Best Crypto Exchanges in Nigeria

Best Cryptocurrency Exchanges in Nigeria

We analyzed 14 digital currency platforms available in Nigeria to identify the best options for local investors. Our assessment focused on compliance with the Central Bank of Nigeria (CBN), user-friendliness, fee structures, supported cryptocurrencies, NGN deposit methods, trading options, and additional features. Below is a comparison table highlighting the top 5 exchanges for Nigerian traders:

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1. Bybit

Bybit is a global cryptocurrency exchange that services over 30 million users across Nigeria and 160 other countries. It is the best option for Nigerian investors as it provides a dedicated Telegram support group for local investors and provides free NGN deposits. There is an extensive portfolio of over 1,100 digital currencies to trade on spot and futures markets, with leverage options up to 100x supported on 180 derivatives contracts.

One of the reasons for Bybit’s popularity is its transparent proof-of-reserves, which are regularly updated to show that all assets are backed on a 1:1 basis and accessible at any time. Aside from trading, users can use the staking, lending and borrowing services to earn a yield on their assets. Additional features include an NFT marketplace, copy trading services, a demo account, a crypto Visa card, Launchpad and Launchpool.

• Fees: Maker fee at 0.02%, taker fee at 0.055% for futures and 0.1% for spot.
• Supported Cryptocurrencies: Over 1,100 digital assets.
• Regulation & Licensing: Licensed globally and available to users in Nigeria.
• NGN Deposit Methods: Bank transfers, Chipper Cash, UPI, IMPS, credit card, debit card and Apple Pay.

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2. MEXC

MEXC has become a top choice for Nigerian cryptocurrency traders, offering a vast selection of over 800 crypto assets. It specialises in high-leverage futures trading, enabling leverage up to 200x, a feature tailored for experienced traders seeking significant market exposure. Operating under stringent regulations with a license from Estonia and headquarters in Seychelles, it ensures a secure trading environment in Nigeria. 

The platform handles more than $2 billion in daily trading volume and has over 10 million users worldwide, demonstrating its robustness and popularity among local investors. Its simple interface, competitive fee structure, and extensive leverage trading options enhance its appeal. In addition to futures, it also provides extensive copy trading services that allow users to automatically mimic the trades of successful traders.

• Fees: Maker fees from 0.02% to 0.06% and taker fees between 0.06% and 0.08% for futures.
• Supported Assets: Over 800 cryptocurrencies.
• Regulation & Licensing: Maintains an Estonian license and is available to Nigerian investors.‍
• NGN Deposit Methods: Credit and debit cards.

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3. Gate.io

Gate.io is a cryptocurrency exchange based in Seychelles and serving over 14 million users in Nigeria and 180 countries. This platform is an attractive option with an impressive collection of 1,700 cryptocurrencies to trade across spot, futures and options markets with up to 100x leverage. Boasting a daily trading volume that surpasses $9 billion, it showcases its capability and popularity in the cryptocurrency world. 

The platform enriches the trading experience with features like automated trading bots, copy trading services, leveraged tokens, and a startup section that hosts initiatives like Gate Wealth Wednesday. It also specialises in staking, giving Nigerian investors access to nine different yield earning options with APY up to 499%. Staking options include simple earn, HODL & Earn, DCA investing, dual investment and cloud mining.

• Fees: 0.1% for maker orders and 0.2% for taker orders.
• Supported Cryptocurrencies: Over 1,700 digital assets.
• Regulation & Licensing: Regulated globally and accessible from Nigeria.
• NGN Deposit Methods: Bank transfers, credit cards, debit cards and Apple Pay.

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4. Luno

Luno is a local exchange headquartered in Lagos. It is registered with the Nigerian Financial Intelligence Unit (NFIU), prioritizing strict compliance with KYC and AML standards. It provides a small selection of 20 cryptocurrencies that can be purchased with NGN, including leading assets like Bitcoin, Ethereum, Bitcoin Cash, USDC, XRP, Litecoin, Chainlink, Uniswap, Cardano, Solana, and Avalanche. 

As an African exchange, it can be used in several regional languages and has a tailored interface for Nigerian investors and traders. Although it has a focus on local clients, it charges extremely high NGN deposit and withdrawal fees from 2%. For this reason, we recommend only using this platform if you have existing cryptocurrency to transfer and use.

• Fees: A 2% fee for fiat-to-crypto trades and 1% for crypto-to-crypto transactions.
• Supported Assets: 20 cryptocurrencies.
• Regulation & Licensing: Fully registered with the NFIU and committed to high compliance standards.
• NGN Deposit Methods: Vouchers (bank transfers).

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5. KuCoin

KuCoin is another popular option in Nigeria with over 30 million users across 200 countries and a daily trading volume exceeding $2.8 billion. Offering traders access to more than 700 cryptocurrencies to buy, sell, trade and stake with competitive fees from just 0.1% for instant buy orders. There are several markets available, such as spot and margin trading, leveraged tokens and derivatives trading with up to 100x leverage.

Aside from crypto, KuCoin gives users access to Web3 products and services through its native blockchain, KCC Chain. This allows users to get exposure to NFTs with its in-built marketplace that supports popular projects like BAYC, which they can store on the Halo Wallet. Additional features include on-chain staking options, a bridging platform and more.

• Fees: Spot trading starts at 0.1%, and derivatives has a maker/taker rebate of 0.02%/0.06%
• Supported Assets: More than 700 cryptocurrencies.
• Regulation & Licensing: Operates globally and is available in Nigeria.
• NGN Deposit Methods: Bank transfers and credit cards.

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Is Crypto Legal in Nigeria?

The legal landscape for cryptocurrencies in Nigeria has changed considerably over time. The Central Bank of Nigeria (CBN) initially issued warnings about the risks associated with trading digital currencies such as Bitcoin, emphasizing concerns related to financial stability and the potential for misuse in illegal activities. In 2017, the CBN released a circular advising financial institutions to stay away from cryptocurrencies, highlighting the risks involved.

However, the regulatory environment began to shift in more recent years, especially with the Securities and Exchange Commission (SEC) of Nigeria introducing guidelines for the industry. In May 2022, the SEC published comprehensive rules titled "New Rules on Issuance, Offering Platforms, and Custody of Digital Assets," offering a framework for financial institutions' engagement with cryptocurrencies. 

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How is Crypto Taxed in Nigeria?

Gains from cryptocurrencies are taxed under a new law introduced by the Buhari-led government in 2023 as part of amendments to the 2022 Finance Act. This legislation imposes a 10% tax on profits from digital assets. The Capital Gains Tax Act was amended to include “digital assets” after “debt,” broadening the scope of taxable assets to include cryptocurrencies, non-fungible tokens (NFTs), and other tokenized assets. 

Similar to the treatment of other tangible assets like real estate, the specific tax obligations related to cryptocurrencies can vary. For this reason, it is recommended that anyone involved in cryptocurrency trading or investing stay informed about the latest tax regulations and seek professional advice if needed. 

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Bottom Line

In summary, various platforms cater to Nigerian traders, with oversight from the Central Bank of Nigeria (CBN) ensuring compliance with national financial regulations. For those beginning their digital currency journey, platforms like Bybit, MEXC, Gate.io, Luno, and KuCoin offer diverse features tailored to meet different trading needs. Compliance with local laws and a variety of deposit methods make these exchanges accessible and user-friendly.