Nigeria Imposes 1% Crypto Tax Withholding on Exchanges

Nigeria's Revenue Service has issued guidelines for taxing virtual assets, requiring exchanges and P2P marketplace operators to collect, report, and remit taxes arising from transactions. The framework includes a 1% withholding requirement on taxable crypto disposals, exempting stablecoin sales.

The rules also apply a 10% withholding to staking rewards, mining income, airdrops, and DeFi returns when treated as taxable income. A 1.5% stamp duty is imposed on transfers from fiat currency into tokens or vice versa.

Platforms must connect transactions with tax identities, register for tax purposes, and maintain records showing acquisition dates, costs, disposal values, fees, and counterparties. They must also file information allowing the NRS to identify taxable users and transactions.