Cryptocurrency taxation to be mandated by upcoming Nigerian legislation, according to media reports
Nigeria Embraces Cryptocurrency Taxation: A Closer Look at the Regulations
In a significant step towards regulating the cryptocurrency market, the Nigerian Securities and Exchange Commission (SEC) has revised its regulations to enable cryptocurrency taxation. This move, announced in June 2024, is part of an ongoing drive to expand the accelerated regulatory incubation program (ARIP) to include digital assets and allow virtual assets service providers (VASPs) to register and operate within the sandbox.
Under the Investments and Securities Act (ISA) 2025, cryptocurrencies are officially classified as securities. This classification brings crypto asset service providers, digital asset operators, and exchanges under the regulation of the SEC. Individuals trading, selling, receiving, or spending crypto are subject to tax under this regulatory framework.
The Federal Inland Revenue Service (FIRS) launched a VAT digital portal in 2025 that targets digital services, including crypto exchanges, payment platforms, and wallets. Foreign-based crypto exchanges facilitating naira-to-stablecoin purchases or remittances into Nigeria may be taxed as digital service providers. Non-resident suppliers earning over $25,000 annually from Nigeria must register, collect, and remit VAT. This VAT is applied to specific crypto-related services, not explicitly a flat tax on crypto transactions themselves.
While exact crypto transaction tax rates for individuals are not specified clearly, VAT on digital services including cryptocurrencies is implied. No explicit capital gains tax percentage is mentioned in available data, but these taxable events (selling, trading, spending crypto) fall under the ISA framework. Additionally, potentially significant tax revenue is expected generically from capital gains tax or financial transaction taxes on crypto, but Nigeria’s specific rates are not detailed in search results.
In comparison, Kenya has shifted from a direct digital asset tax to an excise duty specifically targeting fees charged by virtual asset providers such as exchanges, custodians, or brokers. As of July 1, 2025, a 10% excise duty applies on transaction fees (commissions or charges) rather than on the entire crypto transaction value.
Two exchanges, Busha and Quidax, have received provisional licenses to operate in Nigeria as a result of the SEC's regulatory drive. However, Kenya's crypto taxation rules are seen as restrictive and harsh, with the introduction of a 3% digital asset tax (DAT) in an earlier year sparking widespread protests.
The bill, now under review by lawmakers, is expected to pass this quarter, according to Bloomberg. The SEC is developing rules to "ensure that all eligible transactions on regulated exchanges are brought into the formal tax net." The move to tax crypto is the regulator's way of exploring more ways to earn revenue, according to Bloomberg.
Although the requirements for operating cryptocurrency exchanges in Nigeria appeared more restrictive than innovative upon closer examination, the overall response to the rules was one of relief, signaling that the country is gradually embracing cryptocurrency. The SEC's aim is to expand its crypto licensing framework, enabling Nigerians to trade on centralized exchanges where transactions can be more easily monitored and taxed. Beyond taxation, the bill proposes additional levies on transactions conducted through regulated exchanges in Nigeria. The SEC's revised regulations will focus on transactions conducted through regulated exchanges in Nigeria, facilitating more efficient tax collection from cryptocurrency transactions.
- The Nigerian Securities and Exchange Commission (SEC) has revised its regulations to allow for cryptocurrency taxation, with the aim of expanding the accelerated regulatory incubation program (ARIP) to include digital assets.
- Under the Investments and Securities Act (ISA) 2025, cryptocurrencies are officially classified as securities, bringing crypto asset service providers, digital asset operators, and exchanges under the regulation of the SEC.
- The Federal Inland Revenue Service (FIRS) in Nigeria has a VAT digital portal that targets digital services, including crypto exchanges, payment platforms, and wallets, and foreign-based crypto exchanges facilitating naira-to-stablecoin purchases or remittances into Nigeria may be taxed as digital service providers.
- The SEC's revised regulations will focus on transactions conducted through regulated exchanges in Nigeria, facilitating more efficient tax collection from cryptocurrency transactions, and the bill also proposes additional levies on transactions conducted through these exchanges.
