Nigeria Imposes Taxes on Crypto Transactions Amid Regulatory Push

Nigeria's Revenue Service has introduced a new tax framework for virtual digital assets (VDAs), which includes cryptocurrencies, stablecoins, non-fungible tokens (NFTs), and other digital assets. The move aims to strengthen tax compliance in the digital asset ecosystem but has raised concerns among industry representatives that it may discourage crypto adoption.

The guidelines require virtual asset service providers (VASPs) and VASP-operated peer-to-peer (P2P) marketplaces to deduct 1 per cent withholding tax on gross disposal proceeds for specified categories of virtual assets. Additionally, a 10 per cent withholding tax may apply to income earned through activities such as crypto staking, mining, airdrops, and decentralized finance (DeFi) yields.

Industry participants believe the framework could affect activity on regulated crypto platforms. Obinna Iwuno, president of the Digital Assets Coalition, said that taxation should focus on gains rather than every crypto transaction. 'Tax the profit, not the movement of money,' he emphasized.

Nigeria is one of Africa's largest cryptocurrency markets, where digital assets are widely used for payments, savings, and cross-border transfers despite years of regulatory uncertainty. The developments come as several African countries work on regulatory frameworks for VDAs, with South Africa releasing a draft framework for cross-border crypto transactions in August 2026.