Nigeria Issues New Tax Rules for Crypto Platforms and P2P Marketplaces
Guidelines require platforms to withhold, report, and remit taxes, with some amounts payable in digital tokens.
L'essentiel
Nigeria Revenue Service issued guidelines requiring crypto platforms and P2P marketplaces to collect, report, and remit taxes, with specific withholding rates for disposals, staking, and transfers.
Résumé généré par IA
Pourquoi c'est important
Nigeria introduced a broader tax overhaul on Jan. 1 under the Nigeria Tax Act and Nigeria Tax Administration Act of 2025.
Nigeria’s revenue agency has issued rules requiring crypto platforms and peer-to-peer (P2P) marketplaces to collect, report and remit taxes, including paying some withheld amounts 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.
The guidelines place exchanges and P2P marketplaces at the center of withholding, reporting and remittance under the country’s existing laws.
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.
Nigeria’s crypto tax framework takes shape
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 that 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.
Related: South Africa proposes crypto tax guidance under existing framework
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.
Questions ouvertes
- How will platforms technically remit taxes in digital tokens?
- What enforcement actions await non-compliant P2P marketplaces?
