The Nigeria Revenue Service (NRS) has released detailed guidelines on how cryptocurrency and other virtual asset transactions will be taxed under the Nigeria Tax Act, 2025, marking the country’s most comprehensive framework for digital assets to date.
Issued on July 31, 2026, the guidelines outline how the agency intends to tax cryptocurrencies, stablecoins, NFTs and other digital assets, including who is required to pay, what transactions are taxable, valuation methods, filing procedures, and obligations for taxpayers and Virtual Asset Service Providers (VASPs).
Who is affected?
The new rules apply broadly to individuals and organisations involved in virtual asset transactions.
This includes those who buy, sell or exchange cryptocurrencies, earn income in digital assets, or provide related services. Affected parties range from investors and traders to exchanges, wallet providers, brokers, NFT creators, miners, and users earning staking or DeFi rewards.
Freelancers, employees paid in crypto, businesses accepting digital assets, and even non-resident entities with taxable activities in Nigeria are also covered.
Categories of digital assets
The NRS classifies virtual assets into six categories: cryptocurrencies and exchange tokens, stablecoins, investment tokens, utility and governance tokens, NFTs, and Central Bank Digital Currencies (CBDCs).
Assets such as Bitcoin, Ether, Solana and BNB fall under cryptocurrencies and are subject to income tax on gains and stamp duty on eligible transfers. Stablecoins like USDT and USDC also attract tax on gains, while yields are taxed separately as investment income.
NFT taxation varies depending on whether the holder is a creator, investor or trader.
Exemptions
The guidelines exclude the eNaira and other CBDCs from virtual asset taxation.
These will continue to be treated like fiat currency, meaning no additional crypto-specific tax obligations apply.
Taxable and non-taxable events
Several transactions will attract tax, including buying crypto with fiat, selling digital assets, token swaps, and using crypto for payments. Income from mining, staking, DeFi rewards, salaries, consultancy fees, airdrops and NFT sales are also taxable.
However, certain activities are not taxed on their own. These include simply holding crypto, transferring assets between personal wallets, staking without receiving rewards, minting NFTs before sale, and taking crypto-backed loans.
Applicable taxes
The amount payable depends on the type of transaction.
Individuals will pay income tax on gains, while companies are subject to corporate tax on profits. A 1 per cent withholding tax applies to some transactions, while a 1.5 per cent stamp duty is charged when converting between fiat and tokens.
Although virtual assets themselves are not subject to VAT, a 7.5 per cent VAT applies to services provided by exchanges and other service providers.
How gains are calculated
Under the framework, gains are calculated using a dollar-referenced method to reflect actual investment returns rather than naira depreciation.
Taxpayers must determine the asset’s value in dollars at acquisition and disposal, compute the gain or loss, convert it to naira using the official exchange rate, and then calculate the tax due.
Penalties for non-compliance
The guidelines prescribe penalties for failure to comply, including fines for not registering, filing returns, keeping records, or remitting taxes.
Sanctions range from monetary penalties to additional interest charges, with stricter penalties for Virtual Asset Service Providers and P2P operators.
Registration and filing requirements
All individuals and entities involved in virtual asset activities are required to register for tax and obtain a Tax Identification Number.
Taxpayers must declare crypto-related income in their annual returns, while VASPs are mandated to deduct and remit applicable taxes and maintain proper transaction records.
Compliance obligations for platforms
Cryptocurrency exchanges and P2P platforms are expected to deduct withholding tax, collect stamp duties, charge VAT on services, and file statutory returns.
They must also maintain accurate transaction records in line with tax laws, while users conducting direct peer-to-peer transactions are responsible for self-reporting their tax obligations.
