Nigeria Cracks Down on Crypto Tax Evasion with New Guidelines

Nigeria's revenue agency has issued guidelines for crypto platforms and peer-to-peer marketplaces to collect, report, and remit taxes on digital assets. The Nigeria Revenue Service (NRS) Guidelines on Taxation of Virtual Assets require exchanges and P2P marketplaces to withhold 1% of proceeds from taxable disposals of virtual assets, security tokens, and applicable non-fungible tokens.

The withheld amounts are advance payments credited against the taxpayer's final income tax liability. Individuals are taxed at progressive rates, while companies other than small companies face a 30% rate. Stablecoin sales are exempt from the 1% withholding tax.

The guidelines follow an executive order signed by President Bola Tinubu that established a Virtual Asset Council chaired by the central bank. The council includes the NRS and the Securities and Exchange Commission as vice chairs. Nigeria's broader tax overhaul took effect on January 1 under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025.

The new guidelines place exchanges and P2P marketplaces at the center of withholding, reporting, and remittance under the country's existing laws. The NRS said income tax deducted at source and stamp duty 'shall be remitted to the Service in the originating token of the transaction.' Value-added tax must be remitted in the currency used for the payment.