Nigeria is taking a bold step toward formalizing its crypto market by introducing a 15% tax on cryptocurrency gains, set to begin in January 2026. The measure, part of the new Nigeria Tax Act (NTA) 2025, aims to widen the nation’s tax base and capture revenue from its thriving digital asset sector. However, industry experts warn that the lack of clear regulatory guidance could complicate implementation and compliance.
Key Details of the New Crypto Tax
Under the new framework, Nigerians who profit from crypto transactions – such as buying Bitcoin and selling it later at a higher price — will pay a 15% tax on gains exceeding ₦800,000 (around USD 540). Profits below that threshold remain untaxed. The tax falls under the personal income tax category rather than a standalone capital gains tax.
Unlike traditional investment taxation, losses from crypto trades cannot be deducted or offset. This means traders who lose money in one transaction cannot use that loss to reduce their taxable gains elsewhere. The policy is part of broader fiscal reforms consolidating personal, corporate, and capital gains taxes under one umbrella law.
Nigeria’s government hopes the policy will tap into an estimated USD 90 billion in annual crypto transactions, reducing its dependency on oil revenues while boosting digital finance oversight.
Expert Concerns: Ambiguity and Enforcement
While the move signals progress, many experts believe the law leaves major questions unanswered. The NTA 2025 does not clearly define what constitutes a “digital asset” or a “crypto gain.” This omission raises confusion about how different asset types — including NFTs, staking rewards, decentralized finance (DeFi) yields, and airdrops – will be taxed.
Enforcing the tax could also prove difficult. Because crypto transactions often occur on decentralized or peer-to-peer networks, tracking them may rely heavily on self-reporting. Critics fear this could lead to widespread underreporting or outright evasion, particularly in unregulated markets.
Additionally, the decision to disallow loss deductions has drawn criticism from traders, who argue it penalizes risk-taking in an already volatile market. Others point out the absence of clear rules for exchanges, wallet providers, and audits, leaving gaps in how the Nigeria Revenue Service (NRS) will monitor compliance.
With the tax set to take effect in 2026, the government’s next challenge lies in drafting detailed implementation guidelines. These will need to address valuation methods, reporting standards, audit procedures, and exchange responsibilities.
For investors, the change could reshape trading strategies, especially for frequent traders who may face higher costs. On the other hand, the tax may encourage regulatory legitimacy, offering a clearer legal framework for crypto operations in the country.
If Nigeria manages to apply the law transparently and enforce it fairly, it could become a model for other African nations looking to regulate digital assets. But if the rollout remains unclear, the policy risks being ignored – proving that taxation without proper regulation may be just as ineffective as having no rules at all.
