Nigeria Turns Crypto Exchanges into Tax Collectors with New Virtual Asset Guidelines
Nigeria has introduced new virtual asset tax guidelines that require cryptocurrency exchanges to collect and remit taxes on behalf of users. The Nigeria Revenue Service (NRS) framework imposes various tax obligations, including withholding tax, stamp duty, value-added tax (VAT), and corporate income tax.
The regulations come as the country seeks to strengthen non-oil revenue collection, with company income tax collections falling 8.08% quarter-on-quarter in Q1 2026 to ₦1.37 trillion ($1 billion).
Under the guidelines, virtual asset service providers (VASPs) must deduct withholding tax on qualifying virtual asset sales and withhold stamp duty in Bitcoin or USDT. They are also required to charge VAT on exchange and service fees, file multiple tax returns, maintain transaction records for six years, and pay up to 30% company income tax on their own profits.
The compliance burden falls heavily on exchanges, which must manage various taxes, including stamp duty, withholding tax, and VAT. The NRS also wants taxpayers to account for gains on virtual assets when the naira depreciates, requiring a USD-conversion method that shields VASPs from paying tax on naira devaluation.
P2P trading is also brought within the tax framework, with platforms required to collect and remit taxes applicable to every transaction processed through their platform. Individuals who trade outside recognised platforms remain responsible for declaring and paying any taxes due on those transactions.