Crypto Taxation in Nigeria: What You Need to Know in 2026

Jan, 2 2026

Starting January 1, 2026, every Nigerian who trades, sells, or earns cryptocurrency must pay taxes on it. No more guessing. No more loopholes. The Nigeria Tax Act 2025 (NTA 2025) is now in force, and it changes everything. If you’ve been holding Bitcoin, trading tokens, or accepting crypto as payment, this law directly affects you. The government isn’t just watching anymore-they’re tracking, taxing, and enforcing.

What’s Actually Taxable Now?

Under the new law, any time you dispose of a digital asset, you owe tax. That means:

  • Selling Bitcoin for Naira
  • Trading Ethereum for Solana
  • Using BNB to buy a laptop online
  • Receiving crypto as payment for work or services
  • Cashing out staking rewards or airdrops

It doesn’t matter if you turned a profit or not. If you swapped, sold, or spent crypto, it’s a taxable event. The tax is calculated as capital gains-your profit minus what you originally paid. For example, if you bought 0.5 BTC for ₦1.5 million and sold it for ₦3 million, your taxable gain is ₦1.5 million. That gain gets added to your income and taxed at your personal rate, which ranges from 7% to 24% depending on your total earnings.

Even if you didn’t convert to Naira, the value is still measured in Nigerian currency at the time of the transaction. The Federal Inland Revenue Service (FIRS) will use average exchange rates from licensed Nigerian exchanges to determine value. You can’t avoid tax by using offshore platforms-your transactions are still reportable.

Who’s Regulating This?

The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) are now jointly in charge. The SEC officially classifies all cryptocurrencies as securities under the Investments and Securities Act 2025. That means every crypto exchange, wallet provider, or trading platform operating in Nigeria must be licensed as a Virtual Asset Service Provider (VASP).

Before December 2023, Nigerian banks couldn’t touch crypto businesses. Now, they can. The CBN’s VASP Guidelines opened the door for banks to provide accounts to licensed crypto firms. That’s a big deal. It means your crypto transactions can now be traced through the banking system. If you’re using an unlicensed offshore exchange like Binance or KuCoin, your activity is harder to track-but the government is cracking down. They’ve already blocked access to several offshore platforms and are pressuring payment processors to cut off services to unregistered entities.

Local exchanges like Busha, Luno, and Paxful Nigeria are now fully compliant. If you’re using them, your trades are recorded, and your tax obligations are easier to calculate. Using these platforms isn’t just safer-it’s smarter from a compliance standpoint.

What Businesses Must Do

If you run a business in Nigeria and accept crypto payments, you’re not off the hook. The NTA 2025 requires you to:

  • Register as a licensed VASP if you’re facilitating crypto transactions
  • Record every crypto transaction in your accounting system
  • Track the Naira equivalent of each crypto payment at the time of receipt
  • Report crypto income as part of your annual tax return
  • Pay corporate tax on profits from crypto sales or conversions

Payroll in crypto? That’s taxable income for employees. If you pay a developer 0.1 ETH per month, that’s income. The value at the time it hits their wallet counts. Employers must report this as salary and withhold PAYE tax. Employees must include it in their personal tax filings.

Businesses that ignore this risk fines up to 200% of the unpaid tax, plus interest. The FIRS has new digital tools to cross-reference bank transactions, exchange records, and wallet addresses. They’re not just asking for records-they’re pulling them automatically.

Small business owner accepting crypto payment with licensed exchange logos

How to Stay Compliant

You don’t need to be a tax expert, but you do need to be organized. Here’s what to do:

  1. Use only SEC-licensed Nigerian exchanges
  2. Keep detailed records of every transaction: date, amount, asset type, value in Naira, and purpose (buy, sell, trade, receive)
  3. Save screenshots or export transaction histories from your wallets and exchanges
  4. Use accounting software that supports crypto tracking (like QuickBooks with crypto plugins or local tools like Kuda Business)
  5. Consult a tax advisor who understands digital assets-don’t rely on a general accountant

Many people think they can just ignore crypto taxes because it’s "digital." But the FIRS now has direct access to exchange data. If you’re trading on Busha, they can see your trades. If you’re withdrawing to a Nigerian bank account, they can trace the flow. Hiding it won’t work anymore.

What Happens If You Don’t Pay?

The penalties are serious. First-time offenders face a 100% penalty on unpaid tax. Repeat offenders can be fined up to 200% of the tax owed, plus criminal charges. The government has already started audits of high-volume crypto users. In late 2025, over 3,000 individuals received letters from FIRS requesting tax documentation for crypto activity between 2023 and 2025. If you can’t provide records, they’ll estimate your gains using market averages-and they’ll come after you.

There’s also a voluntary disclosure program running through June 2026. If you come forward before then and pay what you owe with interest, you can avoid penalties. After that, the door closes. No more leniency.

Digital network tracking crypto transactions across Nigeria to FIRS hub

How This Compares to the Past

Just two years ago, Nigeria’s stance on crypto was messy. The Central Bank banned banks from dealing with crypto firms in 2021. People traded peer-to-peer, used offshore platforms, and assumed they were invisible. The government didn’t tax it because they didn’t know how to track it.

That’s over. The 2025 law doesn’t just tax crypto-it legitimizes it. By bringing exchanges into the regulated banking system, the government turned a black market into a monitored marketplace. It’s not about stopping crypto. It’s about controlling it. And now, everyone who participates must play by the rules.

What’s Next?

The next phase will include mandatory reporting by exchanges. By Q3 2026, all licensed VASPs must submit quarterly transaction reports directly to FIRS. This means your trade history will be sent to the tax authority automatically. You won’t need to file it yourself-but you’ll still need to verify it’s accurate.

For now, the focus is on individuals and businesses with clear, traceable activity. But as the system matures, even small transactions will be flagged. The goal isn’t to punish everyday users-it’s to close the tax gap. Nigeria lost an estimated ₦420 billion in uncollected taxes from digital assets between 2020 and 2025. That’s money the government now plans to recover.

If you’ve been holding off on filing, now’s the time. Start gathering your records. Talk to a tax pro. Don’t wait for a letter. The rules are clear. The system is live. And in 2026, crypto isn’t outside the tax net-it’s right in the middle of it.

Do I have to pay tax if I just bought crypto and didn’t sell it?

No. Buying crypto with Naira or another asset isn’t a taxable event. You only owe tax when you sell, trade, spend, or convert it into something else. Holding crypto is like holding cash-you don’t pay tax just for owning it. But keep records of your purchase price. You’ll need it when you eventually sell.

Can I use Binance or other offshore exchanges and avoid tax?

Technically, you can-but you’re taking a big risk. The Nigerian government has blocked access to several offshore platforms and is pressuring payment processors to cut off services to them. Even if you use Binance, your withdrawals to Nigerian banks are traceable. The FIRS can match bank deposits with known wallet addresses. If you’re making large transfers without filing taxes, you’ll likely get flagged. Licensed local exchanges are safer and easier to comply with.

What if I received crypto as a gift?

Receiving crypto as a gift isn’t taxable when you get it. But if you later sell or trade it, you owe capital gains tax on the profit. The cost basis is the value of the crypto when the original owner bought it-not when you received it. You’ll need to ask the giver for their purchase records. If you can’t get them, the FIRS will assume a zero cost basis, meaning you’ll owe tax on the full sale amount.

Do I need to file even if I made a loss?

Yes. You must report all crypto transactions, even if you lost money. Losses can offset gains in the same tax year, but you still have to declare them. If you don’t report a loss, you can’t use it later to reduce your tax bill. Keep full records so you can prove your losses if audited.

How do I calculate the value of my crypto in Naira?

Use the average exchange rate from a licensed Nigerian exchange on the date of the transaction. FIRS accepts rates from Busha, Luno, and Paxful Nigeria. Don’t use international rates or random websites. If you’re unsure, use the rate from your exchange’s transaction history. The tax authority will cross-check your numbers against their own data.

Is staking or mining crypto taxable?

Yes. Staking rewards and mining income are treated as ordinary income. The value of the crypto you earn is taxed at your income tax rate when you receive it. For example, if you earn 0.05 ETH from staking and it’s worth ₦250,000 at that moment, that ₦250,000 is added to your taxable income. You’ll owe tax on it even if you don’t sell it.

What if I’m a student or unemployed and only trade small amounts?

The law applies to everyone, regardless of income level. If you made a profit-even ₦5,000-you’re required to report it. However, if your total annual crypto gains are below ₦100,000, you may qualify for a simplified filing process. Check the FIRS website for the Small Taxpayer Scheme. But don’t assume you’re exempt. The system tracks all transactions, no matter the size.

If you’re just starting out, don’t wait. Get your records in order. Talk to someone who knows crypto taxes. The window for easy compliance is closing fast. In 2026, the rules are no longer optional-they’re mandatory.

Tags:

6 Comments

  • Image placeholder

    Alison Hall

    January 4, 2026 AT 06:05

    Just bought my first 0.1 BTC last week-glad I kept the receipt. 🙌 Now I know I’m not crazy for saving screenshots of every trade. Seriously, if you’re holding crypto in Nigeria, start organizing now. Don’t wait for a letter.

  • Image placeholder

    Alex Strachan

    January 4, 2026 AT 09:10

    So let me get this straight… I can’t use Binance anymore, but I’m supposed to trust Busha? 😂 The same guys who had that ‘accidental’ server crash in 2023? Thanks, but I’ll keep my crypto where the government can’t see it… and my taxes where the government can’t touch them. 🤷‍♂️💸

  • Image placeholder

    Kevin Gilchrist

    January 4, 2026 AT 20:52

    Oh wow, so now my 0.002 ETH airdrop from 2022 is suddenly taxable? 😭 I spent that on chicken and rice and a Netflix subscription. Now I owe taxes on a meal I can’t even remember? This isn’t taxation-it’s emotional abuse. I’m filing for PTSD.

  • Image placeholder

    Khaitlynn Ashworth

    January 6, 2026 AT 08:53

    Wow. So you’re telling me I actually have to *do work*? Like… record dates? Track values? Use software? Who even *is* this person who wrote this? Are they a tax accountant or a robotic overlord? 😒 And why is everyone acting like this is new? It’s 2026. We’ve had crypto for a decade. The tax man was always coming. You just didn’t want to look.

  • Image placeholder

    NIKHIL CHHOKAR

    January 6, 2026 AT 18:44

    Look, I get it. People are scared. But let’s be real-this isn’t about taxes. It’s about control. The government didn’t suddenly become responsible. They just realized crypto was the last unregulated cash cow. And now they want their cut. But here’s the thing: if you’re still using offshore exchanges, you’re not being clever-you’re being reckless. And if you think you can hide from FIRS by using a VPN and a burner wallet? Honey. They’ve got AI that reads your WhatsApp messages. You’re not a hacker. You’re a spreadsheet.

  • Image placeholder

    Mike Pontillo

    January 8, 2026 AT 12:16

    My cousin in Lagos just got audited for trading $200 worth of Dogecoin. They made him pay $180 in penalties. He didn’t even know he was supposed to report it. So yeah. This law isn’t for millionaires. It’s for people who think crypto is a meme. And now they’re coming for you too. Don’t be that guy.

Write a comment