Nigeria issues tax rules for crypto and other virtual assets

Nigeria’s tax authority has released on how virtual assets will be taxed, providing clarity for investors, exchanges, and businesses operating in the country’s digital asset market.

The guidelines implement provisions contained in the Nigeria Revenue Service (Establishment) Act 2025, the Nigeria Tax Act, and the Nigeria Tax Administration Act 2025. They also follow President Bola Tinubu’s executive order establishing the Virtual Assets Executive Council to strengthen oversight of the sector.

The framework classifies virtual assets into six categories: cryptocurrencies and exchange tokens, stablecoins and payment tokens, security and investment tokens, utility and governance tokens, non-fungible tokens (NFTs), and sovereign digital currencies.

Under the new rules, gains from the disposal of virtual assets are taxable and may also attract stamp duty where applicable. Stablecoins that generate investment returns will also be subject to income tax.

Individuals who receive salaries or professional fees in virtual assets must declare that income when filing annual tax returns. The same applies to income earned through mining, staking, and airdrops. Where employers pay salaries in virtual assets, they must report the payment and its US dollar value on the date it was made.

For businesses, taxable income includes profits from trading virtual assets, operating exchanges, providing custody services, and earning transaction fees as a virtual asset service provider (VASP).

The guidelines also clarify the VAT treatment of digital assets. Buying, selling, or transferring a virtual asset does not, on its own, attract VAT. However, services connected to those transactions such as exchange fees, custody, wallet management, brokerage, and advisory services remain subject to VAT.

The rules also spell out how taxes should be collected. Individuals are expected to self-assess and pay tax on gains from disposing of virtual assets.

However, certain taxes, including withholding tax on qualifying professional and consultancy payments made in virtual assets, must be deducted at source.

Where the payer is outside Nigeria or fails to withhold the tax, the recipient remains responsible for declaring the income and paying the tax during the annual self-assessment process.

Last updated: August 3, 2026