The Digest:
Nigeria's new tax framework now requires cryptocurrency holders to pay taxes on profits from Bitcoin, Ethereum, stablecoins, NFTs, and other digital assets from January 1, 2026. Under the Nigerian Tax Administration Act (NTAA) 2025, crypto earnings are treated like other income, with taxes applying only to realised profits, not wallet balances. Individuals earning below N800,000 annually are exempt, and capital gains below N10 million may qualify for relief. Transactions must be tracked, with filings through the NRS TaxPro Max system. Tax returns are due twice yearly (June 30 and December 31).
Key Points:
- Crypto profits are now taxable when realised (sold or swapped), not on holding.
- N800,000 annual income threshold exempts small investors from taxation.
- Different crypto activities (trading, staking, mining, NFTs) may be taxed differently.
- Accurate record-keeping of all transactions is essential for compliance.
- NRS and SEC collaborate to regulate and enforce crypto taxation.
Sources: Nigerian Tribune, Nigerian Revenue Service, SEC
