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

Crypto taxation in Nigeria is a brand‑new legal landscape that kicked in on January12026, after the Nigeria Tax Act 2025 (NTA2025) was signed into law by President Bola Ahmed Tinubu in June2025. The act finally puts digital assets under the same tax net as traditional investments, turning a previously gray area into a clear set of rules for anyone buying, selling, mining, or earning crypto in the country.

TL;DR - Quick Takeaways

• Effective1Jan2026, all crypto disposals are subject to capital gains tax.
• Licensed crypto firms must register as Virtual Asset Service Providers (VASPs) with the SEC.
• Banks can now service regulated crypto businesses - making transactions traceable for tax purposes.
• Individuals report crypto gains on their annual income tax return; businesses file quarterly corporate tax returns.
• Professional advice is strongly recommended; penalties for non‑compliance can reach10% of undeclared tax.

Legal Classification and the Regulatory Stack

The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) now share oversight of digital assets. The Investments and Securities Act 2025 (ISA) officially labels cryptocurrencies, utility tokens, security tokens, and even NFTs as securities. That means every token you hold falls under the SEC’s Digital Assets Rules, which require crypto businesses to secure a VASP license.

Why does the classification matter? Securities are already subject to rigorous reporting, anti‑money‑laundering (AML) checks, and now, tax collection. By treating crypto as a security, Nigeria eliminates the regulatory vacuum that made tax evasion easy in the past.

What Exactly Gets Taxed?

The NTA2025 defines three core taxable events for crypto:

1. Disposal - selling, swapping, or gifting a crypto asset.
2. Income generation - mining rewards, staking yields, or payments received in crypto for services.
3. Conversion - exchanging crypto for fiat or another digital asset that results in a market‑value change.

All disposals trigger Capital Gains Tax (CGT). The rate aligns with the standard 10% CGT on other capital assets, but the law allows a ₦200,000 annual exemption for total crypto gains. Income from mining or staking is taxed as ordinary income at the individual’s marginal rate (up to 24%).

Compliance Roadmap for Individuals

If you’re a regular investor, here’s the step‑by‑step checklist:

• Track every acquisition date, cost basis, and market value at the time of disposal. Even small trades on peer‑to‑peer platforms count.
• Calculate net gains or losses for the fiscal year (April1-March31). Net losses can offset other capital gains but not ordinary income.
• Report the net figure on the annual personal income tax return (FormITR‑1). Use the “Other Capital Gains” section and attach a detailed crypto ledger.
• If you earned crypto as salary or freelance payment, declare the fair market value in Naira on the same return, just like cash income.
• Keep supporting documents - exchange statements, wallet screenshots, and transaction hashes - for at least five years.

Failure to report can trigger a 10% penalty on the unpaid tax plus interest. The Federal Inland Revenue Service (FIRS) now runs a digital audit platform that can cross‑check exchanges’ data feeds with individual filings.

Compliance Roadmap for Crypto Businesses

Running a crypto exchange, payment gateway, or mining operation means you’re a Virtual Asset Service Provider (VASP). The compliance checklist expands considerably:

1. Obtain a VASP license from the SEC. The application requires proof of AML/KYC systems, a minimum capital reserve of ₦2billion, and a fitted IT security audit.
2. Register with the CBN as a “crypto‑enabled” financial institution. This unlocks the ability to hold Naira accounts and process fiat‑crypto conversions.
3. Integrate crypto accounting modules into your ERP. Every transaction - from user deposits to internal payroll paid in crypto - must flow into a ledger that tags the transaction type (sale, purchase, fee, reward).
4. File quarterly corporate tax returns (FormCT‑4) with a schedule that details:
• Gross crypto revenue (trading fees, spread, mining income).
• Deductible expenses (hosting, electricity, security).
• Capital gains on the company’s own holdings.
5. Submit an annual “Digital Asset Tax Annex” to FIRS, attaching extracted data from your blockchain analytics tool (e.g., Chainalysis, CipherTrace) that maps wallet addresses to customer IDs.
6. Maintain a dedicated compliance officer who files monthly AML reports to both the SEC and CBN.

Non‑compliant VASPs face license revocation, a ₦5million fine, and possible imprisonment for senior executives.

Banking Integration - The New Financial Pathway

The December2023 VASP Guidelines from the CBN reversed the earlier ban on banks dealing with crypto firms. Now, licensed banks can open current accounts for VASPs, provide SWIFT services, and issue debit cards linked to crypto wallets. This creates a traceable money trail:

• Customers deposit Naira → Bank → VASP wallet.
• VASP converts Naira to crypto, executes trades, then records the fiat outflow back to the bank.

Regulators monitor these flows via the CBN’s real‑time reporting gateway, which automatically flags transactions exceeding ₦5million for review.

Licensed Local Exchanges - Example: Busha

One of the first approved exchanges is Busha. Busha complies with the SEC’s Digital Assets Rules, holds a VASP license, and partners with several commercial banks. Because Busha’s APIs feed transaction data directly to the tax authority’s dashboard, users on the platform receive an auto‑generated annual crypto tax statement that can be uploaded with a single click.

Implementation Timeline and Enforcement

The government gave a six‑month grace period to let the ecosystem catch up. Key dates:

• 1Jan2026 - Taxable events become enforceable.
• 30Jun2026 - All VASPs must be fully registered and reporting.
• 31Dec2026 - First mandatory quarterly corporate filings under the new regime.

Enforcement tools include:

• Automated blockchain analytics linked to the FIRS audit portal.
• Cross‑border data sharing agreements with the OECD’s Global Forum on Transparency.
• Sting operations targeting offshore exchanges that refuse local licensing.

Penalties scale with the severity of non‑compliance: a first‑time omission might attract a 5% surcharge, while willful tax evasion can lead to a 10% fine plus possible criminal prosecution.

Common Pitfalls and Pro Tips

• Missing the ₦200,000 exemption. If your total gains are below this threshold, you still need to file a “nil” return to claim the exemption.
• Using offshore wallets only. The law treats foreign‑hosted assets the same as domestic ones; you must still report gains, and the CBN can request transaction logs from foreign exchanges under mutual‑legal‑assistance treaties.
• Forgetting staking income. Many investors ignore the fact that staking rewards are taxable as ordinary income when earned, not when sold.
• Relying on informal record‑keeping. Spreadsheet logs can be disputed. Adopt a dedicated crypto accounting software that timestamps each entry and stores the original blockchain receipt.
• Skipping professional advice. A tax advisor familiar with the NTA2025 can help you structure crypto holdings (e.g., using a holding company) to legally reduce tax liability.

Comparison of Tax Obligations: Individuals vs. Businesses

Next Steps for Different Personas

For casual investors: Open a spreadsheet, link it to your exchange API, and start tracking cost basis. When the 2026 tax year ends, export the CSV and hand it to a CPA familiar with crypto.

For freelancers paid in crypto: Convert each payment to Naira at the day's spot rate, record the amount as ordinary income, and keep the receipt for your tax return.

For startup founders: Secure a VASP license early, partner with a CBN‑approved bank, and embed a crypto‑ready accounting module from day one. Early compliance saves you from costly license revocation later.

For established exchanges: Run a compliance audit now, map every wallet address to a customer ID, and submit the first quarterly filing before 30Jun2026.

Frequently Asked Questions

Do I need to pay tax if I never sell my crypto?

Only disposals (selling, swapping, gifting) trigger capital gains tax. However, any crypto you earn as income - like mining rewards or freelance payments - is taxable the moment you receive it, even if you hold it afterward.

Can I use an offshore exchange and avoid Nigerian tax?

No. The NTA2025 treats foreign‑hosted crypto the same as domestic. The CBN can request transaction logs from foreign exchanges under existing mutual‑legal‑assistance treaties, and FIRS can still assess tax on the gains.

What is the ₦200,000 exemption?

If your total net crypto gains for the year are less than ₦200,000, you don’t owe capital gains tax. You still must file a “nil” return to claim the exemption, otherwise the tax authority may assume you earned taxable income.

How often must a VASP file its tax returns?

Vasps file quarterly corporate tax returns (FormCT‑4) and submit an annual Digital Asset Tax Annex. Missing a quarterly deadline triggers a 5% surcharge on the unpaid amount.

Are staking rewards considered capital gains?

Staking rewards are treated as ordinary income at the time they are received. If you later sell the staked tokens, that sale is a separate capital gains event.

13 comment

24 October, 2024

Oreoluwa Towoju

If you’re just getting started, the key is to keep a simple spreadsheet of every buy, sell, and staking reward, and make sure you note the Naira value on the transaction date.

24 October, 2024

Jason Brittin

Nice tip, Oreoluwa 👏-but remember the crypto‑tax calculator on the page isn’t a magic wand; you still have to feed it accurate numbers or it’ll spit out nonsense. 😅

24 October, 2024

Amie Wilensky

Ah, the classic "feed it numbers" mantra-does one not realize that the on‑chain data itself is immutable, immutable, immutable, yet human error still creeps in, like mis‑labeling a staking reward as a capital gain, thereby inflating the taxable base!

24 October, 2024

MD Razu

One of the most overlooked aspects of the new Nigerian framework is the interaction between the corporate‑level 30% tax and the 10% CGT on a VASP’s own holdings; many businesses mistakenly assume the two are mutually exclusive, when in fact they stack, creating an effective rate that can exceed 35% on profitable trades.
First, the law mandates that every crypto transaction, whether it's a swap, a fee, or a payout, be recorded in an integrated accounting module that timestamps the event and maps the wallet address to a known customer ID.
Second, the mandatory quarterly filing means that cash‑flow projections must incorporate tax liabilities as they accrue, not just at year‑end.
Third, the ₦200,000 exemption only applies to individual investors; corporate entities receive no such blanket relief and must pay CGT on the full net gain.
Fourth, staking rewards paid to employees are treated as salary, subject to PAYE and the 24% marginal rate, which dramatically changes the cost‑benefit analysis of running a proof‑of‑stake validator in Nigeria.
Fifth, any foreign‑hosted wallets are still within the tax net; the CBN can issue a data‑request under the existing Mutual Legal Assistance Treaty to pull transaction logs from offshore exchanges.
Sixth, the new real‑time reporting gateway flags any single transaction exceeding ₦5 million, but the threshold also applies cumulatively over a 30‑day window, meaning a series of smaller transfers can trigger an audit.
Seventh, the penalty schedule is steep: a first‑time omission is a 5% surcharge, but willful evasion attracts a 10% fine plus possible criminal prosecution, which is a serious deterrent.
Eighth, the requirement for a VASP license includes a minimum capital reserve of ₦2 billion-far beyond the reach of most startups, pushing them toward partnership models with established banks.
Ninth, the SEC now treats NFTs as securities, so any sale of digital art must be reported as a capital gain, even if the piece was never marketed as an investment.
Tenth, the regulatory overlap between the SEC and CBN can cause duplicated reporting requirements; companies should appoint a compliance officer who can navigate both AML/KYC submissions and tax annex filings.
Eleventh, the annual “Digital Asset Tax Annex” must be signed off by a certified public accountant who is familiar with blockchain analytics tools such as Chainalysis, otherwise the filing is deemed incomplete.
Twelfth, while the law mentions a “cryptocurrency‑enabled” bank account, many traditional banks still delay onboarding VASPs, creating a bottleneck for cash‑in‑cash‑out operations.
Thirteenth, the tax authority now cross‑references exchange API feeds with individual filings, so manually entered spreadsheets are at a high risk of discrepancy.
Fourteenth, the exemption for individuals does not apply to freelancers paid in crypto; the fair market value on receipt date must be declared as ordinary income.
Fifteenth, the overall effect is that compliance costs are rising sharply, and entities that ignore the framework risk not only financial penalties but also reputational damage that could jeopardize future investment.

25 October, 2024

Bobby Ferew

From a tax‑engineering perspective, the interplay between the marginal income tax ceiling (24%) and the flat 10% CGT creates an optimization problem akin to portfolio allocation-strategically timing disposals to stay under the ₦200k exemption can shave off a substantial chunk of liability.

25 October, 2024

celester Johnson

While the math looks elegant, in practice most Nigerian traders lack sophisticated software to execute such micro‑timing, meaning the theoretical savings often evaporate in the friction of manual record‑keeping.

25 October, 2024

Prince Chaudhary

Banks finally playing nice with crypto, finally.

25 October, 2024

John Kinh

Sure, let’s all trust the government to perfectly track every “off‑shore” transaction-what could possibly go wrong? 🤔

25 October, 2024

Mark Camden

It is incumbent upon every citizen to uphold the fiscal responsibilities bestowed upon them by law; willful neglect of newly enacted tax provisions not only undermines communal equity but also erodes the very foundation of our civil society.

25 October, 2024

Evie View

Honestly, the whole thing feels like a bureaucratic nightmare that will push every serious trader offshore where they can hide from the tax man.

25 October, 2024

Kate Roberge

Right, because moving all that crypto to a foreign exchange automatically makes you a tax‑evader, not a savvy investor navigating a complex market.

25 October, 2024

Charles Banks Jr.

Look, the regulations are here to stay, so instead of whining, start using a proper crypto‑accounting tool-your future self will thank you when the audit hits.

26 October, 2024

Ben Dwyer

Take it step by step: set up a simple ledger, record each trade, run the calculator, and then hand everything to a CPA who knows the Nigerian crypto rules. You’ve got this!