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Nigeria has issued tax guidelines requiring crypto exchanges and peer-to-peer marketplace operators to collect a 1.5% stamp duty on fiat-to-token and token-to-fiat transactions.
The Nigeria Revenue Service released the framework on August 3 to implement the Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025 across cryptocurrencies, stablecoins, and other virtual assets. The guidelines also set income-tax, reporting and registration duties for users and platforms.
Platforms Must Deduct 1.5% From Fiat-Token Conversions
Crypto platforms must calculate and remit the 1.5% duty when customers convert fiat currency into tokens or sell tokens for fiat.
For a user buying Bitcoin or USDT with naira, the platform must deduct the applicable duty from the digital assets credited to the customer’s wallet. The guidance should be followed separately for token-to-fiat transactions according to the prescribed collection process.
The duty applies to the conversion transaction and is separate from income tax or tax on gains. Profits and other taxable earnings from digital-asset activity remain subject to the relevant provisions of Nigeria’s tax laws.
Staking, Mining and DeFi Rewards May Face 10% Withholding
The guidelines cover income from staking, mining, airdrops and decentralized finance rewards. Depending on the payment and taxpayer, those earnings may attract withholding tax of up to 10%.
Professional and consultancy fees paid in cryptocurrency may also face withholding at rates of 5% or 10%. Platforms must apply 7.5% value-added tax to their service fees rather than the full value of customers’ crypto transactions.
Nigeria’s tax law also requires virtual-asset participants to keep transaction records and value assets using the prevailing market price at the time of each taxable transaction.
VASPs Face ₦10M First-Month Penalty for Non-Compliance
Virtual asset service providers must register for tax purposes, file customer transaction information and maintain records covering dates, asset types, values and participating parties. The requirements also apply to P2P marketplace operators.
Non-compliant platforms face a ₦10 million penalty for the first month of default and an additional ₦1 million for every subsequent month until the breach is corrected.
The guidelines follow a July executive order establishing a Virtual Asset Council to coordinate the revenue service, central bank and securities regulator. The council was directed to prepare a harmonized implementation framework for the sector.
