Nigeria’s efforts to formalise its cryptocurrency sector under a regulatory sandbox were dealt a fresh challenge after one of its leading licensed trading platforms announced that it will discontinue its peer-to-peer (P2P) trading service.
Quidax Technologies Limited, a major digital asset exchange operating in Nigeria, said in a Jan. 2026 official notice that its P2P trading feature will cease effective January 23, 2026.
The discontinuation covers the P2P marketplace, order placement, ads, and chat functions on the platform.
The company advised users to complete active trades and transfer any funds in P2P wallets to their spot wallets before the cutoff date.
All other trading functions, including spot trading, deposits, and withdrawals, will continue to operate normally.
The P2P segment has long been a core channel for cryptocurrency transactions in Nigeria, where millions of users have relied on direct, peer-to-peer crypto trades to buy and sell digital assets.
Industry reports indicate that Nigeria has consistently ranked among the global leaders in P2P crypto adoption and volume.
One overview put Nigeria atop the world’s P2P activity rankings in 2025, driven by macroeconomic conditions and demand for direct crypto exchange between individuals.
What Changed for Quidax After Sandbox Licensing
In August 2024, Nigeria’s Securities and Exchange Commission (SEC) granted Quidax and fellow exchange Busha “Approval-in-Principle” licenses under its Accelerated Regulatory Incubation Programme (ARIP), a regulatory sandbox framework created to allow early crypto market participants to operate under supervision while regulators assessed formal requirements.
The ARIP approvals were designed as a precursor to full licensing, with the SEC emphasising that only approved exchanges may legally conduct crypto trading in Nigeria.
However, more than a year after those initial recognitions, the regulator has yet to move operators into full licences, prompting frustration among industry participants.
Market reporting in late 2025 noted that the SEC had not yet advanced the sandbox programme to broader approvals beyond the original provisional cohort.
Quidax’s P2P exit comes amid this broader licence-transition impasse, raising questions about the sustainability of regulated trading channels and the evolution of Nigeria’s regulatory sandbox.
Why P2P Matters in Nigeria’s Crypto Market
Nigeria’s crypto market history is closely tied to peer-to-peer trading.
The model allows users to trade cryptocurrencies like Bitcoin and USDT directly with each other, typically through escrow services provided by platforms, and has been widely adopted in contexts where traditional bank access is limited or costly.
Multiple industry reports note that Nigeria’s P2P market accounted for a dominant share of crypto transaction activity in recent years, often placing the country at or near the top of global P2P rankings.
For many users, P2P remained the most accessible method to convert fiat (such as the naira) into crypto and vice versa, especially during periods where banks restricted crypto transactions.
With the cessation of Quidax’s P2P feature, some traders may need to shift to alternative platforms or methods, potentially reducing participation in regulated exchange channels if alternatives offer more convenience.
