Nigeria prepares landmark crypto tax bill, aiming to classify transactions, airdrops, bounties, and payments as taxable under law.
Nigeria is moving closer to introducing a comprehensive crypto tax framework that brings individuals and businesses engaging in digital assets under the tax net. The draft Nigeria Tax Administration Act, 2025 outlines new obligations under the Federal Inland Revenue Service and the Securities and Exchange Commission (SEC Nigeria).
The framework mandates that all Virtual Asset Service Providers register with the relevant tax authority and obtain a SEC Nigeria license before starting operations. SEC oversight will only extend to virtual assets that qualify as securities, defined by criteria such as investment of money, common enterprise, expectation of profit, and reliance on third-party efforts.
The draft further identifies taxable activities, including sales, exchanges, transfers, mining, staking income, airdrops, bounties, and rewards. Payments made with crypto for goods or services will be treated the same as fiat transactions, with value determined at market price at the time of payment.
This shift marks Nigeria’s transition from sporadic crackdowns to structured oversight. If passed, the law will expand government revenue, increase compliance for crypto users and businesses, and clarify the legal status of digital assets. It also aligns Nigeria with countries like Kenya, South Africa, and Ghana that are moving toward formal crypto taxation.
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