Nigeria now has clear rules for taxing cryptocurrencies, including stablecoins, and other virtual assets.
In its Guidelines on the Taxation of Virtual Assets (Information Circular No. 2026/21, dated July 31, 2026), the Nigeria Revenue Service (NRS) sets out how the Nigeria Tax Act 2025 applies to digital assets. The rules follow the Presidential Executive Order on Virtual Assets Coordination, signed in July 2026.
They don't create a separate tax system for crypto. They set out when tax applies, what's exempt, how to calculate your gains, and what users and platforms have to do.
This article is general information, not tax advice. Check with a qualified tax professional.
In short
- The NRS has issued detailed tax rules for virtual assets, from cryptocurrencies to NFTs.
- You pay tax on some transactions. Others, like keeping your crypto or moving it between your own wallets, aren't taxed.
- Exchanges and peer-to-peer platforms now have to report more and check who their customers are.
- Good transaction records matter more now.
Who do the new rules apply to?
They cover Nigeria's virtual asset market, including:
- Individual crypto investors and traders
- Businesses that receive or keep digital assets
- Cryptocurrency exchanges
- Virtual Asset Service Providers (VASPs)
- Peer-to-peer (P2P) trading platforms
Exchanges and P2P marketplace operators now have to collect your Tax Identification Number (TIN) before they activate your account. They also have to check who their customers are, keep transaction records, and report taxable activity to the tax authorities.
Which crypto transactions are taxed?
How much tax you pay depends on the type of transaction. Here are the main ones.
Converting between naira and tokens
A 1.5% stamp duty applies when you swap between naira and tokens. Whoever receives the tokens pays it, and the platform takes it from those tokens, not the cash. So you pay it when you buy tokens with naira.
Selling cryptocurrencies, NFTs, and security tokens
When you sell cryptocurrencies, NFTs, or security tokens, the platform takes 1% of the full sale amount as tax and passes it on. That 1% counts towards your yearly income tax, so it isn't an extra charge on top.
Stablecoins
Stablecoins such as USDT and USDC are exempt from that 1% tax when you sell or convert them. Any return you earn on them can still be taxed as investment income.
Platform fees
You pay 7.5% VAT on services from exchanges and other platforms, such as trading and custody fees. The VAT is on the service, not on the crypto itself.
Business profits
Companies pay 30% company income tax on profits from crypto activity such as trading, running an exchange, mining, or staking. Small companies pay less.
Which crypto transactions are not taxed?
Not everything you do with digital assets is taxed. Here's what isn't.
Keeping crypto
You don't owe tax just for owning cryptocurrency. A rise in its value isn't taxed until you sell or trade it.
Moving assets between your own wallets
You don't owe tax when you move digital assets between wallets you own, as long as ownership doesn't change.
Central bank digital currencies
The eNaira and other central bank digital currencies count as naira, not as taxable virtual assets.
Using crypto as collateral
Taking a loan against your tokens isn't taxed. Tax only comes in later, if you sell the tokens or the lender sells them to cover the loan.
How are crypto gains calculated?
Your gain is calculated in dollars, not naira. So you're taxed on what you actually made, not on a price rise that only happened because the naira weakened:
- You note the asset's value in US dollars when you buy it.
- You note its value in US dollars again when you sell or trade it.
- You calculate the gain or loss in dollars.
- You convert that gain to naira at the official exchange rate on the day you sell.
If you make a loss on one virtual asset, you can set it against a gain on another in the same tax year. You can't use crypto losses to lower tax on other income.
What records should you keep?
You have to report more now, so records matter. If you buy, sell, or receive digital assets, keep the dates, the prices you paid and sold at, wallet addresses, exchange receipts, what each asset was worth at the time, and the exchange rates you used. Where a value isn't clear, keep your records for at least six years.
What happens if you don't comply?
You can be fined for not registering, not keeping records, or not paying the tax you owe. Fines for platforms are far higher than for individuals, and can reach ₦10 million in the first month.
Frequently asked questions
Is cryptocurrency now taxable in Nigeria?
Yes. The new rules set out how existing tax laws apply to crypto and other virtual assets. Whether tax applies depends on the type of transaction.
Do I pay tax just for owning Bitcoin?
No. Owning cryptocurrency isn't taxed until you sell or trade it.
Are stablecoins taxed differently?
Yes. Stablecoins such as USDT and USDC are exempt from the 1% tax when you sell or convert them, and their gains are calculated against the currency they track. Any return you earn on them can still be taxed as investment income.
Do I need a TIN to use a crypto exchange?
Exchanges and P2P marketplace operators have to collect your Tax Identification Number before they activate your account.
Are transfers between my own wallets taxable?
No. Moving digital assets between wallets you own generally isn't taxed, because ownership hasn't changed.
Does this affect people who use crypto for cross-border payments?
Yes. Converting naira into tokens for a cross-border payment isn't taxed as income, but the 1.5% stamp duty still applies when you convert, and VAT applies to the platform's fee.
Key terms
- Virtual asset: A digital asset, such as a cryptocurrency or token, that you can transfer or trade electronically.
- Stablecoin: A cryptocurrency designed to keep a stable value, often by tracking a currency like the US dollar.
- Tax Identification Number (TIN): A unique number the NRS uses to identify taxpayers.
- Withholding tax: Tax taken out of a payment before it reaches you, and passed to the tax authority.
- VAT: Value Added Tax, charged on certain goods and services, including some crypto platform fees.
- VASP: A Virtual Asset Service Provider, such as a cryptocurrency exchange or other licensed digital asset platform.
What this means for you
The new rules don't tax every crypto transaction. They set out when tax applies, what's exempt, and what users and platforms have to report. Knowing which rules apply to you helps you remain compliant and keep the right records.
This is general information, not tax advice. Speak to a qualified tax professional.
