Nigeria Plans To Tax Crypto Transactions Amid Push For Regulation

Nigeria has introduced a new tax framework for virtual digital assets (VDAs) which brings cryptocurrencies, Stablecoins, non-fungible tokens (NFTs) and other digital assets under a formal taxation regime. While the move aims to strengthen tax compliance in the digital asset ecosystem, industry representatives have raised concerns that the measures could affect crypto adoption in one of the world’s most active retail crypto markets.

According to guidelines issued by the Nigeria Revenue Service (NRS), certain token-to-fiat transactions will attract a 1.50 per cent stamp duty. The framework also requires virtual asset service providers (VASPs) and VASP-operated peer-to-peer (P2P) marketplaces to deduct 1 per cent withholding tax on gross disposal proceeds for specified categories of virtual assets. In addition, 10 per cent withholding tax may apply to income earned through activities such as crypto staking, mining, airdrops and decentralised finance (DeFi) yields, where applicable.

The guidelines also allow eligible taxes to be remitted in VDAs instead of the Nigerian naira in specified cases.

However, industry participants believe the framework may discourage activity on regulated crypto platforms. Obinna Iwuno, president of the Digital Assets Coalition, said the rules could effectively turn exchanges into tax collection agents, according to a report by Reuters. “Tax the profit, not the movement of money,” Iwuno said, adding that taxation should focus on gains rather than every crypto transaction.

Nigeria is one of Africa’s largest cryptocurrency markets, where digital assets are widely used for payments, savings, and cross-border transfers despite years of regulatory uncertainty. Iwuno also said the current tax framework places one of the highest transaction tax burdens on one of the world’s most mobile retail crypto user bases, adding that the measures could affect wider adoption of digital assets in the country.

The developments in Nigeria come at a time when several African countries are also working on regulatory frameworks for VDAs. South Africa’s National Treasury and the South African Reserve Bank (SARB) on August 3, 2026, released a draft framework for cross-border crypto transactions. The proposal outlines reporting requirements for such transfers and clarifies that crypto assets will not be recognised as legal currency in the country.