Nigeria’s New Cryptocurrency Tax Framework: A Comprehensive Guide for 2026
Starting January 2026, Nigeria will implement comprehensive tax regulations for cryptocurrency activities, marking a significant evolution in the country’s digital asset policy. The new framework brings cryptocurrency transactions fully under the national tax system with detailed guidelines for both individual and corporate participants.
Scope and Applicability
The regulations will affect all Nigerian residents, including those who have lived in the country for six months or longer, requiring them to pay taxes on worldwide cryptocurrency gains. Non-residents will only be taxed on Nigeria-linked cryptocurrency transactions, such as trades on Nigerian platforms or digital assets connected to Nigerian infrastructure.
Taxable Events
Under the new system, simply holding cryptocurrency won’t trigger tax obligations. Instead, taxes apply to:
– Converting cryptocurrency to traditional currency
– Exchanging between different cryptocurrencies
– Using cryptocurrency for purchases
The taxable amount will be calculated as the difference between the sale price and purchase price, including associated fees.
Tax Rate Structure
The new progressive tax system replaces the previous 10% flat Capital Gains Tax:
– Transactions under ₦150 million in proceeds with gains below ₦10 million may qualify for exemption
– Mid-level traders face effective rates of 6-8%
– High-income individuals may pay up to 25% on net gains
– Corporate entities, including trading platforms, will be subject to 30% tax
Regulatory Requirements
Virtual Asset Service Providers (VASPs) must:
– Register with the Securities and Exchange Commission
– Maintain KYC documentation
– Submit quarterly transaction reports to the Nigerian Revenue Service
– Face minimum fines of ₦10 million plus ₦1 million monthly for non-compliance
Additional Taxable Activities
The framework also covers:
– Cryptocurrency mining and validation operations
– Staking rewards
– Airdrops
– Yield farming earnings
– NFTs and other digital assets
Implementation and Enforcement
The government will utilize blockchain analytics, exchange reports, and inter-agency cooperation for enforcement, supported by IMF recommendations to restrict informal capital flow channels. Tax expert Taiwo Oyedele notes that the new system’s focus on net gains makes it more equitable, particularly for smaller traders.
Preparation Guidelines
Cryptocurrency participants should:
– Plan for potential tax payments between 5-25% of net profits
– Maintain comprehensive transaction records
– Utilize cryptocurrency tax software
– Organize holdings by investment duration
– Seek professional tax consultation
– Use compliant exchanges with proper reporting capabilities
Legislative Background
These changes stem from the Nigeria Tax Act 2025 and Investments and Securities Act 2025, which formally classify digital assets as taxable securities. The legislation responds to Nigeria’s expanding cryptocurrency market, which has operated largely outside traditional banking channels since the 2021 Central Bank restrictions.
This landmark regulatory framework represents Nigeria’s first comprehensive approach to incorporating cryptocurrency activities into its formal tax system, requiring careful preparation and compliance from all market participants.
