Who Gets Your
Bitcoin When
You Die?
The Nigerian Law of Digital Succession
The Question That Keeps Nigerian HNWI Awake
Can an executor legally inherit an asset that he cannot technically access? And should private keys ever appear in a Will? The answers will reshape how you think about everything you own.
In the summer of 2024, a Lagos-based technology founder died suddenly at the age of forty-one. He was, by all accounts, wealthy — not in the traditional sense of land and buildings, but in the new currency of the digital age. His estate included approximately 180 Bitcoin, held across three hardware wallets and two exchange accounts. At the time of his death, the Bitcoin was worth roughly ₦18 billion.
He had a Will. It was properly executed, witnessed, and deposited with the Probate Registry of the Lagos State High Court. It named his younger brother as executor. It disposed of his real property, his shares in private companies, his motor vehicles, and his bank accounts.
It said nothing about the Bitcoin.
More precisely: it could not say anything useful about the Bitcoin, because the founder had never told anyone — not his brother, not his lawyer, not his wife — where the hardware wallets were physically stored, or what the twelve-word seed phrases were, or which exchanges held the remainder. The passwords were in a password manager. The master password to the password manager was in his head.
This is not an isolated tragedy. It is the opening chapter of a legal revolution that Nigerian succession law is entirely unprepared for. Across the country, an estimated ₦2.4 trillion in digital assets — cryptocurrency, stablecoins, NFTs, domain names, online businesses, social media accounts with commercial value, and digital intellectual property — sits in accounts that will become permanently inaccessible when their owners die.
This monograph is written from the perspective of a lawyer who has spent the last four years advising Nigerian founders, traders, and high-net-worth individuals on the intersection of digital assets and succession law. It is not theoretical. It is drawn from actual matters — anonymized, of course — in which I have been instructed to untangle the mess left behind when a digital asset holder dies without a plan.
The core question is deceptively simple: who gets your Bitcoin when you die? The answer, under current Nigerian law, is: it depends on whether anyone can find the private key.
What follows is a comprehensive examination of the legal architecture — or the lack of it — governing digital succession in Nigeria. It addresses cryptocurrency, wallets, exchanges, stablecoins, NFTs, online businesses, domain names, intellectual property, and social media accounts. It confronts two questions that most Nigerian lawyers are unwilling to ask: Can an executor legally inherit an asset that he cannot technically access? And should private keys ever appear in a Will?
The Digital Assets Landscape
What Nigerian law recognizes — and what it ignores
The Regulatory Contradiction
Nigeria occupies a unique — and legally contradictory — position on digital assets. The Central Bank of Nigeria, in its February 2021 circular, prohibited banks and other financial institutions from facilitating cryptocurrency transactions. Yet the Securities and Exchange Commission, in its 2022 Rules on Issuance, Offering Platform and Custody of Digital Assets, established a regulatory framework for digital asset offerings, treating certain tokens as securities.
The result: cryptocurrency exists in a regulatory limbo. It is not illegal to own. It is not clearly legal to trade through Nigerian banks. It is subject to taxation (the Nigeria Tax Act 2025 imposes capital gains tax on crypto disposals). And it is increasingly the subject of EFCC investigations — not because crypto is illegal, but because it is used to launder proceeds of crime.
The Succession Law Gap
Nigerian succession law — the Wills Act 1837, the Administration of Estates Law of various states, and the customary law regimes — was drafted for a world of physical assets: land, cattle, bank accounts, shares in companies with paper certificates. It assumes that assets can be located, valued, and transferred by an executor with a court order.
Digital assets violate every one of these assumptions. A Bitcoin wallet cannot be located by a court bailiff. Its value fluctuates by the minute. It cannot be transferred by a court order — only by someone who possesses the private key. And the "asset" itself is not a thing; it is an entry on a distributed ledger, accessible only through cryptographic proof of ownership.
Estimated value of digital assets held by Nigerians (2026)
Of crypto holders have no succession plan for their assets
Of all Bitcoin ever mined is permanently lost (mostly deaths)
Nigerian cases directly addressing crypto succession
The Applicable Legal Framework
PRIMARY LEGISLATION
- ▸Wills Act 1837 — Governs testamentary disposition (Southern Nigeria)
- ▸CAMA 2020 — Corporate ownership of digital assets
- ▸SEC Digital Assets Rules 2022 — Classification of tokens
- ▸Nigeria Tax Act 2025 — Capital gains on crypto
- ▸Evidence Act 2011 — Electronic evidence admissibility
- Copyright Act 2022 — Digital IP protection
- ▸Money Laundering Act 2022 — Crypto reporting obligations
REGULATORY BODIES
- ▸SEC Nigeria — Digital asset offerings and custodians
- ▸CBN — Banking interface restrictions
- ▸EFCC — Crypto-related financial crimes
- ▸NFIU — Suspicious transaction reports
- ▸NCC — Domain name administration (.ng)
- ▸FIRS — Tax assessment on crypto gains
Classification of Digital Assets
Not all digital assets are equal under Nigerian law
The first mistake most Nigerian lawyers make is treating "digital assets" as a single category. They are not. Under Nigerian law — and under the SEC's 2022 Rules — digital assets fall into at least six distinct legal categories, each with different succession implications.
Cryptocurrency
Bitcoin, Ethereum, and native tokens
Stablecoins
USDT, USDC, and fiat-pegged tokens
NFTs
Non-fungible tokens and digital art
Domain Names
.ng, .com, and Web3 domains
Online Businesses
E-commerce, SaaS, digital products
Cryptocurrency (Bitcoin, Ethereum, Native Tokens)
Legal Characterization
Under the SEC Rules 2022, cryptocurrencies that function as investments are classified as "digital assets" and may be treated as securities if they meet the Howey Test criteria. Bitcoin and Ethereum, however, are generally treated as commodities rather than securities — a distinction that matters for succession.
Critically, cryptocurrency is property for the purposes of Nigerian succession law. It forms part of the deceased's estate. It is subject to estate administration. But — and this is the critical but — it is property that can only be transferred by someone who possesses the private key.
Succession Implications
- ▸Forms part of the estate for probate purposes
- ▸Subject to capital gains tax on disposal (NTA 2025)
- Cannot be transferred by court order alone
- ▸Requires private key or seed phrase for access
- ▸Self-custody = full control, full risk
- ▸Exchange custody = ToS governs succession
Critical Risk: If the private key is lost, the cryptocurrency is permanently inaccessible. No court, no executor, no lawyer can recover it. This is not a legal problem — it is a mathematical one.
The Private Key Problem
The legal paradox at the heart of digital succession
The Core Legal Paradox
Can an executor legally inherit an asset that he cannot technically access?
This is the question that exposes the fundamental inadequacy of Nigerian succession law in the digital age. Under the Administration of Estates Law, an executor steps into the shoes of the deceased. The executor has the legal right to collect, manage, and distribute the assets of the estate. The executor can obtain a Grant of Probate from the High Court. The executor can present that Grant to banks, land registries, and companies, and they will hand over the assets.
But present a Grant of Probate to a Bitcoin wallet, and nothing happens. The wallet does not recognize the court. The wallet does not recognize the executor. The wallet recognizes only one thing: the private key.
Should Private Keys Ever Appear in a Will?
This is the question that generates the most debate — and the most dangerous advice — in Nigerian digital succession practice. The short answer, from a lawyer who has seen what happens either way, is: almost never, and never in the way most people imagine.
Why NOT to Include Private Keys in a Will
- ✗A Will becomes a public document upon probate. Anyone — competitors, hackers, disgruntled family members — can obtain a copy from the Probate Registry and read your private keys.
- ✗Wills can be contested. If the Will is challenged, the private keys are exposed during litigation — potentially before the challenge is resolved.
- ✗Wills are static. If you rotate your keys (as you should for security), you must execute a codicil or new Will each time. Most people do not.
- ✗Wills are discovered after death. By the time the executor reads the Will, the opportunity to secure the keys properly has passed.
- ✗Legal risk: Including private keys in a Will may be construed as negligent estate planning, exposing the drafting lawyer to professional liability.
The Correct Approach
- ✓The Will should reference the existence of digital assets and identify where the access instructions are stored — but never include the keys themselves.
- ✓Use a "Digital Assets Memorandum" — a separate, privately stored document that references the Will but is not filed with the Probate Registry.
- ✓Employ a "dead man's switch" — a time-locked mechanism that releases the keys to designated beneficiaries if you do not check in periodically.
- ✓Use a qualified custodian — a regulated digital asset custodian (where available in Nigeria) that has succession protocols built into their service.
- ✓Split the key — use Shamir's Secret Sharing or multi-signature wallets so that no single person holds the complete key.
Peter A. Fakayode, Esq. advises: The Will should state: "I hold digital assets, including cryptocurrency, the access details for which are set out in a separate Digital Assets Memorandum dated [DATE], stored [LOCATION]. I direct my executor to consult that Memorandum and to engage [NAMED DIGITAL ASSETS SPECIALIST] to assist in the recovery and administration of these assets." This gives the executor legal authority and practical direction — without exposing the keys.
Decision Tree: Where Should Access Information Be Stored?
Click each option to see the legal and practical implications
IN THE WILL — NOT RECOMMENDED
Legal risk: Will becomes public on probate. Private keys exposed to anyone who requests a copy from the Probate Registry. Practical risk: Keys may be rotated; Will becomes outdated. Professional risk: Lawyer who drafts this may face negligence claims. Verdict: Only acceptable if the Will is never probated (i.e., all assets pass outside probate via trust) — but this defeats the purpose.
Wallet Types & Succession
Each wallet type creates different legal problems
Hot Wallets
Connected to the internet
Succession Risk: HIGH
- • Examples: MetaMask, Trust Wallet, mobile wallets
- • Private keys stored on internet-connected device
- • If device is accessible, keys are accessible
- • BUT: password/seed phrase still required
- • Highest hack risk; easiest to access if you have the device
- • Succession advice: Document device location AND seed phrase separately
Cold Wallets
Hardware devices, offline
Succession Risk: MEDIUM
- • Examples: Ledger, Trezor, Coldcard
- • Private keys stored on physical device
- • Device + PIN + seed phrase all required
- • If executor finds device but not seed phrase: stuck
- • If executor finds seed phrase but not device: can recover on new device
- • Succession advice: Store device and seed phrase in separate secure locations
Custodial (Exchanges)
Binance, Luno, Quidax
Succession Risk: LOW-MEDIUM
- • Exchange holds the private keys
- • Succession governed by Terms of Service
- • Most exchanges have "deceased user" protocols
- • Requires: death certificate, probate, ID of executor
- • Process can take 3-12 months
- • Succession advice: Document which exchanges hold assets; include in Digital Assets Memorandum
Multi-Signature
M-of-N authorization
Succession Risk: LOW (if structured properly)
- • Requires M of N keys to authorize transaction
- • Keys distributed among trusted parties
- • Survives loss of any single key
- • Prevents unilateral action by any one party
- • Most sophisticated succession solution
- • Succession advice: Ideal for family offices; requires careful selection of key holders
Timeline: What Happens to Digital Assets After Death
All self-custody crypto becomes immediately inaccessible unless someone knows the seed phrase. Exchange accounts remain active but no one can legally operate them. Social media accounts become "memorialized" (platform-dependent).
Family discovers (or fails to discover) the existence of digital assets. If discovered: frantic search for hardware wallets, passwords, seed phrases. If not discovered: assets begin their journey to permanent loss.
Probate proceedings commence. Executor applies for Grant of Probate. Exchange accounts may be frozen pending documentation. Crypto markets continue to fluctuate — value may double or halve during this period.
Grant of Probate issued (if uncontested). Executor approaches exchanges with Grant. Exchange succession protocols activated. Self-custody crypto: if seed phrase was properly stored, recovery begins. If not: assets declared lost.
Estate administration concludes. Digital assets distributed (if accessible). Tax obligations settled. For the 78% of Nigerian crypto holders with no succession plan: the assets remain permanently locked, slowly becoming a larger percentage of "lost" Bitcoin.
Asset-Specific Succession
Deep analysis of each digital asset class
When you hold cryptocurrency on an exchange (Binance, Luno, Quidax, Bybit, or any other), you do not hold the cryptocurrency. You hold a contractual right against the exchange — a promise that the exchange will deliver the cryptocurrency to you on demand (subject to their Terms of Service).
This distinction is legally critical. When you die, your executor does not inherit "Bitcoin on Binance." The executor inherits a contractual claim against Binance. The executor must prove to Binance that they are the lawful representative of the deceased — typically through a Grant of Probate, death certificate, and their own identification.
The practical problem: each exchange has different succession protocols, different documentation requirements, and different timelines. Some (like Coinbase in the US) have formal deceased user programs. Nigerian exchanges are less formal — and less predictable.
Practical guidance: Maintain a current list of all exchange accounts, with account numbers/emails, in your Digital Assets Memorandum. Do not include passwords. The executor will need to go through each exchange's succession process individually — a process that can take 3-12 months per exchange.
NFTs present a unique succession challenge because they involve two distinct legal interests: (1) the token itself (a unique entry on a blockchain), and (2) the intellectual property rights in the underlying work (the art, the music, the video).
Under the Copyright Act 2022, copyright in a work is separate from ownership of a physical (or digital) copy of the work. Purchasing an NFT typically does not transfer copyright in the underlying work — it transfers only the token and, usually, a limited license to display the work.
On succession: the NFT token passes as property. The license may or may not be transferable — it depends on the license terms set by the creator. Some NFT projects (notably Bored Ape Yacht Club) grant broad commercial licenses that are transferable. Others grant only personal, non-transferable licenses.
Critical point: if the underlying art is stored on a centralized server (not on-chain), and that server goes down, the NFT becomes a pointer to nothing. The token survives; the value does not.
Domain names are among the most straightforward digital assets to succeed — if you know where to look. Traditional domains (.com, .ng, .org) are registered through registrars (GoDaddy, Namecheap, Whogohost for .ng) under the policies of ICANN or NiRA.
On death, the domain registration passes to the deceased's estate. The executor provides the registrar with a death certificate and Grant of Probate, and the registrar transfers the domain to the beneficiary. This process is well-established and typically takes 2-6 weeks.
Web3 domains (.eth, .sol, .crypto) are different. They are NFTs — tokens on a blockchain. They are held in a wallet, not with a registrar. Succession requires wallet access (private key or seed phrase), not probate documentation. This makes them simultaneously simpler (no registrar bureaucracy) and more dangerous (no recovery if key is lost).
Nigerian founders often hold valuable .ng domains (registered through NiRA-accredited registrars) alongside .com domains and Web3 domains. All three must be accounted for in the Digital Assets Memorandum, with different succession procedures for each.
Intellectual property created or held in digital form — software code, written content, digital art, music, videos, trademarks registered online, trade secrets stored in cloud services — is governed by the Copyright Act 2022, the Trademarks Act, and the common law of confidence.
Copyright passes on death like any other property — it forms part of the estate and can be bequeathed by Will. The Copyright Act 2022 provides that copyright endures for 70 years after the author's death (for literary, musical, and artistic works). During those 70 years, the copyright generates royalties that flow to the estate.
The practical problem: intellectual property is only valuable if someone can access it, license it, and enforce it. If the code is in a GitHub repository that no one can access, if the content is on a platform account that no one can log into, if the trademark registration credentials are in a password manager that no one can open — the IP is legally owned but practically worthless.
Best practice: maintain a "Digital IP Register" — a document listing all intellectual property assets, where they are stored, how they are registered, and how to access them. Store this with the Digital Assets Memorandum.
The Digital Succession Architecture
A practical framework for Nigerian digital asset holders
Layer 1: The Digital Assets Inventory
Before any legal structure can be built, the founder must know what they own. This is harder than it sounds. The typical Nigerian crypto holder has assets spread across 3-7 exchanges, 2-4 wallets (some of which they have forgotten about), and various DeFi protocols.
The Inventory Must Capture:
- • Every exchange account (with email/username used)
- • Every wallet (hardware, software, mobile)
- • Every DeFi position (liquidity pools, staking, lending)
- • Every NFT (and which wallet holds it)
- • Every domain name (and which registrar)
- • Every online business (and access credentials)
- • Every social media account with commercial value
- • Every digital IP asset (and where it is registered/stored)
Layer 2: The Digital Assets Memorandum
A separate, privately stored document — NOT the Will — that contains the access instructions for all digital assets. The Will references this Memorandum; the Memorandum contains the operational details.
The Memorandum Should Include:
- • Location of hardware wallets (physical description, not exact address)
- • Seed phrases (stored separately from devices — see Layer 4)
- • Exchange account details (but not passwords)
- • Password manager master password (stored separately)
- • Names and contact details of digital assets specialist
- • Instructions for each asset class
- • Date of last update (and commitment to update annually)
Layer 3: The Will (Properly Drafted)
The Will should address digital assets explicitly — not by including private keys, but by granting the executor clear legal authority over digital assets and referencing the Digital Assets Memorandum.
Recommended Will Clauses:
- • Specific bequest of digital assets (or residuary clause that captures them)
- • Reference to Digital Assets Memorandum (by date and location)
- • Appointment of digital assets specialist as co-executor or advisor
- • Power to access, manage, and transfer digital assets
- • Power to engage technical experts at estate expense
- • Direction on tax treatment of crypto disposals
Layer 4: Secure Storage Architecture
The private keys and seed phrases must be stored securely — but accessibly to the executor. This is the hardest practical problem in digital succession.
RECOMMENDED
- • Seed phrase on metal plate (fireproof)
- • Stored in bank safe deposit box
- • Second copy with lawyer (sealed envelope)
- • Password manager with emergency access
- • Multi-sig with trusted parties
NEVER DO THIS
- • Seed phrase in plain text on computer
- • Seed phrase in email or cloud notes
- • Seed phrase in the Will itself
- • Seed phrase only in your head
- • Seed phrase on a single piece of paper
Layer 5: The Digital Assets Specialist
Most Nigerian executors are family members — siblings, spouses, adult children. They are not cryptocurrency experts. They do not know how to operate a hardware wallet, how to interact with a blockchain, or how to avoid the scams that target grieving families.
The Will should appoint — or at least authorize the engagement of — a digital assets specialist: a lawyer, accountant, or technical expert who understands cryptocurrency and can guide the executor through the recovery process. This person should be named in the Will, compensated from the estate, and given clear authority to act.
The Penthouse Solicitors maintains a network of digital assets specialists — lawyers, forensic accountants, and blockchain forensic experts — who can be engaged by executors of estates we have planned. This service is available to our clients and their designated executors.
Three Scenarios: What Happens in Practice
The Founder Who Did Nothing
Profile: 45-year-old Lagos founder, holds 50 BTC (₦5B) across three hardware wallets and two exchanges. No Will. No Digital Assets Memorandum. Family knows he "does crypto" but nothing more.
Outcome: Family applies for letters of administration (intestacy). Process takes 18 months. During this time, no one can access the exchange accounts (no legal authority). The hardware wallets are never found — they were in a safe deposit box the family did not know existed. ₦3B in self-custody Bitcoin is permanently lost. The ₦2B on exchanges is eventually recovered after 14 months of correspondence with the exchanges. Family spends ₦80M on legal fees. Siblings dispute the distribution.
The Founder With a Will Only
Profile: 52-year-old Abuja businessman, holds 30 BTC (₦3B) on Binance and 20 BTC (2B) on a Ledger. Has a properly drafted Will that leaves everything to his wife and children. Will mentions "my cryptocurrency holdings" but provides no access details.
Outcome: Probate takes 14 months. Executor (wife) approaches Binance with Grant of Probate. Binance's succession team requires additional documentation (Nigerian notarized documents, court-sealed probate). Process takes 8 months. Binance releases the 30 BTC. The Ledger is found in the founder's study, but the seed phrase was stored in a separate location the wife does not know about. ₦2B in self-custody Bitcoin is lost. Total recovery: ₦3B. Total loss: ₦2B. Legal fees: ₦45M.
The Founder With Full Architecture
Profile: 48-year-old Port Harcourt tech founder, holds 100 BTC (₦10B) across multiple wallets and exchanges, plus NFTs, domains, and an online SaaS business. Has: (i) a Will with digital assets clauses, (ii) a Digital Assets Memorandum, (iii) hardware wallets in a bank safe deposit box with seed phrase stored separately with his lawyer, (iv) a named digital assets specialist, (v) multi-sig wallet for the largest holdings with his lawyer and brother as co-signers.
Outcome: Probate takes 12 months. Executor (brother) engages the named digital assets specialist within the first week. Specialist locates all assets using the Memorandum. Exchange accounts recovered in 4 months. Hardware wallets accessed using seed phrase from lawyer's safe custody. Multi-sig wallet accessed with brother + lawyer co-signature. SaaS business continues operating (credentials in password manager, master password in Memorandum). 100% of digital assets recovered. Total legal and specialist fees: 35M. Time to full recovery: 14 months.
The Difficult Truth
Nigerian law does not yet have a coherent framework for digital succession. The Wills Act 1837 does not mention digital assets. The Administration of Estates Law does not contemplate assets that exist only as entries on a distributed ledger. The Evidence Act 2011 admits electronic evidence, but does not address the succession of electronic assets.
The SEC Rules 2022 are the closest Nigeria has come to a digital asset framework — but they regulate issuance and trading, not succession. The Nigeria Tax Act 2025 taxes crypto disposals — but does not address what happens when the disposer dies.
The result is a legal landscape in which digital asset holders are, effectively, writing their own succession law through the architecture they build (or fail to build) during their lifetimes.
What Nigerian Law Gets Right
- Digital assets are "property" for succession purposes
- ▸Freedom of testation extends to digital assets
- ▸Trusts can hold digital assets (CAMA 2020)
- ▸Private Trust Companies can serve as trustees
- ▸Copyright Act 2022 covers digital IP
- ▸Evidence Act 2011 admits electronic evidence
What Nigerian Law Gets Wrong
- No statutory framework for digital asset succession
- ✗Probate system cannot handle crypto
- ✗No clear tax guidance on inherited crypto
- ✗Exchange succession protocols are ad hoc
- ✗No legal framework for dead man's switches
- ✗Social media succession governed by foreign ToS
The law will catch up. It always does. But the law moves at the speed of legislation, and your Bitcoin moves at the speed of the blockchain. The gap between the two is where fortunes are lost.
The founder who waits for Nigerian law to provide a clean, comprehensive framework for digital succession will die waiting — and their Bitcoin will die with them. The founder who acts now, using the law as it exists (imperfect but sufficient), with skilled counsel and careful architecture, will preserve their digital wealth for the next generation.
The question is not whether Nigerian law facilitates or frustrates digital succession. The question is whether you have the wisdom to build the architecture yourself.
Statutory & Regulatory References
Primary Legislation
- • Wills Act 1837
- • Administration of Estates Law (state-specific)
- • CAMA 2020
- • SEC Rules on Digital Assets 2022
- • Nigeria Tax Act 2025
- • Evidence Act 2011
- • Copyright Act 2022
- • Money Laundering (Prevention and Prohibition) Act 2022
- • CBN Circular on Cryptocurrency (February 2021)
Regulatory Bodies
- • Securities and Exchange Commission (SEC)
- • Central Bank of Nigeria (CBN)
- • Economic and Financial Crimes Commission (EFCC)
- • Nigerian Financial Intelligence Unit (NFIU)
- • Federal Inland Revenue Service (FIRS)
- • NiRA (for .ng domains)
- • NCC (telecommunications and digital infrastructure)
Disclaimer: This monograph is published for general information and educational purposes only. It does not constitute legal advice. The law of digital assets is evolving rapidly. Consult qualified legal counsel for advice specific to your circumstances. The law discussed herein is current as of October 2026.
For founders, traders, and high-net-worth individuals seeking to secure their digital assets for the next generation, The Penthouse Solicitors offers specialized advisory services in digital succession planning.