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Nigeria sets crypto tax collection rules for digital asset platforms
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- DeepHorus
Nigeria’s revenue agency has issued rules requiring crypto platforms and peer-to-peer marketplaces to collect, report and remit taxes, including some payments made in digital tokens. The Nigeria Revenue Service (NRS) published the Guidelines on Taxation of Virtual Assets to clarify existing tax obligations. The framework covers crypto disposals, rewards and transfers.
The guidelines make exchanges and P2P marketplaces central to tax administration. Income tax deducted at source and stamp duty must be remitted in the originating token; value-added tax must be paid in the currency used. Platforms must withhold 1% of proceeds from taxable disposals of crypto assets, security tokens and applicable non-fungible tokens.
A 10% withholding rate applies to staking, mining, airdrops and decentralized finance. Token-to-fiat and fiat-to-token transfers incur a 1.5% stamp duty. Withheld amounts are advance payments credited against final tax liability. Individuals pay progressive rates; non-small companies pay 30%. Stablecoin sales are exempt from the 1% withholding.
The guidelines follow an executive order by President Bola Tinubu establishing a Virtual Asset Council, chaired by the central bank. The NRS and the Securities and Exchange Commission serve as vice chairs. On July 18, the presidency said the NRS would release the policy. The framework builds on reforms effective Jan. 1 under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025.
Nigeria first taxed crypto disposal gains through the Finance Act 2023 with a flat 10% capital gains tax. The 2025 framework replaced that, and the new guidelines detail how gains are valued and taxes withheld, remitted and reconciled. Digital assets are now chargeable assets, and service providers must report customer names, contact information and Tax Identification Numbers.
The rules give crypto platforms a direct role in compliance, potentially increasing revenue while adding administrative burdens. Allowing withheld income tax to be paid in the originating token adapts collection to crypto’s nature. The framework signals continued regulatory attention to Nigeria’s digital asset market.
