Starting January 1, 2026, every Nigerian who trades, sells, or earns cryptocurrency will be legally required to pay taxes on it. This isn’t a warning or a suggestion-it’s the law. The Nigeria Tax Act 2025 (NTA 2025) officially brought crypto into the tax net, ending years of ambiguity. If you’ve been holding Bitcoin, Ethereum, or any other digital asset, you now need to track every transaction. Ignoring this won’t make it go away. The government has built the systems to catch you.
What’s Actually Taxable Now?
Before 2026, many Nigerians treated crypto like cash-buy, hold, sell, no questions asked. That’s over. The NTA 2025 defines clear taxable events:- Selling crypto for Naira or foreign currency
- Trading one crypto for another (e.g., Bitcoin for Solana)
- Using crypto to pay for goods or services
- Earning crypto as income (from staking, mining, or a salary)
- Receiving crypto as a gift (if over a certain value)
It doesn’t matter if you made a profit or not. If you disposed of an asset you bought earlier, you owe tax on the gain. For example, if you bought 0.5 BTC for ₦2 million in 2023 and sold it for ₦4 million in 2025, your capital gain is ₦2 million. That’s taxable. The same applies to NFTs, utility tokens, and even crypto rewards from apps.
Who’s Watching? The SEC and CBN Are Now in Charge
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) are no longer just regulators-they’re tax enforcers. The SEC now classifies all cryptocurrencies as securities under the Investments and Securities Act 2025. That means every exchange, wallet provider, or crypto business operating in Nigeria must be licensed as a Virtual Asset Service Provider (VASP).Unlicensed platforms like Binance and KuCoin are blocked from operating in Nigeria. But here’s the catch: you can still use them. The problem is, the government can’t track those transactions. That’s why they’re pushing everyone toward local VASPs like Busha and other approved exchanges. These platforms are required to report your trades directly to tax authorities. If you’re using an unregulated platform, you’re on your own to report everything manually.
Banking Is Now Linked to Crypto
Back in 2021, the CBN banned banks from serving crypto businesses. That changed in December 2023. Today, banks are allowed-and even encouraged-to open accounts for licensed VASPs. This was a game-changer. It means your crypto transactions can now be traced through your bank statements. If you deposit ₦1.5 million into your account from a crypto sale and you didn’t declare it, the tax office will see it. They’re using data-matching tools to cross-reference bank deposits with crypto exchange reports.Even if you’re not using a VASP, your personal bank activity matters. If you regularly receive large transfers from unknown sources and don’t have a clear income explanation, expect a letter from the Federal Inland Revenue Service (FIRS).
Businesses Must Change How They Account for Crypto
If you run a business that accepts crypto payments, you can’t just record it as “other income.” Under the NTA 2025, you must:- Track the Naira value of each crypto payment at the exact time it’s received
- Record crypto as an asset on your balance sheet
- Calculate gains or losses when you convert it to Naira
- Include crypto salaries in payroll records and withhold taxes accordingly
Many small businesses are still using spreadsheets. That’s not enough anymore. The law requires digital accounting systems that can handle real-time crypto valuation and tax reporting. If you’re using QuickBooks, Xero, or any local accounting software, check if it supports Nigerian crypto tax rules. If not, you’ll need to upgrade or hire someone who can.
How Much Tax Will You Pay?
The rate depends on whether you’re an individual or a company:- Individuals: Capital gains tax is 10% on profits from crypto sales
- Companies: Corporate income tax applies at 30% on crypto-related profits
- Freelancers and contractors: Crypto payments count as income and are taxed at your personal income tax rate (10%-24%)
There’s no exemption for small amounts. Even a ₦5,000 profit from selling a token is taxable. The FIRS doesn’t have a minimum threshold. That’s different from some countries where small gains are ignored. In Nigeria, every naira counts.
What Happens If You Don’t File?
The penalties are serious. If you’re caught underreporting or failing to file:- Back taxes plus 10% interest per year
- Fines up to 200% of the unpaid tax
- Freezing of bank accounts linked to unreported crypto activity
- Legal action for tax evasion (criminal charges possible)
There’s already been a wave of enforcement. In late 2024, FIRS audited 12,000 high-net-worth individuals and flagged over 3,000 for unreported crypto gains. Most settled with reduced penalties after filing back returns. But those who ignored it? Their assets are now under investigation.
What Should You Do Right Now?
You have until December 31, 2025, to get ready. Here’s your action plan:- Track every transaction-buy, sell, trade, spend. Use a crypto tax tool like Koinly or CoinTracker that supports Nigerian Naira and SEC rules.
- Export your transaction history from every wallet and exchange you’ve used since 2020. You’ll need it for back-reporting.
- Choose a licensed VASP for future trades. Busha, LairaPlus, and other approved platforms make reporting easier.
- Consult a tax advisor who understands crypto. Most general accountants don’t. Look for firms that specialize in digital assets.
- File your 2025 crypto gains by March 31, 2026. Even if you didn’t sell anything, you still need to declare your holdings if you received income.
Is Crypto Still Safe in Nigeria?
Yes-but only if you play by the rules. The government isn’t trying to ban crypto. They’re trying to bring it into the formal economy. This is a sign of maturity, not restriction. Countries like the U.S., UK, and Singapore have similar systems. Nigeria is just catching up.People who panic and cash out now are missing the point. The goal isn’t to punish users-it’s to create a system where innovation can thrive without tax evasion. If you’re transparent, you’ll be fine. If you’re hiding, you’re already at risk.
Do I have to pay tax on crypto I bought before 2026?
Yes. The tax applies to any disposal of crypto after January 1, 2026, regardless of when you bought it. If you sell Bitcoin you bought in 2020 after that date, you owe capital gains tax on the profit. You’ll need to calculate the original purchase value in Naira and compare it to the sale value.
Can I use Binance or other offshore exchanges?
You can still use them, but you’re on your own for reporting. Offshore exchanges don’t report to Nigerian tax authorities. That means you must manually track every trade and file your own returns. Using a licensed local exchange like Busha makes compliance automatic. If you use offshore platforms, you’re taking a higher risk.
Are crypto gifts taxable?
Yes. If you receive crypto as a gift worth more than ₦50,000, it’s considered a taxable event for the giver. The recipient doesn’t pay tax when receiving it, but when they later sell or trade it, the original cost basis becomes their purchase price. Keep records of gift transactions.
Do I need to pay tax on crypto earned from staking or mining?
Yes. Crypto earned from staking, mining, or airdrops is treated as income. You pay income tax on its Naira value at the time you receive it. For example, if you earn 0.1 ETH worth ₦120,000 from staking, that amount is added to your taxable income for the year.
What if I lost money trading crypto?
Losses can offset gains. If you sold crypto at a loss, you can use that to reduce your taxable gains from other trades. For example, if you made ₦500,000 in gains but lost ₦200,000 on another trade, you only pay tax on ₦300,000. Keep detailed records of all losses.
Can I be audited even if I didn’t file?
Absolutely. FIRS is using bank data, exchange reports, and blockchain analytics to identify unreported activity. You don’t need to file first to be audited. Many people are being contacted after the government already has proof of their trades. If you’re contacted, don’t ignore it-get help immediately.
