Is Crypto Dead In Nigeria? Local Exchange Halts P2P Service

Nigeria’s crackdown on crypto exchanges continues to intensify as regulators tighten rules on crypto exchanges. Over the past few years, authorities have increased oversight and placed heavy restrictions on banks, exchanges, and even crypto transfer services like peer-to-peer trading, making it harder for both users and businesses to trade freely. 

The latest development comes from Quidax, a Nigerian crypto exchange that has halted its peer-to-peer (P2P) trading service in the country just five months after it went live, according to a local report.

This decision seemingly follows increased regulatory pressure on crypto platforms, especially those involved in direct user-to-user transactions. It has also sparked a debate in the Nigerian crypto space on whether the government is trying to slow down the use of crypto in the country or turn it off completely.

Why P2P trading became popular in Nigeria

Peer-to-peer trading (P2P) has been one of the most common ways Nigerians transfer money with each other, either locally or internationally. The system allows users to trade directly with one another instead of going through the exchange itself. The payments are usually made through bank transfers, which the platform acts as a meeting point, in many cases, an escrow service.

The trading model made crypto easy for citizens to access and helped keep trading active even during periods when banks were restricted from offering crypto services. It also helped improve liquidity and allowed users to easily find buyers and sellers at any time.

However, the Nigerian regulators have long viewed it as a problem. Authorities claim that the system has been used by criminals to carry out fraud and move illegal money to avoid transaction trails, as well as to influence exchange rates outside official markets.

Quidax’s solution to the issue 

Initially, Quidax tried to address this issue by introducing strict control when it launched its P2P service. Users who wanted to operate as merchants were required to complete full identity checks, including two-factor authentication, and go through an approval process before being allowed to trade. Only verified traders were allowed to post ads and interact with customers.

Still, with the measure, the feature was still suspended, which suggested that the effort was to keep P2P activity within a controlled environment that regulators could monitor. However, even with these safeguards, the P2P feature was still suspended, showing that the effort to comply alone was not enough under the current regulations.

However, the exchange clarified that while P2P trading has been paused, other services remain active. Users can still access instant swaps and order-book trading.

Adoption despite regulatory crackdown

Despite this crackdown on crypto, Nigeria remains the largest crypto market in Africa. From 2024 to 2025 alone, the country processed around $92.1 billion in crypto transactions, which is three times that of other major African countries like South Africa. 

Last year, the House of Representatives, in a public hearing held in Abuja, Nigeria, also urged authorities to stop viewing young Nigerians as internet fraudsters. In a previous report, a member of the house, Olufemi Bamisile, said that the security agencies, including the Economic and Financial Crimes Commission (EFCC) and the Nigeria Financial Intelligence Unit (NFIU), should stop the ‘misplaced aggression on Nigerians that trade crypto,’ saying that not every young person with a crypto wallet is a fraudster.

In short, Nigeria’s crypto market seems to be entering a new phase. Crypto is still active in Nigeria, but platforms are being forced to drop or rethink services that regulators see as risky. For now, P2P trading appears to be the most affected, even as other parts of the market continue to operate.

Also Read: Nigeria to Track Citizens’ Crypto Income Using National ID, TIN

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