Major banks in Nigeria have all signed on to the banning of processing cryptocurrency transactions in the country as stipulated by the Federal Government through the Central Bank of Nigeria (CBN). However, there are still some banks that still allow bitcoin purchases.
There are different types of banks in Nigeria, but many of the smaller banks and online-based banks are actively supporting Bitcoin purchases and transactions. There are even some micro banks that are leveling up to integrate with exchange and wallet features.
So, it all depends on the kind of Nigerian banks you are talking about. There is currently no tier-1 banks such as national financial institutions that support or accept transaction of Bitcoin because they are being regulated by the CBN not to engage in such. However, you can buy Bitcoin with any of these Nigerian bank cards.
For example, when purchasing Bitcoin on any exchange, you can use a debit card from Zenith Bank, First Bank of Nigeria, Access Bank, United Bank for Africa (UBA), and Guaranty Trust Bank among a few others.
What this means is that there is no national bank in Nigeria that accepts Bitcoin presently due to the ban on cryptocurrencies. However, you can use the debit card of these banks to purchase Bitcoin in an external exchange.
List of Nigerian Banks whose cards can be used for Bitcoin transactions
Now, let’s run through a list of all the Nigerian banks that, though would not accept direct bitcoin transactions, would work when you use their credit or debit card to purchase BTC or any cryptocurrency on an exchange:
- Zenith Bank Card
- Access Bank Card
- Wema Bank Card
- FCMB Bank Card
- Union Bank Plc
- United Bank For Africa
- Ecobank Plc
- First Bank Nigeria
- Fidelity Bank Card
- Guaranty Trust Bank
- Keystone Bank
- Standard Chartered Bank
Some of these mainstream banks may work on an exchange while some others may not work. So before you use their card to process a bitcoin transaction, ensure that the exchange supports the use of the bank card.
Meanwhile, the cards of their-1 Nigerian banks like United Bank For Africa Plc, Zenith Bank Plc, First City Monument Bank Plc, and Providus Bank Plc can be used but with certain limits.
Some online-based Nigerian banks support payment and transactions using Bitcoin. But you can only use them with their provided Virtual Card. Examples are Changera Virtual Dollar Card, Chipper Cash Virtual Dollar Card, and Sudo. Africa Virtual Dollar Card, Wallets Africa Virtual Dollar Card, and even Flutterwave Virtual Card.
Nigerian Bank cards give problems when processing Bitcoin transactions
Among the Nigerian bank cards that can facilitate the purchase of Bitcoin, some are known to give problems during the transaction process on most crypto exchanges frequently.
Examples of these bank cards include Ecobank Plc, First Bank Nigeria, Fidelity Bank Plc, Guaranty Trust Bank (GTB), Keystone Bank, and even Standard Chartered Bank.
In other words, when looking for a Nigerian Bank to open to use their card for the crypto transaction of external exchanges, then the aforementioned are not ideal.
This is why many people stir away from even using any Debit card provided by Nigerian banks to process their bitcoin transactions. Instead, they go for P2P exchanges that allow them to sell or buy BTC without verification.
If you are using debit or credit cards from these mainstream banks to process your bitcoin transaction and you are experiencing problems, it may be better to try smaller banks like Kuda Bank. Their platform allows you to buy bitcoin in Nigeria and it works smoothly through most Bitcoin P2P platforms, according to average reviews.
How to buy Bitcoin using Nigerian Banks Cards
Buying Bitcoin using Nigerian bank cards is relatively easy as more and more online-based banks that are focused on cryptocurrency are springing up everywhere.
The first step to purchasing Bitcoin using bank cards would be to identify a reliable exchange platform that allows for the processing of Bitcoin transactions and supports payment with debit or credit cards. A website like SnappyExchange is a great platform where you can buy and sell Bitcoin in Nigeria.
After identifying this website, you can visit them, signup up by providing the necessary information, and then navigate with the prompts to the section where you can purchase bitcoin. You will first need to transfer fiat currency to the website using your Nigerian Bank cards (this can be done through bank transfer or automated debiting by providing your bank card details)
P.S: There is no restriction to transferring money from your Nigerian bank to a website that facilitates bitcoin transactions because the motive of the transaction is not defined as it could be for anything else. You only have to ensure that the website supports the use of debit or credit cards as a form of payment for purchasing bitcoin there.
Afterward, you will be able to successfully transfer funds to the website. These funds will now be used to purchase Bitcoin from the website in the equivalent value.
In a recent article, I have extensively explained the various ways you can buy Bitcoin using your Nigerian bank card on either a P2P platform or from our cryptocurrency exchange website.
You can use Nigerian bank cards to purchase bitcoin on any platform or smaller banks that allow for bitcoin transactions, and still accept the use of debit and credit cards as a means to deposit Nigerian naira that would be converted to bitcoin or any other cryptocurrency.
Why Major Nigerian Banks Don’t Accept Bitcoin
We have been able to establish earlier on in this article that there is no popular financial institution in Nigeria that openly facilitates the trading or purchase of bitcoin.
This restriction was stipulated by the Central Bank of Nigeria (CBN) because these coins were perceived as industry disruptors especially considering their unpredictable volatility.
Even amid the curated stereotypes given to cryptocurrency operations in Nigeria posing to be a threat to financial institutions, we are currently experiencing a rapidly growing rate of bitcoin-friendly banks in Nigeria.
While most of them are online-based, they allow people to buy BTC with a bank account as a method of payment through the use of the Nigerian Bank card.
So, outside the tier-1 banks (FUGAZ), the number of banks which accept bitcoin is slowly increasing.
Even though the CBN has placed a ban on the sales of cryptocurrency through Nigerian banks and other financial outfits, there are still options available for those who wish to use credit or debit cards provided that the latter purchase bitcoin from other banks that accept bitcoin.
The issue with buying bitcoin with Nigerian Bank cards is that you can not trade anonymously because most of these exchanges would require you to fill out KYC forms before using debit or credit cards. Also, the fees are not as low as trading with other payment methods.
Keeping you in the loop
As you attempt to know the Nigerian banks that are currently accepting Bitcoin, you should also be aware of recent trends in the Nigerian crypto market that has undoubtedly shaped the way Nigerians access crypto coins, especially Bitcoin, and particularly through popular exchanges like Binance.
Speaking about Binance, the P2P exchange platform has been open to its African users to recommend other local methods they would like to see on the platform. Since this opinion poll, the exchange has added four tier-1 banks were added to the platform, except UBA.
As of the time of writing, Nigerian banks are still banned from processing crypto-related transactions as instructed by the Central Bank of Nigeria (CBN). So whether it is bitcoin or altcoin, the answer to which Nigerian bank accepts bitcoin is None for now.
Meanwhile, it was only recently that the Nigerian Securities and Exchange Commission (SEC) published a regulatory framework about how cryptocurrencies should be used in the country but the framework still runs with the ban by the CBN on banks.
Read: Satoshi Mining
Since there are currently no Nigerian Banks that allow for bitcoin-related transactions, one of the major ways Nigerians participate in the crypto market today is through the P2P market of which Binance appears to be the popular point of entry.
And when we think about it, even though Nigerian banks allow for the purchase of Bitcoin with their debit card from their platform, it is not advisable to do so.
This is because, normally, using bank cards to process crypto transactions can incur transaction fees, which raises the final price of the coin. As a trader, this reduces the chance of you getting a favorable return on investment for said securities.