Nigeria Introduces Sweeping Crypto Tax Rules Requiring Exchanges to Collect and Remit Taxes on Digital Asset Trades

Nigeria Pushes Crypto Exchanges Into the Centre of Tax Collection

Nigeria has introduced one of its most detailed cryptocurrency tax frameworks, placing crypto exchanges and peer-to-peer (P2P) trading platforms in charge of collecting, withholding and remitting taxes on behalf of users.

The Nigeria Revenue Service (NRS) published its Guidelines on Taxation of Virtual Assets on 31 July 2026 and announced the framework publicly on 3 August.

The rules explain how the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025 apply to digital assets, giving exchanges and marketplace operators a much larger role in tax compliance.

The guidance follows an executive order signed by President Bola Tinubu on 17 July 2026, which established a Virtual Asset Council led by the Central Bank of Nigeria, with the NRS and the Securities and Exchange Commission serving as vice chairs.

New Taxes Apply Across Crypto Transactions

Under the new framework, licensed Virtual Asset Service Providers (VASPs), including crypto exchanges and P2P platforms, must automatically withhold taxes when processing eligible transactions.

Platforms are required to deduct 1% of the proceeds from taxable disposals of cryptocurrencies, security tokens and applicable non-fungible tokens.

The deduction is treated as an advance payment towards a taxpayer's final income tax bill rather than a separate tax.

A 10% withholding tax applies to taxable income generated from staking rewards, mining, airdrops and decentralised finance (DeFi) activities.

Meanwhile, transfers between fiat currency and digital tokens attract a 1.5% stamp duty.

Sales involving stablecoins are exempt from the 1% withholding requirement, although they may still be subject to other tax obligations depending on the nature of the transaction.

Some Taxes Must Be Paid In Crypto Instead Of Cash

One of the most unusual parts of the framework is how certain taxes must be paid.

The NRS stated,

"Income tax deducted at source and stamp duty shall be remitted to the Service in the originating token of the transaction."

This means taxes withheld from a Bitcoin transaction must be paid to the tax authority in Bitcoin, while taxes collected from a USDT transaction must be remitted in USDT.

By comparison, Value Added Tax (VAT) must still be paid in the same currency used to complete the payment.

The approach differs from many other jurisdictions, where crypto taxes are generally calculated in digital assets but settled in fiat currency.

Crypto Profits Now Follow Standard Income Tax Rules

Nigeria has also changed how profits from crypto assets are taxed.

The previous standalone 10% capital gains tax introduced under the Finance Act 2023 has been replaced.

Under the Nigeria Tax Act 2025, taxable gains from digital asset disposals now form part of a taxpayer's overall taxable income and are taxed using the applicable income tax rates.

Companies that do not qualify as small businesses generally face a 30% corporate income tax rate.

Small companies are broadly defined as businesses with annual turnover of no more than ₦100 million (about $65,000) and fixed assets not exceeding ₦250 million (about $163,000).

Individual taxpayers continue to pay progressive personal income tax rates.

Taxable events include selling crypto, exchanging one token for another, or using digital assets to buy goods and services.

Assets must be valued using recognised trading platforms on the transaction date.

Simply holding cryptocurrency does not trigger tax.

Transfers between wallets owned by the same person are also excluded, provided beneficial ownership does not change.

Exchanges Face Tougher Reporting Requirements

The guidelines significantly expand reporting obligations for crypto businesses.

Platforms must register for tax purposes, verify customer identities and connect user activity with Tax Identification Numbers (TINs) and, where applicable, National Identification Numbers.

They are also required to collect and retain records covering acquisition dates, purchase costs, disposal values, transaction fees and counterparties.

Reports submitted to the NRS may include customers' names, addresses, telephone numbers, email addresses and transaction values.

Large or suspicious transactions must also be reported, while identification and transaction records must be retained for at least seven years.

The rules apply equally to centralised exchanges and P2P marketplace operators, closing a reporting gap that previously existed when users traded directly through matching platforms.

Nigeria Aligns Crypto Rules With Global Standards

The updated framework forms part of Nigeria's wider effort to integrate digital assets into its tax system and strengthen oversight of the growing crypto market.

The tax laws require exchanges to collect more detailed customer information while giving authorities greater visibility over digital asset transactions.

The framework is also designed to support international tax cooperation through standards such as the Organisation for Economic Co-operation and Development's Crypto-Asset Reporting Framework (CARF).

Alongside the tax reforms, Nigeria's broader regulatory framework continues to develop.

The Virtual Asset Service Providers Regulation Bill 2026 has passed its second reading in the Senate and is now under review by the Senate Committee on Capital Market.

If approved, it would introduce licensing and compliance requirements for exchanges and other virtual asset businesses operating in the country.