Nigeria Cracks Down on Crypto with New Exchange Tax Rules

Nigeria has introduced new tax rules for cryptocurrency exchanges and peer-to-peer marketplaces. The framework requires platforms to withhold taxes on certain transactions, collect stamp duty, and link customer activity to tax identities.

Exchanges and P2P operators must withhold 1% of the proceeds from taxable disposals of cryptocurrencies, security tokens, and qualifying non-fungible tokens. Stablecoin sales are exempt from this withholding, but other taxes may still apply depending on the transaction.

The rules also impose a 10% withholding on rewards from staking, mining, airdrops, and decentralized finance when classified as taxable income. A 1.5% stamp duty is levied on transfers between fiat currencies and digital assets, with the platform responsible for collecting the charge.

Platforms must retain transaction and identification records for at least seven years, including names, addresses, contact details, transaction values, and links to Tax Identification Numbers or National Identification Numbers.