FG Releases New Tax Rules for Bitcoin, Crypto and NFTs in Nigeria
FG Releases New Tax Rules for Bitcoin, Crypto and NFTs in Nigeria
The Nigeria Revenue Service (NRS) has released new guidelines explaining how cryptocurrencies and other virtual assets will be taxed under the Nigeria Tax Act, 2025. The rules cover Bitcoin, Ethereum, stablecoins, NFTs, and other digital assets, making it Nigeria’s most comprehensive tax framework for virtual assets.
The guidelines apply to individuals and businesses involved in cryptocurrency transactions, including investors, traders, exchanges, wallet providers, NFT creators, miners, freelancers paid in crypto, and companies that accept digital assets as payment. However, the eNaira and other Central Bank Digital Currencies (CBDCs) are exempt from the new virtual asset tax rules.
Under the new framework, profits from selling digital assets are subject to income tax, while companies involved in virtual asset businesses will pay 30% Company Income Tax on taxable profits. A 1% withholding tax applies to the sale of cryptocurrencies, security tokens, and NFTs, while a 1.5% stamp duty is charged on conversions between fiat currency and digital assets. VAT remains at 7.5% on services provided by crypto exchanges and other Virtual Asset Service Providers, but not on the digital assets themselves.
The NRS also clarified that simply holding cryptocurrency, transferring assets between personal wallets, minting NFTs, or receiving crypto-backed loans will not trigger tax. However, taxable activities include selling crypto, swapping tokens, receiving salaries or consultancy fees in crypto, mining, staking, DeFi rewards, and NFT sales.
To calculate taxable gains, the NRS introduced a dollar-based method that taxes only the actual investment gain instead of gains caused by the depreciation of the naira. Taxpayers must also keep detailed records of their virtual asset transactions for at least six years.
The guidelines require anyone involved in virtual asset activities to obtain a Tax Identification Number (Tax ID) and file annual tax returns. Crypto exchanges, Virtual Asset Service Providers, and qualifying P2P platforms must deduct and remit applicable taxes, collect stamp duty where necessary, charge VAT on taxable services, and maintain transaction records.
The NRS warned that failure to comply with the new rules could attract heavy penalties, including fines for failing to register, file returns, keep records, deduct or remit taxes, and comply with reporting requirements. Non-compliant Virtual Asset Service Providers and P2P platforms could face fines of up to ₦10 million, while individuals and businesses that fail to pay taxes may also be charged penalties and interest.
