The Nigeria Revenue Service (NRS) has released new guidelines spelling out how cryptocurrencies and other digital assets will be taxed in Nigeria.
The rules, which the service announced on Monday, apply to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) operators, tax practitioners and others in the digital asset space.
EDITOR’S PICKS
The guidelines follow President Bola Tinubu’s Executive Order on Virtual Assets Coordination, signed on July 17, 2026, to harmonise digital asset regulation and curb fraud. They are backed by the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.
What the guidelines cover
NRS says the document sets out registration, reporting and record-keeping duties for virtual asset players, along with rules on how digital assets should be valued and taxed.
The agency says the goal is to bring clarity and consistency to tax administration as Nigeria’s crypto market grows, while encouraging voluntary compliance.
Three categories of virtual assets
The guidelines split virtual assets into three groups, each taxed differently:
- Cryptocurrencies and exchange tokens
- Fiat-referenced stablecoins
- Assets representing financial or investment rights, such as profit- or revenue-sharing tokens
How specific transactions are taxed
Stablecoins will be taxed based on the value of the fiat currency they are pegged to, and no withholding tax applies when they are sold.
Converting naira into virtual assets for cross-border settlements will not count as a taxable event. But selling those assets later will attract tax.
Crypto received as salary, wages or professional fees will be taxed at its market value on the day it was received. Tokens earned from staking, mining, DeFi rewards and liquidity incentives count as taxable income the moment they are received, and that value becomes the cost base for any future sale.
For NFTs, income creators make from selling their work is treated as business income, while investors who profit from reselling NFTs will be taxed under the standard virtual asset rules.
Penalties for non-compliance
The guidelines carry strict penalties for VASPs and P2P operators who fail to meet their obligations, which include deducting taxes, accounting for VAT, remitting taxes on time, filing returns and keeping proper records.
Key penalties include:
- N10 million for the first month of default, N1 million for each month after, for VASPs/P2P operators
- N100,000 for failing to file returns or filing incomplete ones in month one; N50,000 for each subsequent month
- 40 per cent of any tax not deducted at source
- N50,000 (companies) or N10,000 (individuals) for failing to keep records
- N50,000 for failure to register in month one, N25,000 for each month after
- N100,000 plus 40 per cent penalty and possible jail time of up to three years for hiding facts in a dutiable instrument
- 10 per cent yearly penalty plus Central Bank of Nigeria (CBN) interest for late remittance of deducted tax
- 100 per cent penalty plus CBN interest for false VAT refund claims
Naira transactions that go unpaid attract 10 per cent penalty plus interest, while foreign currency transactions attract 10 per cent plus the Secured Overnight Financing Rate (SOFR) and applicable spread.
NRS notes these penalties apply on top of any other penalty, interest or offence already prescribed under tax law.
Why it matters
The guidelines mark one of the clearest attempts yet by the federal government to formally tax the crypto economy, rather than leave it in a grey zone.
For VASPs and P2P platforms, the compliance bar is now high, with steep monthly penalties for delay. For everyday users, the rules mean that crypto earned as income, through staking, or from NFT sales is no longer outside the tax net.
FURTHER READING
NRS has urged all affected taxpayers and stakeholders to study the guidelines closely and ensure they comply.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
Click to watch the video of the week below:
