Nigeria Cracks Down on Cryptocurrency with New Tax Rules

Nigeria has introduced new taxes on cryptocurrency transactions, sparking concerns that it could slow digital asset adoption in one of Africa's most active crypto markets.

The Nigerian tax authority released new rules covering cryptocurrencies, stablecoins, non-fungible tokens, and other virtual assets, including stamp duties and withholding taxes on certain transactions.

The measures are part of Nigeria's broader effort to overhaul its tax system, increase government revenue, and bring more economic activity into the formal tax system. The reforms also target emerging sectors such as e-commerce and digital assets.

Under the new rules, cryptocurrency businesses may be able to remit taxes in digital assets rather than Nigeria's naira currency. However, industry representatives warn that the structure of the new taxes could discourage users from operating through regulated platforms.