptocurrency exchange. You can easily find the potential cost of a coin with its earnings calculator. It also provides 24/7 multilingual customer support to help users with their queries.
Quidax
Quidax is a South African exchange that offers 36 spot pairs for trading. It is a simple and easily navigable platform that promises fast transactions. It also supports local fiat currencies so you can instantly buy cryptocurrency with NGN.
Quidax has a native token QDX which can be traded with any other coin on the platform and can also be used to access all the DeFi tools that the exchange has to offer. You can also stake QDX via the QDX Vault to earn some passive income and get free tokens during listing and airdrops.
Features
✔️36 spot pairs available
✔️Matches crypto buyers and sellers
✔️Native token is QDX
Pros and Cons
✅High transaction speed ❌High instant buy/sell fees
✅Staking opportunities
✅No deposit fees
Trading Fees
Quidax fees
Customer Reviews
Quidax has fast deposits and withdrawals
Fees can be high on Quidax
Why We Picked It
Quidax is a cryptocurrency exchange with lightning-fast transactions. It supports NGN so you can directly buy crypto with fiat. Quidax also offers some staking opportunities to users.
Top 3 P2P Cryptocurrency Exchanges in Nigeria
Cryptocurrencies were developed on the ideas of privacy and anonymity. Centralized exchanges, with their central order books and mandatory KYC requirements, while convenient are somewhat of an antithesis to the idea of cryptocurrency.
There are traders that feel iffy about handing over data to such exchanges. They prefer not to involve any intermediaries and trade directly. Peer-to-peer or P2P exchanges meet the requirements of such traders. There are a handful of P2P exchanges in Nigeria which have proven to be quite popular among the crypto trading community.
Paxful
Paxful is the leading P2P cryptocurrency marketplace in Nigeria. Here, crypto buyers and sellers directly interact with each other to trade cryptocurrencies. There are over 350 ways to buy and sell Bitcoin including online wallets like PayPal, debit and credit cards and cash.
If you are a seller, you can set your own rates for Bitcoin on Paxful. With Paxful Pay, businesses can conveniently accept crypto payments from a global userbase. It charges a low transaction fee of 1% and there is no issue of chargebacks.
Paxful also runs a rewards program where you can get access to several benefits by inviting other people to the platform and growing your network. These include a reward of 5 USD worth of BTC per referral, exclusive giveaways and sell offer promotions.
Features
✔️350+ payment methods
✔️BTC and USDT for buying and selling
✔️Paxful Wallet to store BTC
✔️Escrow trading available
Pros and Cons
✅Multiple payment methods ❌High fees for sales
✅Biometric verification ❌Possibility of scams
✅Rewards program
✅No fees for buying crypto
Trading Fees
Paxful does not charge any fees for buying crypto but it charges a selling fee depending on the type of payment.
Paxful fees
Customer Reviews
Paxful is a fast and convenient platform
There is a problem of scams on Paxful
Why We Picked It
Paxful promises fast transactions, supports a variety of payment options and does not take any fees for buying crypto. Even the fees for Paxful Pay are comparatively low and there is no issue of chargeback while using it.
Remitano
Launched in 2016, Remitano is a P2P exchange which claims to take less than 1 minute to complete trades. Its unique aspect is that categorizes traders according to their country of residence and the bank they use to ensure swift transactions. You can, therefore, instantly complete transactions with bank transfers on Remitano.
It does not charge any fees for buying and selling BTC and ensures quick deposits and withdrawals for a smooth trading experience. Also, it is a good idea to verify your KYC on Remitano as higher KYC levels bring additional benefits for users.
Features
✔️30+ cryptocurrencies available
✔️Supports crypto lending
✔️Learn and Earn scheme
✔️Native token is RENEC
Pros and Cons
✅Easy to use platform ❌Locking of accounts
✅KYC-compliant exchange
✅Supports NGN
✅Referral program
Trading Fees
Remitano charges a 0.5% fee for stablecoin/fiat pairs and a higher fee for exchanging fiat with other coins.
Remitano fees
Customer Reviews
Remitano is an easy-to-use platform
Remitano may lock user funds
Why We Picked It
You can instantly buy cryptocurrency with NGN on Remitano. It has an attractive referral program as an incentive for users and gives added benefits with higher KYC levels. There are also other services such as crypto lending, swing and learn and earn available.
Bisq
Bisq is probably the most decentralized cryptocurrency exchange out there. It is an exchange that is not even hosted on the web. Bisq is a software that needs to be downloaded and installed on a computer to connect with other traders. There are no order books or intermediaries. It is a purely P2P platform.
Since Bisq does not require any type of ID verification, you can get started in a few minutes and find suitable trades. Its code is open-source and active discussions on GitHub and Keybase constantly strive to improve the app.
You don’t need to transfer any funds to Bisq and always retain control of your private keys while trading here. Even deposits are held in 2-of-2 multisig wallets to ensure secure trading.
Features
✔️Free downloadable computer application
✔️Governed as a decentralized autonomous organization
✔️Native coin is BSQ
✔️Multisig wallets for deposits
Pros and Cons
✅100% decentralized platform ❌Need to have BTC or BSQ
✅User control over private keys ❌Not beginner-friendly
✅No geographical restrictions
✅Open-source code
Trading Fees
Bisq determines trading fees in terms of either BTC or BSQ.
Bisq fees
Customer Reviews
There is no need for registration on Bisq
Liquidity is low on Bisq
Why We Picked It
Bisq has a global community of P2P traders looking for the appropriate crypto trade. It ensures that trading is secure to the maximum extent, is completely hands-off and does not require any sort of registration for trading. Plus, your data is always stored locally so you don’t need to worry about it being compromised in a cyber attack.
Is Cryptocurrency Illegal in Nigeria?
Cryptocurrencies are not illegal in Nigeria but they are not exactly legal either. The Central Bank of Nigeria(CBN) firstly does not consider cryptocurrency to be legal tender and had even forbidden commercial banks from facilitating any sort of cryptocurrency transactions in 2021.
The shutting out of the traditional banking system from the cryptocurrency market has, however, resulted in a curious phenomenon where peer-to-peer or P2P platforms are heavily being used for cryptocurrency trading in Nigeria.
After the CBN’s ban on banks engaging with the crypto sector, Nigeria’s Securities and Exchange Commission(SEC) published guidelines for the cryptocurrency sector in a document titled “New Rules on Issuance, Offering Platforms and Custody of Digital Assets.”
These digital asset rules outlined the obligations of cryptocurrency service providers and the manner in which banks and financial institutions may interact with such service providers.
Under these rules, digital asset exchanges(DAXs) are required to obtain a permit from the SEC first. DAXs also need to prove that they have a minimum paid-up capital of 500 million nairas. Additionally, they are required to have a current fidelity bond covering a minimum 25% of the company’s paid-up capital.
On the taxation front, there are no specific laws for taxing cryptocurrencies though the Federal Inland Revenue Service has stated that capital gains tax is applicable on cryptocurrency transactions.
As of 2023, Nigeria is mulling over introducing a proper regulatory framework for cryptocurrency adoption. It is expected that the Investments and Securities Act 2007 will be amended to recognize Bitcoin as legal capital for investment.
The Bottom Line
Nigeria is gradually emerging as a lucrative market for cryptocurrency trading. Several reports have stated that it has had the largest Bitcoin P2P trading volume for the past few years. Even the CBN’s de facto ban on cryptocurrencies in 2021 did not deter Nigerians from testing out the waters with P2P exchanges.
Now, there are several options for Nigerians to invest in cryptocurrency. From the more globally mainstream centralized exchanges to up-and-coming local ones to the ever popular P2P platforms, there is no dearth of choices.
Ultimately though, it depends on an individual and their personal goals and preferences as to what type of platform they should opt for.
The only consistent thing is that cryptocurrencies are volatile investments whose value can drastically rise and fall in a short span of time. It is, therefore, better to invest in them only if you can handle the risk.