Nigeria Introduces Taxation on Crypto Exchange Transactions

Nigerian authorities are revising digital asset regulations to impose taxes on cryptocurrency transactions conducted on exchanges.

The Nigerian Securities and Exchange Commission (SEC) announced that it’s developing new rules to ensure taxation on all relevant transactions occurring on regulated crypto exchanges. A draft bill establishing the tax framework for such transactions was submitted to Nigeria’s legislative bodies and is currently under discussion. The law is expected to be enacted in Q1 2025, according to Bloomberg.

Moreover, the Nigerian regulator plans to expand licensing requirements for crypto platforms, including introducing permits for trading on CEXs. This move aims to enhance oversight of transactions and facilitate their taxation. The SEC believes that such measures will create safer conditions for investors and improve crypto market transparency.

The implementation of cryptocurrency transaction taxes and centralized exchange regulation in Nigeria is expected to accelerate the integration of digital assets into the country’s economic system and increase government revenue.

Nigeria was among the global leaders in crypto adoption in 2024. The country was also actively involved in Web3 initiatives, such as the Nigerian National Information Technology Development Agency’s project to build a state-backed blockchain network, Nigerium. Additionally, the government of Lagos announced plans to create a tokenized real estate market.