Nigeria Cracks Down on Crypto Tax Evasion with New Guidelines

Nigeria's revenue agency has released guidelines for collecting and remitting taxes from crypto platforms and peer-to-peer marketplaces. The Nigeria Revenue Service (NRS) requires digital asset platforms to withhold, report, and remit taxes on transactions, including income tax deducted at source and stamp duty.

The NRS specifies that income tax withheld at source and stamp duty must be remitted in the originating token of the transaction, while value-added tax must be paid in the currency used for the payment. Exchanges and peer-to-peer marketplaces are placed at the center of withholding, reporting, and remittance under Nigeria's existing laws.

The guidelines set withholding rates ranging from 1% to 10%, depending on the type of transaction, with advance payments credited against the taxpayer's final income tax liability. Individuals are taxed at progressive rates, while companies face a 30% rate, except for small companies. Stablecoin sales are exempt from the 1% withholding tax.

The new guidelines follow an executive order signed by President Bola Tinubu that established a Virtual Asset Council and updated Nigeria's broader tax overhaul under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025. The legislation treats digital assets as chargeable assets and requires virtual asset service providers to report transaction details, including customers' names, contact information, and Tax Identification Numbers.