The Nigeria Revenue Service (NRS) has rolled out comprehensive guidelines for the taxation of virtual assets, setting out how cryptocurrencies, non-fungible tokens (NFTs), stablecoins and other digital assets will be taxed in Nigeria.
Issued on August 3, 2026, the framework establishes registration, reporting and record-keeping requirements, valuation principles and compliance obligations for participants in the country’s growing digital asset market.
According to the NRS, the rules apply to taxpayers, virtual asset service providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and anyone involved in virtual asset transactions.
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The agency classified virtual assets into six categories: cryptocurrencies and exchange tokens, stablecoins and payment tokens, security and investment tokens, utility and governance tokens, NFTs and sovereign digital currencies such as the eNaira.
Below are the key highlights of the guidelines:
1. Applicable taxes
The NRS said a single virtual asset transaction may generate more than one tax obligation, depending on the activities involved. These could include income tax, value-added tax (VAT) and stamp duty.
For individuals, taxable income includes profits from disposing of virtual assets, salaries paid in cryptocurrencies, business income, professional and consultancy fees, mining and staking rewards, DeFi earnings, liquidity mining incentives, protocol rewards, royalties and taxable airdrops or hard fork distributions.
The agency said such income must be valued at the fair market value of the virtual asset on the date the taxpayer gains unrestricted ownership or control and reported in annual tax returns with supporting documents.
Companies are also required to pay company income tax on profits earned from cryptocurrency trading, exchange operations, brokerage commissions, custody and wallet services, token issuance, mining, staking, DeFi activities and investment gains.
VASPs must pay company income tax on their revenues while also deducting and remitting applicable taxes where required. The guidelines further extend tax obligations to non-resident entities earning income from Nigerian virtual asset activities, subject to the country’s Significant Economic Presence (SEP) rules.
On VAT, the NRS clarified that transferring ownership of a virtual asset alone is not a taxable supply. However, VAT applies to taxable services linked to virtual assets, including exchange, brokerage, custody, wallet management, listing, advisory and digital platform services.
Where virtual assets are used to pay for taxable goods or services, VAT will apply to the underlying transaction just as it would for payments made in fiat currency.
The guidelines also provide that stamp duty applies to fiat-to-token and token-to-fiat conversions under the Nigeria Tax Act.
2. Taxable and non-taxable events
The framework identifies several transactions that attract tax obligations. These include buying virtual assets with fiat currency, cross-border naira-to-token conversions, selling virtual assets through VASPs or P2P escrow platforms, and using digital assets to purchase goods or services.
The NRS also outlined activities that are not regarded as taxable events.
These include merely holding virtual assets, transferring assets between wallets owned by the same person, staking lock-ups, minting NFTs, tokenising real-world assets without changing beneficial ownership, and obtaining loans backed by virtual assets.
The agency added that transfers of virtual assets themselves do not attract VAT, while the eNaira and other central bank digital currencies (CBDCs) remain outside the scope of the virtual asset tax framework.
3. Applicable rates and collection of tax
Under the guidelines, gains from disposing of virtual assets will be taxed in line with the Nigeria Tax Act. Individuals will pay tax based on the applicable progressive income tax rates, while companies, except those classified as small businesses, will pay the standard 30 per cent company income tax.
A one per cent withholding tax will apply to gross disposal proceeds from cryptocurrencies, security and investment tokens, and NFTs where applicable.
Income earned from staking, mining, DeFi activities and taxable airdrops will attract a 10 per cent withholding tax, while professional and consultancy fees received in virtual assets will be subject to withholding tax at either five or 10 per cent, depending on the transaction.
The framework also fixes stamp duty at 1.5 per cent on token-to-fiat and fiat-to-token conversions. VASPs or VASP-operated P2P marketplaces are responsible for deducting the duty from virtual assets credited to recipients.
In addition, VAT of 7.5 per cent applies to taxable services provided by VASPs.
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4. Tax Obligations
The NRS requires every individual and organisation engaged in virtual asset activities to register for tax purposes and obtain a Tax Identification Number (TIN).
The guidelines also direct VASPs and operators of P2P escrow platforms to make a valid tax ID a mandatory requirement before customers can activate their accounts.
5. Non-compliance
The guidelines prescribe stiff penalties for violations.
Failure to register for tax attracts a fine of N50,000 in the first month and N25,000 for every subsequent month of default. Failure to file tax returns carries a penalty of N100,000 in the first month and N50,000 for each additional month.
Taxpayers that fail to deduct taxes at source face a penalty equal to 40 per cent of the amount not deducted.
VASPs and P2P marketplace operators that fail to comply with the regulations risk a N10 million fine in the first month and N1 million for each subsequent month of continued default.
The NRS also warned that penalties apply for failing to remit taxes, maintain proper records, respond to tax notices, disclose dutiable information or notify the tax authority of changes to a registered address.
Source: Legit.ng