Cryptocurrency has become mainstream in Nigeria with the country boasting of over 26 million users. Nigeria recorded close to $22 billion worth of transactions recorded between July 2023 and June 2025 alone and the government has now moved to make sure that profits and earnings from crypto activities are taxed like other forms of income and investments.

Until recently, there was a lot of uncertainty about how crypto should be taxed. Many Nigerians traded and invested in Bitcoin, Ethereum, and other tokens without clear rules on tax reporting or payment. This has changed. New laws now include cryptocurrencies under Nigeria’s tax system and make it clear that tax must be paid on gains, earnings, and certain transactions.

In this article, we explain who is in charge of crypto tax in Nigeria, how the laws treat digital assets, what types of taxes apply, special rules for different users, how to report and pay your crypto taxes, and what happens if you do not comply.

Who is in Charge of Crypto Tax in Nigeria?

Crypto Tax in Nigeria

The main authority responsible for collecting taxes on cryptocurrency activity in Nigeria is the Nigeria Revenue Service (NRS). The NRS is the successor to the Federal Inland Revenue Service and now handles all federal tax collection, including taxes on income and asset gains. Recent reforms under the Nigeria Tax Administration Act and other tax laws make it clear that profits and income from digital assets must be reported and taxed.

Alongside the NRS, the Securities and Exchange Commission (SEC) has regulatory oversight of crypto exchanges and service providers. Crypto platforms such as exchanges are required to register with regulatory authorities, gather detailed identification from users, and submit transaction reports. These steps ensure that the tax authority can track taxable crypto activity and enforce compliance.

How Nigeria Treats Cryptocurrency

Cryptocurrency is not legal tender in Nigeria and this means the Nigerian naira remains the only recognised money for everyday transactions in the country. Crypto assets are treated as digital property or digital assets rather than currency. That distinction matters because it determines how crypto is taxed when it changes hands or generates profit.

Nigeria’s tax reforms, including the Finance Act 2023, explicitly include digital assets like Bitcoin and Ethereum under capital gains tax laws because crypto is defined as a digital asset. This means profits from selling these assets or gains from their disposal are taxable just like gains from selling stocks or real estate.

This treatment does not affect the legality of owning crypto or participating in trading and investing. Instead, it brings crypto within the tax framework so that gains, earnings, and economic activity around these assets are no longer outside the formal economy.

Types of Crypto Tax

1. Capital gains tax

When you sell or dispose of cryptocurrency for a profit, the profit is usually subject to Capital Gains Tax (CGT) in Nigeria. The Finance Act 2023 amended the Capital Gains Tax Act to include digital assets as taxable assets. Under this rule, if you sell crypto and make a profit, that profit attracts a 10% CGT.

For example, if you buy Bitcoin at one price and later sell it at a higher price, the difference between those values is a gain and is subject to CGT. Disposing of crypto by exchanging it for another cryptocurrency, converting it to naira, or using it to buy goods or services can also trigger CGT if there is a gain.

2. Income tax

If you receive cryptocurrency as income, it is taxed the same way as other income. Income tax applies when you earn crypto through work, mining, staking rewards, airdrops, freelancing, or receiving payment for goods and services. The crypto’s fair market value at the time of receipt is considered part of your taxable income. This means that if your employer pays you in crypto, you must convert that payment to its naira value at the date of receipt and include it in your income tax return.

Similarly, if you mine crypto or receive rewards from staking or DeFi activities, the value of what you receive counts as taxable income.

3. Value-added tax (VAT)

Nigeria also applies Value Added Tax (VAT) to service fees charged by crypto platforms and exchanges. In 2024, the Federal Inland Revenue Service introduced a 7.5% VAT on transaction fees associated with crypto activity. This VAT applies to the fee portion of transactions, not the value of the cryptocurrency itself.

For example, when a crypto exchange charges a trading fee, that fee may attract VAT. This does not mean the full crypto trade value is taxed as VAT but that the service fee component is. This brings crypto platform services into the regular VAT regime in Nigeria.

Special Rules for Different Kinds of Users

1. Individual crypto traders

You must pay tax on gains if you trade cryptocurrency for profit as an individual. This involves tracking your purchases, sales, swaps, and any disposals of digital assets during the year.

For each taxable event, you must calculate the gain and report it on your personal tax return. Keeping accurate records of the cost and sale value in naira is essential for correct tax reporting.

2. Crypto businesses and exchanges

Crypto exchanges and businesses that operate in Nigeria have additional responsibilities. They must register with tax authorities, collect user identification data including TIN and NIN, and submit detailed transaction reports monthly. These reports include asset types, transaction values, dates, and user contact details. This helps the tax authority tie individual activity to declared income or gains.

3. Miners, stakers, and crypto earners

The value of the crypto when it is received is treated as taxable income if you earn crypto through mining, staking, rewards, airdrops, or as payment for services. This means you include that value in your income tax return just like wage income or business income. Airdrops and rewards may also be taxable depending on the circumstances of how they are received.

4. Freelancers and service providers paid in crypto

Anyone who receives crypto as payment for goods or services must treat it as income. The Naira value of the crypto at the time of payment is what matters for tax purposes, not the value at a later date.

Crypto Tax Reporting and Compliance Requirements

Reporting your crypto tax in Nigeria requires detailed record-keeping of all transactions. You need to record the date, amount, and Naira value of every crypto transaction, whether it is a trade, sale, swap, income receipt, or mining reward. This information forms the basis of your tax calculation when you file your returns.

Crypto platforms must also report transaction and identity data to the tax authorities monthly. These reports include customer names, identification details such as TIN and NIN, and transaction values. This reporting effort ensures that individuals and businesses cannot easily escape tax obligations by hiding activity on exchanges. Taxpayers need to file accurate returns and meet filing deadlines as missing deadlines can trigger penalties.

How to File Your Crypto Tax in Nigeria

  1. Gather all your crypto transaction records for the year, including sales, swaps, income received, rewards earned, and exchange fees, making sure each entry shows the date, amount, Naira value, and purpose.
  2. Sort every transaction into capital gains or losses, income earned from work or rewards, and any other taxable fees or events.
  3. Convert all transaction amounts to naira using the official exchange rate on the date each transaction occurred.
  4. Log in to the Nigeria Revenue Service TaxPro-Max system and enter your crypto details under the appropriate personal or business tax forms.
  5. Review the calculated tax amount and make payment online or through an approved bank before the filing deadline.
  6. Save all submission confirmations and payment receipts in case the tax authority requests verification later.

What Happens If You Don’t Pay Crypto Tax in Nigeria?

Failure to pay crypto tax in Nigeria can have serious consequences. If you do not file accurate returns or make tax payments, you risk fines, interest charges on unpaid amounts, and potential enforcement actions. The penalties for non-compliance are designed to encourage full reporting and timely payment of taxes.

Platforms that fail to comply with reporting requirements face heavy fines and possible licence revocation. Individuals and businesses may receive notices, have their accounts audited, or be taken to court for tax evasion. These steps are part of Nigeria’s broader effort to strengthen tax compliance in the digital economy.

Frequently Asked Questions (FAQs) on Crypto Tax in Nigeria

1. Is crypto taxed in Nigeria?

Yes. Crypto assets are treated as digital property or assets, and gains from their disposal are taxable under the Capital Gains Tax Act. Crypto earnings are taxed as regular income.

2. Does buying crypto trigger tax?

Buying crypto with naira does not usually trigger a tax event. Tax applies when you make gains upon disposal or receive crypto as income.

3. Are crypto exchange fees subject to tax?

While the asset is not subject to VAT, fees charged by exchanges may attract 7.5%VAT.

4. Can crypto losses reduce tax?

You can use the loss to offset gains in the same tax year if you make a capital loss rather than a gain. Proper record keeping is essential to claim these adjustments.

5. Do P2P trades require reporting?

Yes. Regardless of trade type, transactions that generate gains or income must be reported on your tax return.

Conclusion

Crypto tax in Nigeria is now clearly defined as the government now treats digital assets as taxable property and income under existing tax laws. With recent reforms and reporting requirements, both individuals and businesses must track and report crypto gains and earnings to stay compliant. The introduction of mandatory TIN and NIN reporting and monthly exchange reporting aligns Nigeria with global tax standards and ensures that digital asset income is properly captured.

If you trade, earn, or use crypto in Nigeria, it is important to keep organised records, understand the tax rules, file accurately on time, and make payments through official channels. Staying informed and compliant protects you from penalties and helps integrate crypto into Nigeria’s formal economy.