Nigeria's Crypto Market at Risk as New Tax Rules Drive Transactions Abroad

The Nigerian government's new tax rules on cryptocurrencies may drive transactions to unregulated foreign platforms, potentially shrinking Africa's largest digital-asset market.

Nigeria has seen a surge in crypto adoption, with $59 billion in inflows between July 2023 and June 2024, according to the International Monetary Fund. The country ranked second in Chainalysis's 2024 Global Crypto Adoption Index.

Industry operators warn that the new rules could trigger significant capital flight, as users seek out unregulated platforms with lower tax burdens.