Nigeria Imposes Taxes on Cryptocurrency Transactions

Nigeria's cryptocurrency market is facing a new challenge as the government introduces stamp duty on certain transactions and withholding taxes. The tax authority released rules for cryptocurrencies, stablecoins, non-fungible tokens, and other virtual assets this week.

The move aims to boost government revenues by capturing more taxpayers, including those in the digital asset sector. However, industry players say the new rules could undermine adoption of digital assets, which are widely used for payments, savings, and cross-border transfers.

According to Obinna Iwuno, an industry body executive, the tax authority's decision to allow remittance of taxes in digital assets rather than the naira currency is problematic. 'Tax the profit, not the movement of money,' Iwuno said.