Beginning from January 1, 2026, residents in Nigeria, whether citizens or those who have stayed for six months or more, will be taxed on their global gains from digital assets. Holding crypto outside the country no longer guarantees avoidance.
Non-residents will pay tax only on gains sourced within Nigeria, e.g., trades executed on Nigerian platforms or digital assets tied to Nigerian on‑chain infrastructure.
Similarly, Crypto exchanges and Virtual Asset Service Providers (VASPs) bear heavy obligations. They must register with the SEC, maintain KYC records, and report user transaction data to the Nigeria Revenue Service (NRS, formerly FIRS) quarterly. Noncompliance may attract steep fines (₦10 million initial, ₦1 million per month) and licence revocation.
If you are wondering how the government will execute this? Here is a brief.
Enforcement will rely heavily on blockchain analytics, exchange reporting, and interagency cooperation. As you should know, the IMF has urged Nigeria to block informal channels that evade capital flow rules.
A viral clip on X, recently posted by Duru Bond, which featured tax expert Taiwo Oyedele speaking to a panel summarising the shift, corroborates this position.
According to Oyedele, under the old system, crypto gains were taxed at 10% without considering losses. Under the 2025 laws, you net gains minus losses, then pay income tax on the net.
He also highlighted that small players are shielded: disposals below ₦150 million in proceeds and ₦10 million in gains may be exempt. He warned, “Self‑declarations or exchanges will be reported.”
What counts as taxable crypto activity under the new tax laws?
Under the new framework, disposals of digital assets will trigger a tax obligation. Merely holding crypto does not trigger tax until you swap or monetise it in some way.
“Disposal” includes selling crypto for fiat, swapping one token for another, or using crypto to pay for goods or services. The gain is the difference between what you sold for and your cost basis (what you paid, plus fees).
A notable change: losses on digital asset trading are deductible, but only against gains from digital assets, i.e., you can net gains and losses within the crypto “bucket.” That contrasts with prior rules, where losses were rarely usable.
The NTA defines “digital or virtual assets” broadly to include cryptocurrency, tokens, NFTs, and similar digital representations of value.
If you operate mining or large‑scale validation, it would likely be treated as business income. And, staking rewards, airdrops, or income generated from yield farming are also included. The Acts categorise such profits or value received as taxable “income or gains”.
How much tax will crypto users pay?
Under the NTA 2025, gains from digital assets are now folded into the standard income tax regime. That means the old flat 10% Capital Gains Tax (CGT) is replaced by progressive rates up to 25% for individuals.
The Act keeps exemptions for small disposals: if your sales proceeds are under ₦150 million, and your gain is under ₦10 million, the trade may be exempt.
So, for example, middle‑tier traders may face effective tax rates in the 6–8% range depending on their bracket. Big winners can fall into the 25% top rate. Businesses operating crypto platforms or trading schemes will pay corporate tax (30%) on net profits, subject to the usual rules.
What changed?
Nigeria’s crypto boom has been nothing short of explosive. From underground P2P trades dodging the 2021 Central Bank ban to billions in remittances flowing through apps like Binance, the sector powers dreams amid economic turbulence.
But mid‑2025 brought a game‑changer. Sweeping tax laws (reforms) under the Nigeria Tax Act (NTA) 2025 and Investments and Securities Act (ISA) 2025 yanked digital assets into the spotlight.
Digital assets, cryptocurrencies, NFTs, and tokens are now taxable like stocks or property. Effective January 1, 2026, these laws demand compliance. For users HODLing Bitcoin or day‑trading altcoins, it’s a call to action.
The shift feels monumental. Until recently, crypto lingered in regulatory grey zones. The CBN’s 2021 directive barred banks from facilitating crypto deals, pushing much of the ecosystem underground. Yet despite the hostility, volumes still surged: by mid‑2023, P2P crypto trades in Nigeria had reached $56.7 billion per Chainalysis.
Meanwhile, regulatory efforts by the SEC, including 2022 guidelines, began treating cryptos as securities. But 2025 sealed the deal: in April 2025, President Tinubu signed ISA 2025, which explicitly classifies digital assets like Bitcoin as securities under SEC oversight.
Then on June 26, 2025, the government passed the Nigerian Tax and the Nigerian Tax Administration Acts 2025 into law, consolidating older tax laws and explicitly including “digital assets” as chargeable assets.
By implication, crypto in Nigeria is no longer “off the radar”. Its status as a taxable asset is now legislated.
What this means in practice and how to prepare
- Budget for tax: assume 5% to 25% on net profits. High‑frequency traders need to include this cost in their models.
- Document everything: Keep a detailed ledger of purchases, disposal dates, fees, token swaps, airdrops, and staking rewards. Use crypto tax tools to help trace cost basis across chains.
- Categorise holdings: differentiate between long‑term holds and active trading. That helps in organising your tax return.
- Consult crypto‑friendly tax advisers now: waiting until 2026 may leave you scrambling.
- Use compliant exchanges or wallets: Be sure that your platform provides exportable transaction records. Audit trails will be your best defence.
- Monitor NRS and SEC guidance: Implementation rules, valuation norms, or safe harbour policies may emerge. Watch quarterly tax policy releases.
- If you run a crypto business or platform, upgrade your systems to support reporting, KYC, and audit capabilities.
Also read: How to calculate your income tax as a Nigerian freelancer and remote worker