Nigeria is planning to tax cryptocurrency transactions as part of a new effort to increase government revenue. The country wants to change its digital asset rules so that all eligible crypto transactions on regulated exchanges are taxed.
A new bill that will introduce crypto taxes and other tax changes is currently being discussed by lawmakers. If approved, the new tax rules could take effect soon, possibly in the first quarter of 2025.
To make this plan work, Nigeria’s Securities and Exchange Commission (SEC) is looking to increase the number of licensed crypto exchanges. By issuing more licenses, the SEC hopes to monitor transactions better and make sure they are taxed. Officials also believe that having clear regulations will make investors feel safer when using crypto in Nigeria.
In Aug 2024, Nigeria’s SEC issued its first license to a crypto exchange. This was seen as a big step toward bringing more clarity and rules to the country’s crypto market. However, by September 2024, only two exchanges were officially regulated. The SEC then announced plans to take action against unregulated exchanges.
Nigeria has also been working to control crypto marketing. In December 2024, the SEC introduced new rules that require companies to get approval before hiring influencers or other third-party promoters for crypto advertisements. The goal is to stop misleading promotions on social media.
Nigeria is advancing its regulation of cryptocurrency by implementing a tax framework for digital asset transactions and planning to issue full licenses to crypto exchanges in 2025.
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Nigeria is one of the leading countries in crypto adoption. A 2024 survey by Consensys found that 84% of Nigerians own a crypto wallet. Another report by Chainalysis ranked Nigeria second in the world for crypto adoption. Many Nigerians use stablecoins like USDT and USDC to protect themselves from the country’s high inflation and the falling value of the naira.
As the use of crypto increases in Nigeria, the government feels that such transactions will not only boost its revenue but also offer a organized and secure platform to crypto users.
