Nigeria Imposes Crypto Tax Framework Amid Regulatory Push

Nigeria has introduced a new tax framework for virtual digital assets (VDAs), which brings cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and other digital assets under formal taxation. This move aims to strengthen tax compliance in the VDA ecosystem.

The Nigeria Revenue Service (NRS) guidelines require virtual asset service providers (VASPs) and VASP-operated peer-to-peer (P2P) marketplaces to deduct a 1 per cent withholding tax on gross disposal proceeds for specified categories of virtual assets. Additionally, certain token-to-fiat transactions will attract a 1.50 per cent stamp duty.

Industry participants believe the framework may discourage activity on regulated crypto platforms. Obinna Iwuno, president of the Digital Assets Coalition, said the rules could effectively turn exchanges into tax collection agents and that taxation should focus on gains rather than every crypto transaction.