Nigeria's revenue authority has issued comprehensive crypto tax rules requiring exchanges and P2P platforms to collect, report and remit taxes arising from virtual asset transactions. According to reports from the Nigeria Revenue Service, the Guidelines on Taxation of Virtual Assets were published on July 31, with the framework announced publicly on August 3. The guidelines explain how the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025 apply to digital assets, placing exchanges and P2P operators at the center of reporting and enforcement duties.
Platforms must withhold 1% of proceeds from taxable disposals of cryptocurrencies, security tokens and applicable nonfungible tokens. As reported by crypto.news, sales involving stablecoins are exempt from this 1% withholding requirement, though final tax treatment depends on the transaction and taxpayer. Staking rewards, mining income, airdrops and returns from decentralized finance may attract 10% withholding when treated as taxable income. Additionally, 1.5% stamp duty applies to transfers from fiat currency into tokens and vice versa, with platforms collecting this duty from virtual asset recipients. The withheld amounts serve as advance credits that taxpayers can apply toward their overall income tax obligations.
The framework introduces unique payment requirements for tax obligations. According to the guidelines, income tax deducted at source and stamp duty must be remitted to the NRS in the token used for the underlying transaction. However, VAT must be paid in the currency used for payment. Companies face a 30% income tax rate on taxable profits, while individuals pay progressive personal income tax rates. Taxable events include selling, exchanging or transferring assets when beneficial ownership changes, with crypto payments for goods or services valued at market price on transaction date.
Virtual asset service providers must register for tax purposes and maintain comprehensive records showing acquisition dates, costs, disposal values, fees and counterparties. As reported by crypto.news, platforms must connect customer activity with Tax Identification Numbers and National Identification Numbers where applicable. Reports must include customer names, addresses, telephone numbers, email addresses and transaction values, with platforms required to report large or suspicious activity and retain identification and transaction records for at least seven years. The framework explicitly includes P2P marketplace operators, closing collection gaps for transactions through matching platforms.
President Bola Tinubu directed the NRS to issue the tax policy through a July 18 executive order, creating a Virtual Asset Council chaired by the Central Bank of Nigeria. The council is chaired by the Central Bank of Nigeria, while the Nigeria Revenue Service and the Securities and Exchange Commission serve as vice chairs. Nigeria's Senate is separately considering the Virtual Asset Service Providers Regulation Bill 2026, which passed its second reading in June and moved to the Senate Committee on Capital Market, establishing licensing requirements for exchanges and digital asset businesses. The country first introduced a dedicated tax on cryptocurrency gains through the Finance Act 2023, which imposed a flat 10% capital gains tax on crypto disposals, with the 2025 tax reforms replacing that approach with a broader framework that integrates digital assets into the country's existing tax system.
