Amid a surge in digital-asset activity nationwide, new fiscal rules now apply and every trader, investor, and app user must ensure full compliance. This rewritten guide walks through how Nigeria taxes cryptocurrencies, what the authorities expect from you, and practical steps to remain compliant while managing your wallet and naira conversions.
For clarity and simplicity, you’ll find plain explanations of current rates, reporting obligations, deadlines, and lawful ways to reduce your bill. You will also see how to file, what penalties look like, and where a secure platform can help you keep transaction records tidy and audit-ready.
Who Handles Crypto Tax Compliance in Nigeria?
Within Nigeria’s framework, two public bodies oversee different parts of the regime for cryptocurrencies and related services. One is responsible for collection and administration, while the other supervises the market and licensed platforms.
- Federal Inland Revenue Service (FIRS)
- Securities and Exchange Commission (SEC)
As the principal authority, FIRS administers assessments, collects the applicable levies, and enforces compliance. The SEC, by contrast, supervises exchanges, wallet providers, and other virtual-asset businesses to protect the user and the broader market.
Taxation for digital assets entered the system via the Finance Act of 2023, which brought cryptocurrencies within scope. Further adjustments came with the Investments and Securities Act in 2025, treating certain tokens as securities for regulatory purposes and tightening oversight on the network of providers.
How Nigeria Treats Cryptocurrencies Under Law
Under Nigerian rules, digital coins are not recognized as legal tender; they are viewed as property. You cannot treat bitcoin like cash at the supermarket, but you can hold it as an asset within a wallet, just as you might keep shares or land.
Because it is treated as property, a profit realized when you dispose of your tokens—by selling, swapping, or spending—can become taxable. Think of it as similar to gains that arise from selling other types of investment.
Before looking at reporting, it helps to understand which taxes may affect a crypto user in practice.
The Main Crypto Taxes You Should Know
In Nigeria’s system, there are three common categories that can apply to digital assets. The specific charge depends on what you did, how you earned or realized value, and whether you operate as an individual or a business on a platform.
1) CGT on Realised Gains
During 2024, the headline charge on net gains was set at ten percent; by 2026, those gains for individuals move under personal tax bands that can climb to roughly a quarter. This only applies when an asset is disposed of for more than its cost basis after fees.
Imagine buying bitcoin at ₦500,000 and later exiting at ₦700,000. The gain—₦200,000—would be the figure used to compute the levy, yielding a ₦20,000 obligation under the ten-percent rule. Always convert to naira at the time of each transaction to ensure accurate calculation.
2) Personal Income Taxes
Earnings arising as income are assessed at progressive rates that generally range from about seven percent to as high as twenty-five percent depending on total annual income. This can capture activities such as mining payouts, staking distributions, airdropped tokens, and remuneration received in crypto.
Where digital coins function as consideration for regular business operations—say, payments received for services—those receipts are treated like standard income. Keep careful transaction records in your wallet and note the naira equivalent on the date you were credited on the network.
3) VAT on Platform Fees
Value-added tax at seven and a half percent may be embedded within service fees charged by exchanges or similar providers; the charge doesn’t apply to the asset itself. Breet, for instance, applies zero trading fees, helping the user reduce friction on each transaction.
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Special Rules for Different Types of Users
Obligations vary based on your profile—individual trader, business operator, or a participant earning rewards. Review the points below to ensure your compliance approach fits your situation.
Individuals
- When trades produce profits, the gain is chargeable under CGT rules.
- Single or aggregated crypto transactions that exceed ₦5,000,000 must be reported as required.
- An annual exemption of ₦10,000 may reduce your total gains subject to CGT.
- Losses from disposals within the same year can reduce taxable gains, subject to the rules.
Cryptocurrency Businesses and VASPs
- Profits are generally subject to corporate income tax at a thirty-percent rate.
- Registration with both the SEC and FIRS is mandatory before operations commence.
- Detailed, secure records must be maintained for every transaction and invoice.
- Penalties can start at ₦10,000,000 for the first month of non-compliance, with further charges afterward.
Miners and Stakers
- Block rewards and staking distributions are treated as ordinary income when received.
- Progressive personal tax rates apply on those earnings, depending on total income.
- Eligible business costs—such as equipment, power, and professional services—may be deductible.
Reporting and Compliance Requirements for Every User
For proper compliance, everyone dealing with digital assets should record the following details and keep them aligned with each transaction in their wallet or platform account.
- Dates for each event—purchase, sale, swap, income received, or transfer.
- Quantities moved and the type of token involved in the transaction.
- The naira value as at the time of the event; if balances are shown in USD or cedis, convert to naira using an appropriate rate.
- The reason for the movement—trading, long-term holding, or use in business activities.
Deadlines to keep in view include the dates below; missing them can create avoidable costs and risk to compliance.
- Individuals: file returns and settle taxes by March 31 each year.
- Companies: submit returns and pay by June 30 each year.
In the event of late filing or payment, the minimum penalty typically starts from ₦10,000 or five percent of the outstanding amount, whichever is greater, and can escalate if you delay further.
How to File on the Official Platform
Using FIRS’ TaxPro-Max online system, you can upload your transaction records, compute your liability, make secure electronic payments, and track whether you remain compliant after each update. Keep your privacy policy and documentation consistent with the information you submit.
How to Reduce Your Crypto Tax Burden, Legally
To lower your taxes without risking penalties, consider the following practical approaches. These tactics rely on accurate data, thoughtful timing, and proper use of available reliefs while staying within the rules.
1) Keep Detailed Records
- Comprehensive histories from a platform such as Breet make reconciliation simpler for the user.
- Take screenshots or store receipts so every transaction has evidence attached.
- Log the naira valuation and any relevant fees on the exact date of each movement.
2) Claim Deductions That Are Allowed
- Record eligible mining costs, including equipment and energy for financing operations.
- Include exchange and wallet fees that relate directly to your transactions.
- Account for professional advisory costs where they relate to compliance work.
- Use realized losses to offset gains where the rules permit.
3) Use Available Exemptions
- Apply the ₦10,000 annual CGT allowance available to individuals.
- Where applicable, small-company relief may apply if turnover is below ₦100,000,000.
4) Plan Transactions With Intent
- Consider splitting large disposals across tax years to manage your bill.
- Harvest losses in a down market to reduce taxable gains in the same period.
- Make the most of the yearly CGT allowance as part of your plan.
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What Happens If You Skip Crypto Taxes in Nigeria (KYC Enforcement)
Following legislative changes, digital assets face explicit taxation, and FIRS has increased scrutiny across the ecosystem. Stronger enforcement tools now help connect user identities with on-chain activity, tightening the net around non-reporting.
The 2023 law introduced a ten-percent charge on profits from disposals, while the 2025 tax-administration reform granted broader enforcement powers. Together, these measures allow authorities to push for stricter compliance and quicker penalties where necessary.
Major platforms have come under attention—Binance’s experience is one example—and investigators now leverage exchange KYC, inter-agency data sharing, and blockchain analytics to connect transactions to specific users. In short, hiding behind pseudonyms is far harder.
Sanctions can begin at roughly ₦10,000 but may rise significantly depending on the case. Licensed service providers—VASPs—may see penalties of ₦10,000,000 for the first month of non-compliance and ₦1,000,000 for each additional month.
For individuals, deliberate evasion can lead to steeper fines or even prosecution. Although some measures phase in through 2026, enforcement is already active, and waiting is not a safe option.
The safest path is straightforward: keep reliable records, compute gains correctly, and include them when you file. If you operate a business, update internal compliance policies and ensure verification workflows are documented. Where past reporting is incomplete, seek a qualified adviser and consider voluntary disclosure early.
Upcoming Crypto Tax Update for Users
- Higher Taxes on Individual Transactions
Going forward, profits from disposals by individuals won’t remain under the prior ten-percent flat CGT approach; instead, they will be treated as chargeable gains within the personal tax bands, which can reach about twenty-five percent.
This replaces the earlier, lighter rule and places digital-asset earnings alongside other personal and corporate income streams in the tax code.
- Exchanges Face Strict Reporting Rules by 2026
Beginning January 1, 2026, crypto exchanges operating in Nigeria will be required to submit transaction-level data for every user to the tax authority. Non-compliance can threaten a platform’s license and operational status.
(See full 2025 tax reform in Nigeria here)
Crypto Tax in Nigeria: What Is Expected of You as an Individual User
If you are a Nigerian resident who trades or holds tokens, your obligations mirror those applicable to other property and investments. Keep the following in mind so that your reporting matches the rules and your banking records align with your filings.
- Pay the tax due on net gains when you sell or swap; the levy applies only to the profit after allowable costs, not to total proceeds. Record losses, but declare gains.
- Maintain complete records: date, asset, naira valuation, and any fees, plus notes on each transaction’s purpose.
- Include digital-asset activity in your annual return, then file and pay on time to avoid penalties.
- Provide accurate information; concealing income or fabricating figures risks heavy sanctions.
- Watch for new guidance from FIRS as the framework evolves, and update your approach accordingly.
In summary, treat crypto like any other taxable asset. Accurate transaction logs, timely payment, and consistent currency conversion will help you avoid penalties and remain on the right side of the law.
Frequently Asked Questions: Crypto Tax in Nigeria
Crypto Profits Are Taxable in Nigeria — True or False?
True. Since reforms in 2023, profits realized when you dispose of tokens fall within scope and are assessed according to the rules for gains.
How Are Rates Calculated on Gains?
In general, net profit—sale amount minus cost and fees—is the base; historically that drew a ten-percent charge, moving for individuals into personal tax bands that can reach roughly twenty-five percent.
Which Agency Handles Crypto Taxes: FIRS or SARS?
In Nigeria, FIRS is responsible for administration and collection. SARS is a South African authority and does not apply here.
When Does Income Tax Apply to Crypto?
If coins are received as earnings—salary, freelance payments, mining or staking rewards—they are treated like regular income and taxed under normal rules in the relevant band.
