Nigeria -- Cryptocurrency Tax Framework Regulatory Overview

In Nigeria, cryptocurrencies and digital assets are treated as chargeable assets under the Finance Act 2023, subjecting gains from their disposal to a 10% Capital Gains Tax (CGT) for both individuals and businesses. Income from activities like mining, staking, or DeFi may be taxed as personal or business income at progressive rates of 0-25% (individuals) or corporate rates, while VAT applies at 7.5% on certain transactions.[1][2][3][4]

Capital Gains Tax (CGT)

Digital assets, including cryptocurrencies and NFTs, qualify as chargeable assets per amendments to Section 3(a) of the CGT Act via Finance Act 2023 (effective May 1, 2023).[1][2]

• Rate: Flat 10% on gains (sales proceeds minus allowable disposal expenses).[1][2][3][4]
• Applies to disposal via sale, exchange for fiat/other crypto, or use for goods/services.[1][4]
• Losses offset only crypto gains, not other income.[4]
• Entities must compute, pay, and file self-assessment returns twice yearly (by June 30 and December 31).[1]

Income Tax on Crypto

• Trading/investing gains: Often CGT if capital in nature; frequent trading may be income.[3][4]
• Mining, staking, DeFi rewards: Taxed as income; individuals at 0-25% progressive rates (0% if under ₦800,000/year); miners may be self-employed.[3][4]
• Businesses/corporates: Standard corporate income tax applies to crypto-derived profits.[4]

VAT/GST Treatment

• Standard rate of 7.5% on taxable supplies involving crypto (e.g., services or goods bought with crypto).[3]
• Withholding Tax (WHT) of 5-10% may apply to certain crypto-related services.[3]

Reporting Requirements

• Individuals: Report CGT/income via personal income tax returns; track disposals for self-assessment.[1][4]
• Businesses/Entities: File CGT returns biannually; include crypto in annual tax filings under FIRS rules.[1]
• All taxpayers must maintain records of transactions for FIRS audits; non-residents with Nigerian gains are liable.[2]

Crypto-Specific Legislation

• Finance Act 2023: First explicit inclusion of digital assets in CGT Act; effective May 1, 2023.[1][2][4]
• Investments and Securities Act (ISA) 2025: Classifies digital assets as securities, reinforcing taxability.[4]
• Overseen by Federal Inland Revenue Service (FIRS) as primary tax authority (no direct FIRS crypto page in results; general guidance via Finance Acts).[1][2]
• SEC Nigeria regulates exchanges via ARIP/RI programs but defers tax to FIRS.[1]

Key sources:

• [1] stransact.com/insights/... (SEC & Finance Act 2023 details)
• [2] allmultidisciplinaryjournal.com/uploads/archives/20240730153416_E-23-107.1.pdf (Academic CGT analysis)
• [3] taxnatives.com/jurisdiction/nigeria/crypto-tax-advice/ (Tax rates table)
• [4] busha.io/blog/how-nigerias-tax-law-affects-your-crypto (NTA 2025 & ISA updates)

Consult FIRS or a tax advisor for personalized advice, as rules evolve (e.g., post-2025 clarifications).[3]