Nigeria Sets Cryptocurrency Tax Rules

Nigeria’s revenue authority has introduced new rules requiring cryptocurrency platforms and peer-to-peer (P2P) marketplaces to collect, report and remit taxes on digital asset transactions, with certain withheld taxes to be paid directly in crypto tokens.

Under its Guidelines on Taxation of Virtual Assets, the Nigeria Revenue Service (NRS) said income tax deducted at source and stamp duty “shall be remitted to the Service in the originating token of the transaction.” Value-added tax, however, must be paid in the same currency used for the underlying payment.

The framework places crypto exchanges and P2P marketplaces at the center of tax withholding, reporting and remittance obligations under Nigeria’s existing tax legislation.

Crypto transactions face different withholding rates

Platforms are required to withhold 1% of proceeds from taxable disposals involving crypto assets, security tokens and applicable non-fungible tokens. Staking, mining, airdrops and decentralized finance activities are subject to a 10% withholding rate, while token-to-fiat and fiat-to-token transfers carry a 1.5% stamp duty.

These withheld amounts are treated as advance payments toward the taxpayer’s final income tax liability. Individuals are subject to progressive tax rates, while companies other than qualifying small businesses generally face a 30% rate. Stablecoin sales are exempt from the 1% withholding tax on taxable crypto disposals.

Nigeria’s crypto tax framework takes shape

The guidelines follow an executive order signed by President Bola Tinubu establishing a Virtual Asset Council chaired by the central bank, with the NRS and Securities and Exchange Commission serving as vice chairs. On July 18, the presidency said the NRS would introduce a policy implementing the country’s tax laws for virtual assets.

Nigeria’s wider tax reforms took effect on Jan. 1 under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025. The legislation classifies digital assets as chargeable assets and requires virtual asset service providers to report transaction information, including customers’ names, contact details and Tax Identification Numbers.

New guidelines build on earlier crypto tax rules

Nigeria first explicitly brought gains from crypto disposals under taxation through the Finance Act 2023, which introduced a flat 10% capital gains tax. That approach was subsequently replaced by the 2025 tax framework, while the latest NRS guidelines provide more detailed rules for calculating gains and determining how crypto-related taxes should be withheld, remitted and reconciled.

Sources:

https://www.nrs.gov.ng/uploads/Guidelines_on_taxation_of_Virtual_Assets_31_7_26_7cd2ef8dab.pdf

https://cointelegraph.com/news/nigeria-crypto-tax-rules-digital-asset-platforms

https://www.nrs.gov.ng/uploads/NIGERIA_TAX_ACT_2025_ef6bb812a5.pdf

https://tat.gov.ng/Nigeria-Tax-Act-2025.pdf