Nigeria’s New Crypto Tax Rules Face Pushback Over Charges on Loss-Making Trades

Nigeria’s virtual-asset tax guidelines took effect on August 3, but crypto industry players are already asking the Nigeria Revenue Service to review key provisions. The Digital Assets Coalition supports taxing crypto profits, platform registration, customer verification and transaction reporting. Its main objection is to charges applied to transaction values rather than actual gains. The rules cover cryptocurrencies, stablecoins, NFTs and other digital assets. They affect traders, freelancers paid in crypto, businesses that accept digital assets, miners, stakers, exchanges and wallet providers. Selling or swapping assets, earning staking or DeFi rewards, mining, and receiving crypto for work may create tax obligations. Holding crypto or moving it between personal wallets does not automatically trigger tax. The coalition says the 1.5% stamp duty on naira-to-crypto conversions and 1% withholding tax on certain asset sales could apply even when a user makes a loss. It also argues that freelancers may face income tax when paid in crypto, then additional transaction-related charges when converting the payment to naira. Its position is that taxes should focus on real profits, not every movement of funds. The group is also questioning provisions that allow tax remittance in digital tokens, arguing that taxes should be paid in recognised currency. It wants implementation paused for consultation, taxes collected in naira, and exemptions for small transactions. Crypto users should keep invoices, wallet records, transaction dates and asset values, as the framework requires detailed records to be retained for six years.

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