The Legal Status of Cryptocurrencies in Nigeria: Regulatory Challenges and Consumer Protection

The rapid adoption of cryptocurrencies as instruments of investment and remittance in Nigeria has outpaced the development of a coherent regulatory framework, generating significant legal uncertainty for consumers and market participants. Following the Central Bank of Nigeria's 2021 directive restricting bank facilitation of cryptocurrency transactions and the subsequent introduction of regulatory guidelines in 2022, the legal landscape for digital assets has evolved in complex ways. This research examines the current legal status of cryptocurrencies in Nigeria, assessing the regulatory positions of the CBN, the Securities and Exchange Commission, and the Financial Intelligence Unit. A doctrinal methodology is applied, analysing statutory instruments, regulatory circulars, and judicial decisions alongside academic literature published between 2020 and 2024. Empirical data was gathered through a structured survey administered to 150 cryptocurrency users in Lagos and Abuja. The findings reveal substantial confusion among consumers about the legality of their transactions and limited awareness of available dispute resolution mechanisms. The study identifies critical gaps in anti-money laundering oversight, investor protection standards, and cross-border enforcement cooperation. Recommendations are proposed for a comprehensive digital assets regulatory statute that balances innovation promotion with investor protection and financial system stability. This research contributes practical legal analysis to a rapidly evolving area of financial law in Nigeria. Keywords: cryptocurrency, regulation, CBN, consumer protection, digital assets.