Crypto Taxation in Nigeria

Nigeria's treatment of cryptocurrency and digital assets has moved through two distinct legislative stages in three years. The Finance Act 2023 brought digital assets into the Capital Gains Tax framework for the first time. The Nigeria Tax Act 2025, signed 26 June 2025 and effective 1 January 2026, then replaced that flat rate with a progressive income-tax-aligned regime. Both stages are described below, together with the Securities and Exchange Commission (SEC) licensing framework that governs which exchanges may legally operate.

Readers should consult a qualified Nigerian tax professional for guidance on their own circumstances. This page summarises publicly available law and does not constitute professional advice.

How did the Finance Act 2023 first tax digital assets?

The Finance Act 2023 (effective 1 September 2023) amended Section 3(a) of the Capital Gains Tax Act to add "digital assets" as chargeable property [FA2023-EY]. A flat 10 percent Capital Gains Tax (CGT) applied to gains arising from the disposal of digital assets by any taxable person in Nigeria, whether the assets were held domestically or abroad [FA2023-MONDAQ]. Disposal occurs when a capital sum is derived from selling, transferring, or assigning a digital asset, or when rights over it are forfeited. The Act also permitted capital losses on digital asset disposals to be carried forward against gains from the same asset class for up to five years, but losses could not offset gains from other asset classes [FA2023-EY]. The Federal Inland Revenue Service (FIRS) set CGT filing deadlines of 30 June and 31 December of the relevant assessment year. Implementation guidance on cost-basis methodology and exchange-rate conversion remained pending at the time of enactment.

What does the Nigeria Tax Act 2025 change from 1 January 2026?

The Nigeria Tax Administration Act (NTAA) 2025 and the Nigeria Tax Act (NTA) 2025 were signed on 26 June 2025 as part of a four-bill tax-reform package. Section 4 of the NTA explicitly includes "profits or gains from transactions in digital and virtual assets, such as cryptocurrencies and NFTs" as chargeable income [NTA2025-EY]. From 1 January 2026, these gains are no longer subject to the old flat 10 percent CGT rate. Instead they are folded into an individual's total income and taxed at progressive personal income tax rates [NTA2025-PWCNG]:

The 0 percent band means gains below NGN 800,000 (approximately USD 500 at mid-2026 rates) attract no tax for individuals with no other income. For higher earners, the marginal rate on large disposal gains rises to 25 percent. Companies pay corporate income tax at 30 percent on digital-asset gains; small companies with turnover below NGN 25 million pay 0 percent [NTA2025-EY]. A CGT exemption applies where total disposal proceeds in the year are below NGN 150 million and the gain itself is below NGN 10 million [NTA2025-MONDAQ-VAT]. Individual returns are due by 31 March of the following year; PAYE taxpayers with additional crypto income file a self-assessment return on the same deadline.

What transactions trigger a disposal event?

Under Nigerian tax law as it has developed since the Finance Act 2023, a disposal event arises on: sale of digital assets for Nigerian Naira or foreign currency; exchange of one digital asset for another (crypto-to-crypto swap); use of digital assets to pay for goods or services; and gift or transfer of digital assets to another person other than a spouse [FA2023-BANWO]. Mining and staking rewards are treated as ordinary income on receipt at the Naira fair market value on the date of receipt [NTA2025-TECHCABAL]. Subsequent disposal of mined or staked tokens is then a separate chargeable event with the cost base equal to the income value recognised on receipt. Airdrops recognised as having determinable value are likewise ordinary income on receipt.

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How does VAT apply to crypto services?

Under the NTA 2025, VAT at 7.5 percent applies to fees charged by crypto trading platforms and exchanges as a service supply, not to the underlying digital asset itself [NTA2025-MONDAQ-VAT]. Foreign digital service providers supplying services consumed in Nigeria must register with the Nigeria Revenue Service (NRS) and remit VAT under the place-of-consumption principle. The reverse-charge mechanism requires Nigerian VAT-registered businesses receiving imported digital services to self-account for and remit VAT. Exports of digital products (software, intellectual property) by Nigerian entities qualify for zero-rating, preserving input VAT recovery rights [NTA2025-MONDAQ-VAT].

What SEC licensing applies to crypto exchanges?

The Investments and Securities Act 2025 (ISA 2025), signed in March 2025, formally classifies digital assets as securities under Nigerian law and brings Virtual Asset Service Providers (VASPs) and Digital Asset Exchanges under the Securities and Exchange Commission (SEC Nigeria) [ISA2025-SEC]. Operating as a digital asset service provider without the requisite SEC registration is a criminal offence under the Act. The Accelerated Regulatory Incubation Programme (ARIP), launched June 2024, provides a structured onboarding path. Minimum capital requirements for exchanges and custodians are set at NGN 2 billion (compliance deadline 30 June 2027). As of mid-2026, Quidax and Busha hold provisional licenses [ISA2025-CRYPTOVERSE]. Licensed exchanges must submit quarterly transaction reports to the NRS covering user identities (linked to Tax Identification Numbers and National Identification Numbers), transaction types, dates, asset identities, and Naira values. Failure to comply attracts an initial penalty of NGN 10 million and NGN 1 million for each subsequent month, plus possible license revocation [NTA2025-TECHCABAL].

For a broader view of the Nigerian tax system including income tax rates, withholding obligations, and corporate tax, see the Nigeria country overview. For cross-jurisdiction comparison of how major economies tax digital assets, visit the crypto taxation topic hub.

Nigeria's digital-asset tax framework is evolving rapidly. The transition from a flat 10 percent CGT under Finance Act 2023 to the progressive NTA 2025 rates took effect on 1 January 2026, and NRS guidance on cost-basis methodology, exchange-rate conversion, and DeFi protocol treatment is still developing. Anyone with material cryptocurrency activity in Nigeria should obtain guidance from a qualified Nigerian tax professional.