Bitcoin is legal in Nigeria. However, Bitcoin
is not recognized as legal tender by the
Central Bank of Nigeria (CBN)
At present, Bitcoin is unregulated.
However, it is still possible to buy BTC and
convert Bitcoin to Naira at exchanges
Bitcoin trading sites in Nigeria are legal and
protected by state recognition of Bitcoin
startups
Is Buying and Converting Bitcoin to Naira
Legal?
Bitcoin adoption in Nigeria is booming . The
Nigerian Naira has fallen significantly in
value since 2013. During the same period,
Bitcoin prices have risen sharply. Because
of this, many Nigerian entrepreneurs
already buy Bitcoin in Nigeria, for use in
place of the Naira when conducting
business. There is just one problem.
How to Buy Bitcoin in Nigeria Legally
Lack of regulation in Nigeria leads many
Nigerians to assume that Bitcoin is illegal.
However, nothing could be further from the
truth. People looking to buy Bitcoin in
Nigeria do not risk breaking the law. Nor is
it illegal to use Bitcoin exchange sites in
Nigeria to convert Bitcoin to Naira.
All that not being regulated in Nigeria
means, is that Nigeria does not recognize
Bitcoin (or other altcoins) as legal tender.
Where to Buy Bitcoin in Nigeria
Bitcoin exchange sites in Nigeria are few
and far between. In large part, this is due
to confusion surrounding the legality of
cryptocurrency. For this reason, many
Nigerian investors and entrepreneurs are
forced to rely upon high-fee peer-to-peer
exchanges like LocalBitcoins and Paxful.
Thankfully, this is changing.
NairaEx.com is one of several new,
homegrown Bitcoin exchanges. This means
that Nigerian residents can now use
NairaEx to buy Bitcoin for far fairer market
rates than at peer-to-peer exchanges. More
importantly, NairaEx makes it possible to
both buy Bitcoin in Nigeria and convert
Bitcoin to Naira.
Bitcoin Vs. The Nigerian Naira
Is it a good idea to buy Bitcoin in Nigeria?
According to young Nigerian entrepreneurs,
the answer is an overwhelming, yes!
Nerve Mobile founder Silas Okwoche,
initially became a successful entrepreneur
in Nigeria, by buying Android mobile phones
direct from China. However, in recent
years, the Nigerian Naira has fallen 15%
against the Chinese Yuan. For Okwoche,
this resulted in his business becoming loss-
making.
Thankfully, other Nigerian entrepreneurs
have found a way to use Bitcoin to
sidestep volatile Naira price swings.
Specifically, by buying Bitcoin and using
BTC to benefit from easier access to
international markets, reduced international
exchange rates, and elimination of
international bank charges.
100,000 Nigerian Merchants Already
Accept Bitcoin Payments
The Central Bank of Nigeria (CBN) regularly
warns Nigerians not to buy Bitcoin or
invest in cryptocurrency. However, over
100,000 Nigerian merchants already accept
Bitcoin payments.
Thanks to a steadily increasing rate of
Bitcoin adoption in 2018, many believe that
wider Bitcoin adoption in Nigeria is
unstoppable. All that people planning to
buy Bitcoin in Nigeria need to remember, is
that it is far safer (and cheaper) to buy
Bitcoin at exchanges like NairaEx than it is
peer-to-peer exchanges like
LocalBitcoins.com.
