Nigeria Will Begin Taxing Cryptocurrency Transactions
18 Feb, 2025 ● Coin news
Nigeria is preparing to revise its digital asset regulations to impose taxes on cryptocurrency transactions, according to a Feb. 18 report by Bloomberg.
This initiative aims to bring all eligible crypto transactions on regulated exchanges under formal taxation, potentially generating “substantial revenue” for the country.
A proposed bill outlining the taxation framework for crypto transactions, along with other tax-related measures, is currently under review by lawmakers.
The legislation is expected to be passed within this quarter. Nigeria’s National Assembly, which serves as the country’s legislative body, resumed its 2025 session on Jan. 14.
The Nigerian Securities and Exchange Commission (SEC) has also indicated plans to expand crypto licensing, granting more licenses to exchanges to ensure transactions are properly monitored and taxed.
The agency believes this approach will enhance investor confidence and create a more secure environment for crypto users.
In August 2024, Nigeria’s SEC issued its first license to a crypto exchange, marking a step toward regulatory oversight in the nation’s cryptocurrency sector.
The following month, the agency announced its intention to take enforcement action against unregulated exchanges—although, at that time, only two exchanges were officially licensed.
The SEC's involvement in the crypto space also extends to marketing practices.
In December 2024, the agency revised its regulations on crypto advertising to address concerns over social media influencers promoting unregulated crypto products.
Under these new rules, virtual asset service providers must obtain prior approval before working with third-party marketers to promote their offerings.
Nigeria has been at the forefront of cryptocurrency adoption.
A 2024 Perception Survey by Consensys found that 84% of surveyed Nigerians reported owning a crypto wallet.
Additionally, Chainalysis ranked Nigeria second globally in its Geography of Cryptocurrency Report published in October 2024, underscoring the country’s strong engagement with decentralized finance.
Nigerians have also increasingly turned to stablecoins, such as Tether’s USDT and USD Coin, to hedge against inflation and the rapid depreciation of the naira.
According to Chainalysis, between July 2023 and June 2024, Nigeria received $21.8 billion in stablecoins, the highest volume among Sub-Saharan African nations.
Sources:
https://cointelegraph.com/news/nigeria-tax-cryptocurrency-transactions-boost-revenue
https://placng.org/i/national-assembly-resumes-plenary-kicks-off-2025-legislative-session/
