How it works in Nigeria
Yes, you can pay your team in Nigeria in stablecoins with Toku. Salary is set, withheld and paid in naira, and because the Central Bank of Nigeria's 2026 rules govern which stablecoins may be made available and used for payment, Toku confirms for each employee and contractor how a USDC or USDT option can be offered before the first payment.
Paying employees
The Labour Act requires a worker's wages in legal tender, and the CBN's November 2026 rules bar settling a naira obligation in a foreign-currency stablecoin unless foreign-exchange or other law allows it, so the salary is paid in naira first. Because the CBN allows a foreign-currency stablecoin to be made available in Nigeria only if it is approved and handled by a licensed provider, Toku confirms for each employee whether and how a USDC option for net pay can be offered before the first payment. The tax authority values any pay received in virtual assets at fair market value on the day it is received. (Sources: Labour Act, Cap. L1, sections 1 and 91 (Federal Ministry of Labour and Employment, NELEX); CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026); Nigeria Revenue Service, Information Circular 2026/21: Guidelines on the Taxation of Virtual Assets (July 31, 2026))
Paying contractors
Contractors can invoice in naira or US dollars. Since November 5, 2026, stablecoin payments to people in Nigeria need a CBN-approved token and a CBN-licensed provider, and cross-border stablecoin payments handled by licensed providers follow foreign-exchange rules, so Toku confirms the USDC or USDT settlement route for each contractor before the first payment. (Source: CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
Salary is set and taxed in local currency. Employees who opt in have their net pay, once paid, converted into USDC, and contractors are settled in USDC or USDT, where the local rules allow it. Toku handles the conversion, the compliance checks and the tax and payment reporting, and confirms the arrangement for each person before the first payment.
How Nigeria treats crypto and stablecoins
The Investments and Securities Act 2025 includes virtual and digital assets in its definition of securities, and since November 5, 2026 the Central Bank of Nigeria regulates non-security virtual assets such as stablecoins. The Nigeria Tax Act 2025 counts crypto assets as digital assets whose gains are taxable. Under the CBN Act, CBN-issued naira notes are legal tender for any amount. (Sources: Investments and Securities Act, 2025 (SEC Nigeria); CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026); Nigeria Tax Act, 2025 (Lagos State Internal Revenue Service copy of the gazette); Central Bank of Nigeria Act, 2007, sections 15 and 20)
The naira is Nigeria's unit of currency and CBN-issued naira notes are legal tender for payments of any amount. Refusing to accept the naira as payment is an offence, although the CBN can prescribe when other currencies may be used as a medium of exchange. Crypto is not legal tender. (Source: Central Bank of Nigeria Act, 2007, sections 15 and 20)
In February 2021 the CBN told banks and other financial institutions that dealing in crypto or facilitating payments for crypto exchanges was prohibited and ordered such accounts closed. Its December 2023 guidelines replaced that restriction: banks may now hold designated accounts for virtual asset service providers licensed by the SEC, but still may not hold or trade virtual currencies on their own account, and platform transactions settled through Nigerian banks must be in naira. (Sources: CBN letter BSD/DIR/PUB/LAB/014/001 on cryptocurrency (February 5, 2021); CBN Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (December 22, 2023))
Two regulators now share the market. The Investments and Securities Act 2025 treats virtual and digital assets as securities and has the SEC register and regulate virtual asset service providers. Since November 5, 2026, the CBN also licenses and supervises non-security virtual assets, including stablecoins, and the services used to pay, transfer and remit with them, and the rules may apply whether or not the provider has a physical presence in Nigeria. (Sources: Investments and Securities Act, 2025 (SEC Nigeria); CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
Under the CBN's 2026 regulations, foreign-currency stablecoins such as dollar coins may not be offered, distributed or otherwise made available to people in Nigeria unless the CBN has approved them as Class 2 stablecoins issued through a Nigerian-licensed issuer. Nobody may facilitate using a stablecoin or other virtual asset for payment, transfer or remittance unless the token is approved for payment use and the provider holds the matching CBN licence. Even an approved foreign-currency stablecoin may not be used to settle a naira obligation inside Nigeria unless foreign-exchange or other law expressly allows it. (Source: CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
Local rules for paying employees in Nigeria
Section 1 of the Labour Act says a worker's wages must be payable in legal tender, and a contract that makes any part of the wages payable another way is illegal and void. Money wages may be paid in legal tender or, with the worker's prior written consent, by cheque or postal order. Items in kind, such as food or housing, are allowed only where a law, a collective agreement or an arbitration award provides for them. (Source: Labour Act, Cap. L1, sections 1 and 91 (Federal Ministry of Labour and Employment, NELEX))
The Act's definition of "worker" in section 91 excludes people in administrative, executive, technical and professional roles, so section 1 does not on its face cover staff whose roles are administrative, executive, technical or professional, although it does cover clerical work. For them, the CBN's 2026 regulations point the same way: a dollar stablecoin can only be made available in Nigeria if the CBN has approved it, any payment use needs a CBN-licensed provider, and an approved foreign-currency stablecoin still cannot settle a naira obligation unless foreign-exchange or other law expressly allows it. (Sources: Labour Act, Cap. L1, sections 1 and 91 (Federal Ministry of Labour and Employment, NELEX); CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
For covered workers, that means wages are paid in legal tender. If an employer does pay any part of employment income in virtual assets, the tax authority's July 2026 circular says it must report the quantity paid and its US dollar value, and the employee is taxed on the fair market value on the day it is received. (Sources: Labour Act, Cap. L1, sections 1 and 91 (Federal Ministry of Labour and Employment, NELEX); Nigeria Revenue Service, Information Circular 2026/21: Guidelines on the Taxation of Virtual Assets (July 31, 2026))
Local rules for paying contractors in Nigeria
The CBN's 2026 regulations treat a cross-border payment or conversion in a stablecoin or other virtual asset, carried out, facilitated or settled by licensed parties, as a foreign-exchange transaction, with the same eligibility, documentation, reporting and settlement rules as the foreign-currency equivalent. Inbound personal remittances using virtual assets may only be provided by a CBN-licensed money transfer operator, alone or with an approved licensee, and the recipient is paid in naira unless the CBN decides otherwise. (Source: CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
Export proceeds received in an approved Class 2 stablecoin count as repatriated only once they are redeemed or converted and credited to the exporter's domiciliary account with an authorised dealer. Holding them in a wallet does not count. (Source: CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
The fees themselves are taxable. The Nigeria Tax Administration Act says that when goods or services are paid for in virtual assets, the payment is taxed as if it were made in fiat at market value and the person receiving it must report it as income. The tax authority's July 2026 circular values professional and consultancy fees received in virtual assets at their fair market value on the date of receipt. (Sources: Nigeria Tax Administration Act, 2025 (National Assembly); Nigeria Revenue Service, Information Circular 2026/21: Guidelines on the Taxation of Virtual Assets (July 31, 2026))
Where tax is deductible at source on a payment to a contractor or consultant, the payer must deduct it and remit it by the last day of the following month, under the Joint Revenue Board's 2026 personal income tax guidelines. (Source: Joint Revenue Board, Personal Income Tax Guidelines 2026 (Kogi State IRS copy))
Ways to pay people in Nigeria, compared
How the common ways to pay someone in Nigeria compare. The Toku row describes how Toku works; coverage and the arrangement for each person are confirmed before the first payment.
| Method | Employees | Contractors | What to keep on record |
|---|---|---|---|
| Local payroll and bank transfer in NGN | Salary paid in local currency, with tax and contributions withheld. No stablecoin option. | Paid in NGN or another fiat currency to a bank account. | Payslip or invoice, payment confirmation and any tax withheld. |
| Sending USDC or USDT yourself | Doesn't cover employees on its own: salary still has to be set, withheld and paid under local payroll rules. | You handle the payment, foreign-exchange, tax and reporting rules in Nigeria yourself, and some payment rules there may restrict it. | The NGN value on the payment date, the exchange rate used, wallet addresses and transaction hashes. |
| Toku | Salary set, withheld and paid in NGN through Toku's employer of record, with a USDC option for net pay arranged as described on this page. | Invoices in NGN (or USD where local invoicing rules allow it), settled in USDC or USDT where Toku confirms the route for that contractor, with approvals and payment records in one place. | Contracts, invoices, payment records and tax documents kept with each payment. |
Tax and reporting
From January 1, 2026, the Nigeria Tax Act 2025 makes profits or gains from transactions in digital or virtual assets chargeable to tax, and defines digital assets to include crypto assets. (Source: Nigeria Tax Act, 2025 (Lagos State Internal Revenue Service copy of the gazette))
The Nigeria Revenue Service's Information Circular 2026/21 (July 31, 2026) says employment income and professional or consultancy fees received in virtual assets are taxable at their fair market value on the date of receipt. Gains on disposing of stablecoins are measured against the currency they are pegged to, and no withholding tax applies when stablecoins are disposed of. (Source: Nigeria Revenue Service, Information Circular 2026/21: Guidelines on the Taxation of Virtual Assets (July 31, 2026))
Virtual asset service providers must file returns with the tax authority giving each transaction's details and the customer's name, contact details and tax ID, under the Nigeria Tax Administration Act 2025. (Source: Nigeria Tax Administration Act, 2025 (National Assembly))
Recent changes
- December 22, 2023: The CBN's guidelines on bank accounts for SEC-licensed virtual asset service providers replaced the February 2021 restriction on banks. (Source: CBN Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (December 22, 2023))
- May 2, 2025: The Investments and Securities Act 2025 was gazetted, treating virtual and digital assets as securities regulated by the SEC. (Source: Investments and Securities Act, 2025 (SEC Nigeria))
- January 1, 2026: The Nigeria Tax Act 2025 took effect, making gains from digital and virtual assets chargeable to tax. (Source: Nigeria Tax Act, 2025 (Lagos State Internal Revenue Service copy of the gazette))
- January 16, 2026: The SEC raised minimum capital for virtual asset service providers, for example NGN 2 billion for a digital asset exchange or custodian, with compliance due by June 30, 2027. (Source: SEC Nigeria Circular 26-1, revised minimum capital (January 16, 2026))
- July 17, 2026: A presidential executive order created a Virtual Asset Council chaired by the CBN, with the SEC registering security-type activity and the CBN registering payment, settlement and custody services involving non-security virtual assets. (Source: State House: President signs Executive Order on Virtual Assets (July 2026))
- July 31, 2026: The Nigeria Revenue Service published its guidelines on the taxation of virtual assets, including how crypto received as pay or fees is valued. (Source: Nigeria Revenue Service, Information Circular 2026/21: Guidelines on the Taxation of Virtual Assets (July 31, 2026))
- November 5, 2026: The CBN's regulations for non-security virtual assets took effect. Operators already active must register within 30 days and apply for a licence within 180 days, or stop. (Source: CBN Regulations for the Operations of Non-Security Virtual Assets in Nigeria (November 5, 2026))
What the official sources leave open
The official sources leave these points open. Where one affects a payment, Toku confirms how it is handled for each person before the first payment.
- Whether a foreign company paying a Nigerian resident directly in USDC or USDT counts as making an unapproved stablecoin available, or as facilitating its payment use, under the CBN's 2026 regulations. They do not address payroll, or an unlicensed foreign payer paying a payee's own wallet directly.
- Whether any dollar stablecoin has yet been approved by the CBN as a Class 2 stablecoin.
- Whether administrative, executive, technical and professional employees, whom the Labour Act's wage rule does not cover, may agree to any crypto element of pay.
- How the CBN's rule that stablecoin export proceeds count as repatriated only once converted into a bank domiciliary account applies to individual contractors earning from services.
- We found no Nigerian court ruling on wages or fees paid in crypto.
How Toku pays your team in Nigeria
Employees hired through Toku’s employer of record in Nigeria have their salary set, withheld and paid in local currency, with the USDC option for net pay arranged as described above through stablecoin payroll. Whether Toku can support a hire in Nigeria is confirmed before an offer. Contractors are paid through contractor management, which keeps invoices, approvals and USDC or USDT payment records together. Toku confirms the arrangement for each person before the first payment.
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Toku pioneered this approach: founded in 2020, it started with token payroll and is now an employer of record and global payroll provider in 100+ countries, paying teams in local currency or stablecoins. About Toku.
This guide is general information, not legal or tax advice. Rules on crypto, wages and foreign exchange change often and depend on the facts of each arrangement, so confirm your situation with a qualified local adviser before you pay anyone in crypto or stablecoins.