Nigeria Officially Adopts Bitcoin as Legal Tender

Nigeria has officially adopted Bitcoin as a legal tender alongside the naira, marking a historic moment for the country and the African continent.

In a national address, President Bola Ahmed Tinubu announced that this decision aims to modernize Nigeria’s economy and position the country at the forefront of financial innovation. Nigeria is now the first African nation and the second in the world after El Salvador to recognize Bitcoin as an official currency for all legal and commercial transactions.

This move means that Bitcoin will be accepted for the payment of taxes, salaries, goods, and services across Nigeria. The Central Bank of Nigeria has been directed to develop a regulatory framework that will integrate Bitcoin payments with existing financial systems, allowing banks and fintech companies to offer cryptocurrency services starting from July 1, 2025.

The government also plans to launch a national Bitcoin payment platform to facilitate smooth transactions.

The decision reflects Nigeria’s growing interest and participation in the cryptocurrency space, driven by high inflation rates, increasing demand among young Nigerians, and the desire to attract global investment. Finance Minister Wale Edun emphasized that adopting Bitcoin is a strategic step toward boosting financial inclusion and protecting citizens’ wealth from currency instability.

To prepare the population for this significant shift, the government intends to roll out an education campaign focused on cryptocurrency safety and usage, alongside efforts to enhance financial infrastructure to support Bitcoin transactions nationwide. The announcement has received mixed reactions, with crypto enthusiasts praising the move while international financial institutions have expressed caution over potential risks.

Following the announcement, Bitcoin’s value surged, and trading activity on Nigerian crypto platforms increased significantly. Nigeria’s decision sets a precedent that could influence other African nations, as countries like Ghana, Kenya, and South Africa explore similar possibilities.