Nigeria to impose 15% tax on cryptocurrency trading profits from 2026

Starting in January 2026, Nigeria will implement a new tax regime imposing a 15% levy on income from cryptocurrency and other virtual asset transactions. This move marks the first official taxation in the country’s history, aimed at regulating and legalizing the digital asset market.

Nigeria’s Tax Reform Committee emphasized that the new tax will be part of the personal income tax and is intended to create a transparent system of interaction between the government and crypto market participants. Authorities believe the tax will facilitate regular reporting of digital asset transactions and increase trust in the country’s financial system.

Cryptocurrency trading through financial intermediaries licensed by the Central Bank of Nigeria (CBN) was officially prohibited until 2023. However, the growing popularity of digital assets and the increased activity of private investors prompted the government to reconsider its approach to regulating the industry. Now, according to authorities, cryptocurrency is no longer a gray area of ​​the economy and is becoming part of the legitimate financial ecosystem.

Taiwo Oyedele, Chairman of the Tax Reforms Committee, noted that the new law is fair and competitive by global standards. He explained that the tax will only be levied on net profits from cryptocurrency trading, while losses will be exempt. If a trader’s annual income from cryptocurrency trading does not exceed 800,000 naira (approximately $545), the tax rate will be 0%.

Under the new regulations, Nigerian crypto traders are required to self-declare their profits, while banks and licensed intermediaries are required to maintain records and provide transaction data to government agencies.

Economic and Financial Crimes Commission (EFCC) Chairman Ola Olukoyede previously called cryptocurrencies «the new oil,» emphasizing their enormous economic potential for the country. Authorities hope that legalizing and taxing the crypto market will help replenish the state budget and attract investors to Nigeria’s digital economy.