Nigeria Set to Tax Crypto Transactions, Unlocking Major Revenue Potential
In the latest developments, Nigeria plans to update its digital asset regulations to tax crypto transactions. Bloomberg Report. This change will provide all qualified crypto transactions to regulated exchanges under the tax system, which could result in substantial revenues for the country.
Nigerian lawmakers reviewed a bill that taxed crypto transactions and introduced other taxes and adopted plans for the quarter. The National Assembly re-attended the 2025 meeting on January 14.
SEC plans to expand crypto licensing
The SEC acknowledges that cryptocurrency trading will bring in substantial tax revenue, but does not disclose the expected amount of revenue. It also plans to expand the scope of cryptocurrency exchange licenses so residents can trade through regulated centralized exchanges for better monitoring and taxation. This move is expected to boost investor confidence.
In August 2024, Nigeria’s SEC released its first crypto exchange license, marking a step towards clearer regulations. By September 2024, the Securities and Exchange Commission began cracking down on unregulated exchanges, with only two exchanges at that time.
SEC updates rules on crypto marketing
SEC’s interest has also expanded to crypto marketing. In December 2024, the SEC updated its rules to address the issue of social media influencers promoting unregulated crypto products. Virtual Asset Service Providers must now obtain approval before working with third-party sponsors to promote their crypto products.
Interestingly, Nigeria’s young, tech-savvy population has embraced cryptocurrencies to prevent inflation and the value of the naira. Since taking office in 2023, President Bola Tinubu has been undergoing fiscal reforms to increase government revenue and reduce deficits. It is worth noting that the Nigerian Parliament recently approved a record 54.99 trillion Naira (US$36.4 billion) spending plan for 2025, further indicating the government’s need to increase its revenue stream.
Nigeria initially took a firm stance on cryptocurrencies, and financial institutions were prohibited from working with cryptocurrency companies due to security concerns. However, the government lifted the ban in December 2023.
Now, Nigeria is committed to growing its cryptocurrency market and is aware of its potential. The country’s move to propose crypto taxes is a key step towards a normative space. As crypto adoption continues to rise, governments are working to maintain a competitive advantage while ensuring a safe environment for investors.
