Nigeria has introduced a new set of tax guidelines that require cryptocurrency exchanges and peer-to-peer (P2P) marketplaces to collect, report, and remit taxes on digital asset transactions.
The Guidelines on the Taxation of Virtual Assets, issued by the Nigeria Revenue Service (NRS), explains how existing tax laws now apply to cryptocurrencies, security tokens, and certain non-fungible tokens (NFTs).
One of the key features of the new guidelines is that some withheld taxes must be paid using the same digital token involved in the transaction.
According to the NRS, income tax deducted at source and stamp duty “shall be remitted to the Service in the originating token of the transaction.” However, value-added tax (VAT) must still be remitted in the currency used to make the payment.
The new rules place crypto exchanges and P2P marketplaces at the center of tax compliance. These platforms are now responsible for withholding taxes, reporting transactions, and ensuring that payments are remitted under Nigeria’s existing tax laws.
Guidelines on the Taxation of Virtual Assets
The guidelines outline several tax rates that apply to different crypto-related activities. Platforms must withhold 1% of the proceeds from taxable disposals of cryptocurrencies, security tokens, and applicable NFTs.
Meanwhile, rewards earned from staking, mining, airdrops, and decentralized finance (DeFi) activities are subject to a 10% withholding tax.
In addition, token-to-fiat and fiat-to-token transactions will be charged with a 1.5% stamp duty. These withheld amounts are treated as advance payments and will be credited against a taxpayer’s final income tax liability.
For individual taxpayers, income will continue to be taxed using Nigeria’s progressive income tax system. Companies, except those classified as small businesses, remain subject to a 30% corporate income tax rate.
The guidelines also provide an exemption for stablecoin sales, which are not subject to the 1% withholding tax applied to other taxable crypto disposals.
Part of Nigeria’s Extensive Crypto Tax Reform
The new tax framework is part of Nigeria’s wider effort to improve the regulation and taxation of digital assets.
It follows an executive order signed by President Bola Tinubu establishing the Virtual Asset Council, which is chaired by the Central Bank of Nigeria, while the Nigeria Revenue Service and the Securities and Exchange Commission serve as vice chairs.
Earlier this year, Nigeria’s broader tax reforms took effect under the Nigeria Tax Act and the Nigeria Tax Administration Act of 2025.
These laws officially classify digital assets as chargeable assets and require virtual asset service providers to collect and report customer information, including names, contact details, and Tax Identification Numbers.
Nigeria first introduced a flat 10% capital gains tax on cryptocurrency disposals through the Finance Act 2023. The latest framework replaces that earlier approach by providing more detailed guidance on how digital asset gains should be valued, taxed, withheld, remitted, and reconciled.
Through these updated rules, Nigeria aims to strengthen tax compliance while creating a clearer regulatory environment for the country’s growing digital asset industry.
