Did you know that starting Nigeria crypto tax will be enforced on Jan 1 2026? The government just signed the Nigeria Tax Act 2025 (a law that puts digital assets under the tax net for the first time). If you trade, hold or run a cryptoârelated business, youâll need a clear plan to stay on the right side of the tax office.
Why the new law matters
The NTA 2025 replaces years of uncertainty. Before June 2025, the Central Bank of Nigeria (CBN) barred banks from dealing with crypto, and the tax authority treated digital assets as a gray area. Now the law - in partnership with the Securities and Exchange Commission (SEC) - classifies crypto as a "chargeable asset" and subjects profits to capital gains tax. This alignment with international standards means multinational exchanges canât simply shift profits abroad to avoid Nigerian tax.
Key players and how they interact
Understanding the ecosystem helps you know who to report to and whose rules you must follow:
- Securities and Exchange Commission (SEC) (Regulates crypto as securities and issues VASP licences)
- Central Bank of Nigeria (CBN) (Provides banking guidelines for licensed crypto firms)
- Virtual Asset Service Provider (VASP) (A licensed entity that can offer crypto exchange, wallet or custodial services)
- Busha Exchange (One of the first locally licensed crypto exchanges approved under the new framework)
What counts as a taxable event?
The act lists four main triggers. Each one generates a capitalâgains liability unless you can prove a loss:
| Event | Tax treatment | Reporting deadline |
|---|---|---|
| Sale of crypto for fiat | Capital gains tax @ 15% of net profit | Within 30 days of transaction |
| Swap of one token for another | Capital gains tax on the market value of received token | Within 30 days |
| Use of crypto to pay for goods/services | Taxed like any asset disposal - value at time of payment | Within 30 days |
| Receipt of crypto as salary or dividend | Subject to personal income tax rates (up to 24%) | At end of fiscal year |
How individuals should prepare
If youâre a retail investor, start a dedicated ledger now. Record the date, amount, market price (in naira), and the counterâparty for every trade. Many local exchanges, including Busha, now export CSV files that feed directly into tax software.
When the deadline hits in 2026, youâll file a Schedule Câlike form with the Federal Inland Revenue Service (FIRS). The form asks for total gains, allowable losses, and the net taxable amount. Keep screenshots of exchange statements, wallet transaction logs, and any bank statements that show fiat conversions. The tax office has the right to request these documents during an audit.
Compliance checklist for crypto businesses
Running a crypto exchange, wallet service, or payment gateway means more than just filing a return. You need a licence, proper accounting, and ongoing reporting.
- Obtain a VASP licence from the SEC. The application requires proof of AML/KYC systems, audited financials and a minimum capital of NGN 5 million.
- Register the company with the CBN under the December 2023 VASP Guidelines so banks can hold your fiat accounts.
- Integrate a doubleâentry accounting system that captures cryptoârelated transactions in NGN equivalents. Many SaaS platforms now offer builtâin crypto modules.
- File quarterly tax estimates based on projected profits. The NTA 2025 expects advance payments for corporations.
- Engage a tax adviser experienced in digital assets. The law explicitly recommends professional guidance to avoid misâclassification of token types.
Common pitfalls and how to avoid them
Even seasoned traders stumble over a few traps:
- Ignoring offâshore exchanges. The government is cracking down on platforms like Binance that donât share user data. Use a locally licensed VASP to keep a clear audit trail.
- Mixing personal and business wallets. Separate accounts simplify accounting and reduce the risk of a âmixedâuseâ audit finding.
- Failing to convert crypto values to NGN at the time of each transaction. The tax office will reject retroactive conversions.
- Assuming crypto is taxâfree because itâs not fiat. The NTA 2025 treats digital assets the same as stocks for tax purposes.
What to expect after Jan 2026
From the start of 2026, the Federal Inland Revenue Service will roll out an online portal where VASPs upload transaction summaries automatically. Expect electronic notices for filing deadlines and, if youâre late, a 10% penalty plus interest.
Internationally, Nigeriaâs framework aligns with the OECDâs Base Erosion and Profit Shifting (BEPS) guidelines. That means any crossâborder crypto earnings will be scrutinized for profitâshifting, and foreign exchanges will need to register as âtaxable personsâ if they have Nigerian users.
Getting professional help
Because the rules blend tax law, securities regulation, and antiâmoneyâlaundering compliance, a singleâdiscipline adviser might miss something. Look for firms that list:
- Experience with the Finance Act 2023 and NTA 2025.
- A partnership with a licensed audit firm.
- Capabilities to integrate crypto data into standard accounting packages.
Most big accounting firms now have a âdigital assetsâ wing in Lagos and Abuja. A quick consultation can save you thousands in penalties later.
Quick recap
In short, the new law makes crypto taxable, forces businesses to get VASP licences, and gives individuals a clear reporting schedule. Start logging every move today, use a licensed exchange, and get a specialist adviser before the new year. That way youâll keep your crypto gains, avoid fines, and stay ahead of the curve as Nigeria joins the global move toward regulated digital finance.
When does the crypto tax start in Nigeria?
The Nigeria Tax Act 2025 takes effect on 1 January 2026, and taxable events must be reported from that date onward.
Do I have to pay tax if I only hold Bitcoin?
Holding crypto alone is not a taxable event. Tax applies when you sell, swap, use it for purchases, or receive it as income.
What is a VASP licence and do I need one?
A VASP licence is issued by the SEC to any entity that offers crypto exchange, wallet, or custodial services. Individuals do not need it, but businesses must obtain it to operate legally.
How are crypto swaps taxed?
A swap is treated as a disposal of the first token and acquisition of the second. You pay capital gains tax on the market value of the token you receive at the time of the swap.
Can I use an offshore exchange and avoid Nigerian tax?
No. The law applies to all Nigerian residents regardless of the exchange used. The tax authority can request transaction data from offshore platforms, and penalties apply for nonâcompliance.
What records should I keep for tax purposes?
Save CSV or PDF statements from exchanges, wallet transaction logs (including timestamps and NGN valuations), any bank statements showing fiat conversions, and invoices for cryptoâpaid services.
20 Comments
Daisy Family
oh sweet jesus they're taxing crypto now? like, cool i guess. hope you're ready to file your 'capital gains' on that 0.002 BTC you bought in 2021 lol. also why is everyone suddenly an expert on NTA 2025? i thought nigeria was still figuring out how to power their grid đ¤Ą
Paul Kotze
This is actually a big step forward for Nigeria. Clear rules mean more legitimacy for crypto projects and better protection for users. The key is making sure small holders aren't crushed by compliance costs. If the FIRS offers free templates and simple reporting tools, this could be a win for innovation.
Jason Roland
I get why people are nervous, but honestly? This is how countries grow. Look at how the US handled crypto taxes in 2014 - chaos. Now itâs just part of the system. Nigeriaâs doing the right thing by aligning with OECD standards. The real win? When local devs can build on a regulated foundation instead of running from regulators.
Niki Burandt
sooo... you're telling me i have to track every single shiba inu trade? like... i just meme traded for fun đ and now i need a CPA? also can i write off my emotional losses? because i lost my entire portfolio to a dog coin and my therapist says that counts as a 'non-fungible trauma' đ§ đ
Chris Pratt
Nigeria's move is actually pretty smart. It shows they're serious about joining the global digital economy. I've seen too many African countries shy away from crypto because they're scared. This? This is leadership. Respect.
Karen Donahue
I'm just gonna say it - this whole thing is a scam. Why should I pay taxes on something that doesn't even have intrinsic value? The government is just trying to get a piece of the pie because they can't create real jobs. And now they want me to export CSV files? I don't even know what a CSV is. This is why I hate modern life. I miss the 90s. Back then, if you had money, you just kept it under your mattress. No forms. No audits. No drama.
Bert Martin
If you're holding crypto, start logging now. Even if it's just a note on your phone. Date, amount, price in naira. Doesn't have to be fancy. Just consistent. The worst thing you can do is wait until January 2026 and panic. You got this.
Ali Korkor
yo if you're just holding btc you good. no tax. but if you trade? yeah you gotta report. simple. no cap. use busha, they give u csv. done. no stress. just log it like you log your meals. easy.
madhu belavadi
this is why i hate the world. first they ban crypto, now they tax it. what do they want from us? i just wanted to make some money off memes and now i'm gonna be audited? i'm tired. i'm done. i'm going back to buying gold bars and hiding them in my socks.
Dick Lane
i think this is actually good for the ecosystem. people always say crypto is unregulated but now there's a real framework. i don't love the 15% tax but if it means exchanges can operate legally and i can actually cash out without my bank freezing my account? worth it
Norman Woo
they're using this to track us. you think they care about taxes? no. they want to know who's buying what. next thing you know, they'll freeze your wallet if you buy more than 500k naira in eth. this is the beginning of financial control. i'm moving my keys to a cold wallet and never touching a licensed exchange again
Serena Dean
You can do this! Start small - just record one trade a day. Use the Busha export tool. Itâs literally one click. Youâre not alone. Thousands of Nigerians are doing this right now. And guess what? Youâre building something bigger than taxes - youâre building financial literacy. Keep going!
James Young
Anyone who thinks this is hard is just lazy. Iâve filed crypto taxes for 7 years. You track your buys, you track your sells, you calculate the difference. Itâs math. Not magic. If you canât handle that, maybe you shouldnât be trading. Also, if youâre using Binance, youâre already a criminal. Get licensed or get out.
Chloe Jobson
VASP compliance = non-negotiable. Key pillars: AML/KYC, capital reserve, double-entry crypto accounting. FIRS portal integration is mandatory by Q2 2026. Consult a firm with digital asset experience - not just a general CPA. Token classification matters: utility vs security vs payment. Misclassification = 200% penalty.
Andrew Morgan
imagine being so scared of your own money that you need the government to tell you how to count it 𤥠i mean... we live in a world where you can buy a whole planet in a video game but if you trade a coin you need a 12 page form? this is wild. i love crypto because it was free. now its just another tax trap. i'm out
Michael Folorunsho
Nigeria is finally doing what every other civilized country did years ago. People complaining? They're the same ones who screamed when the CBN banned banks from crypto. Now they want to tax it? Good. Let them pay. If you're not paying taxes on your gains, you're stealing from the system. This isn't oppression - it's responsibility.
Roxanne Maxwell
I'm so glad this is happening. I've been holding since 2021 and never knew if I was supposed to report. This gives me peace of mind. I'm going to start my ledger tomorrow. And yes, I'll use Busha - they're local, they're legit, and they care about their users.
Jonathan Tanguay
I've been doing this since 2017 and let me tell you, this is the most half-assed tax framework i've ever seen. First of all, you're taxing swaps but not giving us a way to track cost basis across multiple wallets? And you're expecting people to convert to NGN at time of trade but most wallets don't show NGN value? And what about DeFi? Liquidity pools? Yield farming? Are those taxable? Did anyone even think about this? No. This is just a revenue grab dressed up as regulation. And the penalties? 10% plus interest? That's predatory. This isn't tax policy - it's extortion
Ayanda Ndoni
you people are so lucky you have a system to complain about. here in south africa we got nothing. no rules, no guidance, no help. just silence. and now you're all arguing about csv files? i'd kill for your problems.
Elliott Algarin
There's something beautiful here - a society choosing structure over chaos. Crypto was born to be free, yes. But freedom without responsibility becomes chaos. And chaos hurts the vulnerable most. This law isn't about control. It's about inclusion. It says: you matter. Your gains matter. Your record matters. And you deserve to be part of the system, not outside it.