Nigeria's Crypto Tax Rules Take Shape with New Guidelines for Platforms

Nigeria's revenue agency has issued rules for crypto platforms and peer-to-peer marketplaces to collect, report, and remit taxes. The Nigeria Revenue Service (NRS) guidelines are part of the country's broader tax overhaul, which treats digital assets as chargeable assets.

The new rules require exchanges and P2P marketplaces to withhold 1% of proceeds from taxable disposals of crypto assets, security tokens, and applicable non-fungible tokens. A 10% withholding rate applies to staking, mining, airdrops, and decentralized finance, while token-to-fiat and fiat-to-token transfers are subject to a 1.5% stamp duty.

Stablecoin sales are exempt from the 1% withholding tax. The withheld amounts are advance payments credited against the taxpayer's final income tax liability. Individuals are taxed at progressive rates, while companies other than small companies face a 30% rate.

The guidelines follow an executive order signed by President Bola Tinubu, which established a Virtual Asset Council to oversee Nigeria's crypto regulations. The NRS and Securities and Exchange Commission serve as vice chairs of the council.