Nigeria Crypto Tax Guide 2025‑2026: What You Need to Know

When the Nigeria Tax Act 2025 (NTA 2025 the law that brought digital assets into the tax net) went into effect on January 1, 2026, the world of crypto in Nigeria shifted overnight. No longer is crypto a gray‑area hobby; it’s a taxable activity with clear rules, reporting deadlines, and penalties for non‑compliance.

Whether you’re an everyday trader, a tech‑savvy freelancer, or the owner of a fledgling crypto startup, you’ll need to answer three questions fast: what counts as a taxable event, how the tax is calculated, and what steps you must take to stay on the right side of the law.

1. The Legal Backbone - How Nigeria Classifies Crypto

Two pieces of legislation now define every crypto transaction:

• Investments and Securities Act 2025 classifies digital assets as securities, placing them under the jurisdiction of the Securities and Exchange Commission (SEC) Nigeria’s market watchdog.
• The Central Bank of Nigeria (CBN) acts as the monetary authority and enforces the VASP guidelines, which now allow banks to service licensed crypto firms.

This dual‑regulatory model means every crypto business must be a licensed Virtual Asset Service Provider (VASP) a company approved to handle digital assets under the SEC’s Digital Assets Rules.

2. What Triggers a Taxable Event?

The NTA 2025 spells out four core events that create a tax liability:

1. Disposal - selling, swapping, or gifting crypto for fiat or another digital asset.
2. Receipt of crypto as income - payment for goods, services, or salary.
3. Mining rewards - any newly minted coins you keep.
4. Crypto‑backed loans - when you use crypto as collateral and the loan is written off.

Each event is treated like a capital transaction, so the resulting profit or loss is subject to Capital Gains Tax (CGT) currently set at 10% of net gains. If you end up with a loss, you can offset it against other capital gains in the same fiscal year.

3. How to Compute Your Crypto Gains

Follow the simple formula that the tax office uses:

Taxable Gain = (Disposal Proceeds - Cost Base) - Allowable Expenses

Where:

• Disposal Proceeds = fair market value in Naira at the moment of the transaction.
• Cost Base = what you originally paid, plus any transaction fees, mining electricity costs, or conversion fees.
• Allowable Expenses = professional fees, compliance software costs, and any banking charges directly tied to the crypto activity.

For example, if you bought 0.5BTC for 5,000,000NGN, paid 50,000NGN in fees, and later sold it for 7,200,000NGN, your taxable gain would be:

(7,200,000 - 5,000,000) - (50,000) = 2,150,000NGN

Apply the 10% CGT rate, and you owe 215,000NGN in tax.

4. Compliance Checklist for Individuals and Businesses

Staying compliant isn’t rocket science, but you must be systematic. Here’s a practical list to keep on your desk or phone:

• Register as a licensed VASP if you run a crypto exchange, wallet service, or payment gateway.
• Maintain a dedicated ledger that records: date, crypto type, quantity, Naira value, purpose (sale, income, mining, etc.), and associated fees.
• Use accounting software that supports crypto columns - many ERP tools now have plug‑ins for blockchain data.
• Submit annual tax returns using the new digital filing portal (launches Q2 2026) and attach a “Crypto Schedule” that details every taxable event.
• Engage a tax advisor who is familiar with digital asset taxation the specialized field of crypto tax law. The cost of professional advice is deductible.

5. Where to Trade Safely - Licensed Exchanges Matter

The government encourages you to stick with locally licensed platforms because they feed data straight into the tax authority’s monitoring system. At the moment, the most visible approved exchange is Busha Nigeria’s regulated crypto exchange. Using Busha gives you automatic transaction statements that can be uploaded to the tax portal.

Offshore giants like Binance or KuCoin are still legal to hold, but any transaction through them must be reported manually, and the authorities have been issuing warnings and occasional audits for users who rely solely on unregulated venues.

6. Timeline - When Do the Rules Kick In?

Key dates you can’t miss:

From January2026 onward, every crypto‑related profit must be reported. The tax authority will start automated cross‑checks with banks that have signed up to the VASP guidelines, so expect notices if your records don’t line up.

7. Penalties - What Happens If You Slip?

Non‑compliance triggers a tiered penalty structure:

• Late filing: 5% of the assessed tax plus 2% per month of delay.
• Under‑reporting: Up to 100% of the undisclosed amount, plus possible criminal prosecution for fraud.
• Operating without a VASP license: Immediate suspension of banking services and a fine of up to 2millionNGN.

In practice, the tax office prefers settlement over prosecution, but the financial hit can be severe. That’s why proactive record‑keeping pays off.

8. Practical Tips & Common Pitfalls

Here are some real‑world habits that smooth the compliance journey:

• Snapshot your portfolio monthly. A quick export from Busha or your wallet app gives you a ready‑made CSV for the tax schedule.
• Don’t mix personal and business crypto wallets. Separate addresses simplify cost‑base calculations.
• Convert fees to Naira at the time of payment. Using the daily Central Bank rate prevents disputes.
• Watch the “air‑drop” rule. Free tokens received from a project count as income at market value on the receipt date.
• Document mining electricity costs. A simple utility bill can be deducted as an expense.

9. Getting Professional Help

Because the NTA 2025 is brand new, many accountants are still learning the ropes. Look for firms that list “crypto tax advisory” in their service catalog, or certified tax consultants who have completed the recent “Digital Asset Taxation” workshop run by the Nigerian Institute of Chartered Accountants.

Even a one‑hour review can save you thousands in missed deductions or penalties. The cost is fully deductible, which also reduces your taxable income.

Key Takeaways

• The Nigeria crypto tax regime starts on Jan12026 and treats all crypto gains as capital gains.
• Four events-disposal, income receipt, mining, and crypto‑backed loans-trigger tax.
• Licensed VASPs, like Busha, simplify reporting; unregulated platforms require manual disclosures.
• Maintain a detailed ledger, use compliant software, and file the “Crypto Schedule” with your annual return.
• Penalties increase sharply for late filing or operating without a license-don’t gamble.