Crypto Taxation in Nigeria: What You Need to Know in 2025

Quick Summary / Key Takeaways

• Effective Jan12026, the Nigeria Tax Act2025 (NTA2025) taxes every crypto sale, trade, or income.
• Cryptocurrencies are classified as securities under the Investments and Securities Act2025, overseen by the SEC.
• Only licensed Virtual Asset Service Providers (VASPs) may offer banking services; Busha is the flagship local exchange.
• Capital Gains Tax (CGT) is applied at the same rate as other assets - 10% for individuals, 30% for corporations.
• Non‑compliance can lead to penalties up to 20% of unpaid tax plus possible criminal prosecution.

Ever wondered how the new Nigeria crypto tax regime will hit your wallet or business? The government just rolled out a full‑blown tax framework, and it’s not optional. Below we break down the legal blueprint, the steps you must take, and the pitfalls that could cost you dearly.

Nigeria is a West African nation with a rapidly growing digital economy. The country’s recent push to formalise crypto activity reflects its ambition to capture billions in untapped tax revenue.

Crypto taxation refers to the set of tax obligations that arise from buying, selling, trading, or earning cryptocurrencies. In Nigeria, this concept finally has a concrete legal home thanks to the NTA2025.

Legal Foundations: NTA2025 and the Securities Act

The cornerstone is the Nigeria Tax Act2025 (NTA2025) a law signed on 26June2025 and effective from 1January2026 that mandates tax on digital assets.. It builds on the 2023 Finance Act, which first named crypto a “chargeable asset”, but NTA2025 removes any doubt - crypto profits are taxable.

Simultaneously, the Investments and Securities Act2025 reclassifies digital tokens as securities, placing them under the jurisdiction of the Securities and Exchange Commission (SEC).. This dual‑track approach means you’ll deal with both tax and securities regulators.

Regulatory Bodies You’ll Deal With

Three agencies are now on your radar:

• Securities and Exchange Commission (SEC) the regulator that issues licences to Virtual Asset Service Providers (VASPs) under its Digital Assets Rules.
• Central Bank of Nigeria (CBN) the nation’s monetary authority that reversed its 2022 crypto ban in Dec2023, allowing banks to service licensed VASPs.
• Federal Inland Revenue Service (FIRS) the tax collection agency that will enforce NTA2025’s capital‑gains provisions.

What Triggers a Tax Event?

Under NTA2025, the following are taxable events:

1. Sale of crypto for fiat (Naira or foreign currency).
2. Swap of one crypto token for another (treated as a disposal of the first asset).
3. Use of crypto to pay for goods, services, or salaries.
4. Receipt of crypto as income, mining rewards, or staking yields.

Each event requires you to calculate the capital gain: proceeds - cost base - allowable expenses. The gains are then subject to the standard CGT rates - 10% for individuals, 30% for companies.

Compliance Checklist for Individuals

• Maintain a detailed ledger (date, amount, crypto type, fiat value, counter‑party).
• Report all disposals on the annual FIRS tax return using the newly added ScheduleC for digital assets.
• If you earn crypto as wages, your employer must withhold tax at the prevailing PAYE rate.
• Consider using a reputable tax‑software that integrates with local exchanges (e.g., Busha’s API).

Compliance Checklist for Businesses

• Obtain a VASP licence from the SEC. The application requires a business plan, AML/KYC policies, and proof of capital.
• Open a corporate bank account with a CBN‑approved bank (e.g., GTBank) - only possible after licence approval.
• Upgrade accounting software to capture crypto transactions in both fiat and token terms.
• File quarterly VAT (if applicable) and annual CGT on all crypto‑derived gains.
• Engage a tax adviser experienced in digital assets to avoid missed deductions.

Licensed Local Exchanges vs. Offshore Platforms

Enforcement Timeline and What Happens If You Slip

The government will start issuing digital filing mandates in January2026. Expect automated cross‑checks between the SEC’s VASP registry and the FIRS tax database. If you miss a filing, the penalty structure is:

1. First offense: 5% of unpaid tax plus 30‑day notice.
2. Second offense within 12months: 15% penalty plus interest.
3. Third offense: up to 20% penalty, possible asset seizure, and criminal charges.

Because banks now must screen VASP licences, a non‑licensed exchange can’t move Naira in or out of the country, effectively cutting you off from the formal economy.

Professional Help: Who to Hire

Given the technicalities, you’ll want a tax adviser who understands both Nigerian tax law and blockchain accounting. Look for professionals with certifications from the Institute of Chartered Accountants of Nigeria (ICAN) plus demonstrable crypto project experience.

Future Outlook

With the NTA2025 aligning with OECD’s Base‑Erosion and Profit‑Shifting (BEPS) framework, Nigeria signals it will stay in step with global standards. Expect periodic updates to the Digital Assets Rules, especially around DeFi yields and NFT royalties. Staying compliant now will future‑proof your operations as the regime matures.