Nigeria's tax agency requires crypto platforms to withhold 1% on disposals and 10% on staking, with some taxes remitted in digital tokens. Stablecoin sales exempt.
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Nigeria’s revenue agency has issued rules requiring crypto platforms and peer-to-peer marketplaces to collect and remit taxes, with some withheld amounts payable in digital tokens.
In its Guidelines on Taxation of Virtual Assets, the Nigeria Revenue Service (NRS) said income tax deducted at source and stamp duty “shall be remitted to the Service in the originating token of the transaction.” Value-added tax, by contrast, must be remitted in the currency used for the payment.
Under the guidelines, platforms must 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.
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. Stablecoin sales are exempt from the 1% withholding tax.
The new guidelines follow an executive order signed by President Bola Tinubu that established a Virtual Asset Council chaired by the central bank, with the NRS and the Securities and Exchange Commission serving as vice chairs. On July 18, the presidency said the NRS would release a policy to implement Nigeria’s tax laws for virtual assets.
Nigeria’s broader tax overhaul took effect on Jan. 1 under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025. The legislation treats digital assets as chargeable assets and requires virtual asset service providers to report transaction details, including customers’ names, contact information and Tax Identification Numbers.
Nigeria first explicitly subjected gains from crypto disposals to tax through the Finance Act 2023, which imposed a flat 10% capital gains tax. The 2025 framework replaced that treatment, while the new guidelines specify how gains are valued and how taxes are withheld, remitted and reconciled.
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