Taxes, Reporting, and Your Crypto: The New Nigerian Tax Laws

Table of Contents

• What’s Changing Under the New Nigerian Tax Laws
• Who Needs to Pay: Traders, Businesses, and Crypto Earners
• How to Calculate and Report Your Crypto Taxes
• Tools & Platforms That Simplify Crypto Tax Reporting
• FAQs

As of June 26, 2025, the president of Nigeria, Bola Ahmed Tinubu, passed sweeping tax reform laws that explicitly bring digital assets (like crypto, NFTs, tokenised securities) into the tax net. 

That means your crypto trades, your earnings in crypto, your DeFi rewards… all of it can now be taxed under new rules. 

If you trade, invest, run a crypto business, or earn in crypto, here’s what you need to know about the new tax laws.

What’s Changing Under the New Nigerian Tax Laws

1. Digital / Virtual Assets Now Explicitly Taxable:

Digital or virtual assets (cryptocurrencies, tokens, NFTs, etc.) are now explicitly included under the list of chargeable assets. 

• Gains from disposing (selling, transferring, swapping) digital assets shall be taxable with no ambiguity.
• The law defines that when a digital asset is “situated” in Nigeria, it’s based on beneficial ownership, control, or interest by a person in Nigeria, not merely where the wallet or server is.
• Indirect transfers now count. If you dispose of shares in a company that owns crypto, or shift ownership via offshore vehicles, those are taxable events when they affect Nigerian assets.

In other words, you can’t claim that you held it offshore, so it’s safe. The new law examines legal structures to capture gains tied to Nigeria.

2. Capital Gains Tax (CGT) Is Recast:

Under older rules, capital gains (including on asset disposals) were taxed at a flat 10% rate. 

Now:

• Gains from the disposal of assets (including digital assets) are treated under personal income tax (PIT), meaning they follow progressive rates up to 25% for individuals.
• For corporate entities, CGT will align with corporate income tax (CIT) rates (e.g. 30% for many companies).
• Gains from a private residence, low-value chattel (personal items), and up to two personal vehicles may still be excluded under certain conditions.
• Disposal sales proceeds under NGN 150 million and gains under NGN 10 million may be exempt in some cases.
• The exemption for loss-of-employment compensation has been increased. Previously NGN 10 million, now up to NGN 50 million is exempt.

Many crypto disposals that previously might have paid only 10% may now pay up to 25% (for individual traders) or 30% (for companies), depending on income levels.

3. Expanded “Taxable Income”:

The reform doesn’t just change how disposal gains are taxed. It broadens what counts as income.

• The new law explicitly brings digital/virtual asset gains, as well as prizes, grants, and honoraria, into taxable income under the Personal Income Tax framework.
• So, crypto rewards you might have thought were “gifts” or fringe benefits could now be treated as taxable income.
• Individuals with close economic or family roots in Nigeria may also be treated as tax residents, meaning worldwide income becomes taxable, not just Nigeria-sourced.
• Benefits in kind (e.g., employer gives you a “free token allocation”) now must be valued under defined rules. The law caps valuation for rent-free accommodation (at 20% of gross income) and employer-provided assets (5% of cost).

This means more of your crypto-related income flows may fall under tax, not just the obvious ones.

4. New Residency & “Situs” Rules:

Older rules often tied taxation to physical location. The 2025 reforms adjust that:

• Digital assets are considered “situated in Nigeria” if the beneficial owner or controller is in Nigeria, regardless of where the digital asset custody or servers are located.
• Individuals with strong economic and family ties could be considered residents even if they spend time abroad. This expands the tax base for “resident” income.
• For non-resident persons (NRCs) or foreign entities doing business tied to Nigeria, new rules allow deemed profit calculations if actual profits are not easy to compute.
• For NRCs with Nigerian-source income, they may owe at least the withholding tax rate or a 4% flat tax on gross turnover if no withholding was applied.

Basically, this means you can’t hide behind “I live overseas, my wallet is abroad”. If you control or benefit from crypto in Nigeria, the tax net may reach you.

5. VAT / Digital Services & Withholding on Crypto-Related Services:

The new laws also touch the platforms, wallets, and services where many crypto transactions happen. 

• For services involving digital or virtual assets (e.g. exchange fees, wallet services), the VAT / digital services tax regime may apply.
• Nonresident service providers (e.g. foreign crypto platforms) may be required to collect and remit VAT when providing services to Nigerians.
• The law strengthens the authority’s capacity to enforce electronic invoicing / fiscal devices to track services and VAT in real-time.

So when you pay fees, swap tokens, or use wallets, the platform might be required to add VAT and report that. Those “small charges” can accumulate tax liability.

6. Minimum Tax, Force-of-Attraction & Anti-Avoidance Moves:

These are structural safeguards built into the new law to prevent tax avoidance via clever structuring.

• Minimum tax: For companies (including NRCs) with Nigerian operations, a minimum tax must be paid equal to either withholding tax already deducted or 4% of gross turnover (if no withholding). Whichever is higher.
• Force-of-attraction concept: The law allows that even if some business activities are carried out outside a “permanent establishment,” if they are sufficiently linked, they may be taxed.
• Indirect transfer rules: As mentioned above, disposing of shares in companies that indirectly control Nigerian assets (including crypto holdings) is now taxable. This prevents avoidance via offshore parent companies.

These anti-avoidance safeguards mean the tax authority is aiming to close loopholes many crypto actors might have used.

7. Structural Changes: Tax Agencies, Consolidation & Enforcement Powers:

Beyond the crypto-specific changes, the new regimen adjusts the institutions and rules around taxation that might also affect crypto users.

• The Nigeria Revenue Service (NRS) replaces FIRS as the federal tax authority, with greater autonomy, digital tools, and enforcement powers.
• The reforms repeal and consolidate multiple old tax acts (Capital Gains Tax Act, Companies Income Tax Act, Personal Income Tax Act, etc.) into a unified Nigeria Tax Act (NTA 2025).
• The law enhances the authority’s power to require data, audit, issue assessments, and enforce compliance.
• Electronic/digital filing, fiscal devices, and real-time reporting are emphasised more strongly to reduce tax leakages and improve transparency.

For crypto users, this means the tax authority is better equipped (in infrastructure and law) to detect underreporting, mismatch blockchain data with filings, and audit more confidently.

What These Changes Mean for Crypto Traders, Investors, Businesses and Users

Putting all these changes together, here’s what your crypto reality might look like in the future:

1. Crypto is no longer a grey area: gains, swaps, and income-related crypto flows are explicitly taxable.
2. Higher tax ceilings for gains: the old flat 10% is mostly gone. Gains now piggyback on progressive income rates (up to 25% for individuals).
3. Wider definitions of income: rewards, airdrops, grants can now be treated as taxable income.
4. Location and control matter more than wallet address: owning or controlling crypto from Nigeria triggers tax rules even if custody is offshore.
5. Stricter enforcement tools: minimum tax, indirect transfer rules, force-of-attraction, and stronger audit powers make avoidance harder.
6. Services and platforms are in scope: fees, wallets, and exchanges may attract VAT or withholding obligations.
7. Institutional power is upgraded: the new tax authority, digital filing, and unified tax laws mean less room to hide.

If you’re a crypto trader, investor, or business, these changes alter both how much you’ll pay and how diligently you must document.

Who Needs to Pay: Traders, Businesses, and Crypto Earners

If you make money from crypto, by trading, providing services, running a crypto business, or getting paid in tokens, you’re almost certainly in the tax net under the 2025 reforms. 

How you pay, how much, and when depends on who you are and the type of activity you do. 

Let’s break this down.

1. Individual Traders — Retail, P2P, Speculators:

Who they are: People buying and selling crypto for profit on exchanges, P2P markets or OTC.

What’s taxable:

• Every disposal is a taxable event: selling crypto to naira, swapping one token for another, or gifting/sending in some cases.
• Tax is on the gain (sale proceeds in naira minus your cost basis in naira, minus allowable fees).

Example:

• Bought 5,000 USDT when 1 USDT = ₦1,000 → cost basis ₦5,000,000.
• Sold later when 1 USDT = ₦1,100 → proceeds ₦5,500,000.
• Gain = ₦500,000 → taxed under the new rules (individual rates up to ~25% depending on your overall income bracket).

Practical tips for traders:

• Keep a running spreadsheet or use a tool that timestamps the naira value at the time of each trade.
• Tracking fees and network costs reduces taxable gain.
• Keep chat records, invoices and bank deposit slips to prove dates and values.

2. Crypto businesses, Exchanges, and OTC Desks:

Who they are: Platforms that match trades, custody services, OTC desks, liquidity providers, and token issuers.

What’s taxable and required:

• Corporate income tax (CIT) on profits (standard corporate rates apply).
• VAT / digital services tax on service fees (platform commissions, wallet fees). In many cases, VAT ~7.5% applies to services.
• Reporting obligations: exchanges and VASPs may be required to collect user transaction data and share reports with the tax authority; they may also act as withholding agents for certain taxes.
• Minimum tax and anti-avoidance rules may mean you pay tax based on turnover if profit reporting is unclear.

Practical steps for businesses:

• Implement KYC and transaction logging that can be exported (CSV/JSON) for tax audits.
• Build an invoice and VAT collection workflow for all fees.
• Talk to a tax lawyer to design withholding and remittance processes early. Regulators expect platforms to help with compliance.

3. Freelancers & Remote Workers Paid in Crypto:

Who they are: People paid in BTC/USDT/other tokens for services; local clients or international clients paying in crypto.

How tax applies:

• Crypto received as payment = income at the naira value on the date of receipt. You must declare this as part of your taxable income.
• If you later sell that crypto and make additional profit over the value at receipt, that additional amount is a disposal gain and also taxable.

Example:

• Receives 0.5 BTC for a design job. Market value on receipt = ₦10,000,000 → report ₦10,000,000 as income.
• Sells that 0.5 BTC later for ₦12,000,000 → additional ₦2,000,000 is a taxable gain on disposal.

Practical checklist for freelancers:

• Invoice clients showing the naira equivalent at receipt.
• Save exchange rate snapshots, wallet receipts and bank conversion records.
• Consider automated tools to convert and log naira values at the time of payment.

4. Investors & HODLers:

Who they are: People who buy crypto as an investment, not active traders.

Key point:

• You don’t pay tax on unrealised gains. Tax happens when you dispose (sell, swap, pay with crypto).
• But if you earn staking rewards or airdrops, these may be taxable as income when received.

Action steps for investors:

• Keep long-term logs of buy dates and prices so when you sell, you can compute the correct cost bases.
• Track staking/airdrop receipts and value them when received.

5. Non-Residents and Cross-Border Providers:

Who they are: Foreign platforms, consultants or businesses providing crypto services to Nigerian users.

What changes for them:

• The law widens “situs” and residency tests by stating that services delivered to Nigerian users can trigger VAT and withholding obligations.
• Non-resident providers may need to register for VAT and for other tax remittance duties.

Practical step: Non-resident firms should consult Nigerian tax counsel and consider local registration or appointing a Nigerian tax agent.

How to Calculate and Report Your Crypto Taxes

Step 1: Understand What Counts as a “Taxable Event”

A taxable event is any crypto action that gives you profit, income, or value in naira. The 2025 Nigerian Tax Act makes this explicit for both individuals and businesses.

Here’s a quick checklist:

If you only buy and hold, and haven’t sold, swapped, or spent it yet, you don’t owe tax until you dispose of the asset.

Step 2: Determine the Type of Tax You Owe:

Not all crypto income is taxed the same way. The type depends on how you earned or used your crypto.

So before you start calculating, classify your crypto activity.

Step 3: Keep Accurate Records of Every Transaction

To calculate crypto taxes correctly, you must have clear, timestamped data. This is where most traders struggle with missing trade histories, lost P2P receipts, or no record of naira values.

You should always record these details for every crypto activity:

• Date and time of transaction
• Type of transaction (buy, sell, swap, earn, transfer, etc.)
• Amount of crypto
• Price per crypto (in NGN or USD equivalent)
• Total naira value of transaction
• Transaction fees (exchange, blockchain, or gas fees)
• Counterparty or platform (e.g., Obiex, Binance, KuCoin)

💡 Pro Tip: Keep records for at least six years, as tax authorities can audit past returns.

Step 4: Calculate Your Capital Gains

Capital gains = Selling price – (Cost price + Transaction fees)

Let’s look at three examples.

Example 1: Trader 

• Bought 5,000 USDT when ₦1000 = $1 → ₦5,000,000
• Sold later when ₦1 = $1100 → ₦5,500,000
• Exchange fee = ₦20,000

✅ Taxable gain = ₦5,500,000 – (₦5,000,000 + ₦20,000) = ₦480,000

Tunde must pay income tax on ₦480,000 at his applicable rate (10–25%).

Example 2: Freelancer 

• Received 0.5 BTC for design work when 1 BTC = ₦20,000,000 → ₦10,000,000 income.
• Six months later, she sells 0.5 BTC for ₦12,000,000.

✅ Income tax: ₦10,000,000 declared when received.✅ Capital gain: ₦12,000,000 – ₦10,000,000 = ₦2,000,000 → taxed separately as capital gain.

Example 3: Investor 

• Bought 1 ETH at ₦1,200,000
• Sold 1 ETH at ₦1,800,000
• Paid ₦10,000 network fee

✅ Capital gain = ₦1,800,000 – (₦1,200,000 + ₦10,000) = ₦590,000

The investor owes tax on ₦590,000, based on his total annual income bracket.

Step 5: Convert Crypto Values to Naira

The tax law requires you to report in naira, not in BTC, USDT, or USD.

For accuracy:

• Use the naira exchange rate (official or verifiable market rate) on the day of the transaction.
• Most traders use Crypto exchange rates like Obiex or CBN reference rates for this.
• Always note the conversion source in your record for audit clarity.

Example:If 1 USDT = ₦1,506 on the day you sold, use ₦1,506 per USDT for your gain calculation.

Step 6: Deduct Allowable Expenses

Certain costs directly linked to your trading can be deducted before calculating your final gain.

💡 Important: Personal expenses (internet, power, data subscriptions, etc.) do not count unless you are a registered crypto business.

Step 7: File and Report to the Tax Authority

Once you’ve calculated your gains or income, it’s time to file officially.

For Individuals (Retail Traders, Freelancers):

• File under Personal Income Tax (PIT) to the Nigeria Revenue Service (NRS) or your state’s tax office.
• Use the Self-Assessment Filing method, available online at the NRS portal.
• Include your total annual income (salary + crypto + freelance + other earnings).
• Attach supporting documents (crypto transaction summary, invoices, exchange statements).

For Businesses (Exchanges, Startups):

• File Corporate Income Tax (CIT) and Value Added Tax (VAT) returns.
• Declare all revenue, including crypto trading or service fees.
• Deduct legitimate business expenses before calculating net profit.
• File quarterly VAT returns if your platform charges fees in naira or stablecoins.

Tools & Platforms That Simplify Crypto Tax Reporting

Calculating crypto taxes manually is a nightmare. Between keeping track of transaction histories, converting exchange rates, identifying taxable events, and separating capital gains from business income, it’s easy to make mistakes. That’s why having the right tools and platforms is essential. 

The following tools automate record-keeping, generate clear reports, and make filing with the Federal Inland Revenue Service (FIRS) much easier.

1. Exchange Platforms with Record Features:

If you trade actively, your exchange is your first and most reliable source of tax records. Platforms like Obiex allow users to access complete trade histories, including deposits, withdrawals, and conversions. This makes it easy to identify taxable events and calculate profits or losses without combing through countless transactions manually.

Obiex’s transaction records can be exported in a few clicks, allowing users to share clean, transparent data with accountants or tax advisors. This is crucial because FIRS requires accurate trade data when verifying crypto-related income or capital gains.

Why it helps:

• Automatically tracks every buy, sell, and conversion
• Provides exportable reports for FIRS filing
• Reduces risk of missing transactions or incorrect calculations
• Saves time compared to manual record-keeping

2. Global Crypto Tax Software:

While designed for global use, tools like Koinly, CoinTracker, and Accointing also support Nigerian crypto wallets and exchanges. They help by:

• Syncing automatically with multiple wallets and exchanges
• Calculating capital gains/losses using real-time market prices
• Converting values into naira (if you set NGN as your reporting currency)
• Generating tax reports that can be shared with local accountants

These tools make it simple for crypto users who trade across multiple platforms or receive payments in stablecoins.

Why it helps:

• Handles complex transaction histories across multiple accounts
• Automatically detects taxable events (e.g., swaps, NFT sales, staking rewards)
• Reduces the chance of underreporting or double-counting income
• Offers pre-formatted tax summaries compatible with Excel or PDF submissions

3. Crypto Portfolio Trackers with Tax Integration:

If you’re not ready to invest in full tax software, a portfolio tracker can help maintain consistent records. Platforms like CoinStats, Delta, and Zerion give you a live overview of your crypto holdings while tagging taxable activities.

Although they don’t produce tax reports directly, these tools can export CSV files that you or your accountant can plug into your preferred tax software.

Why it helps:

• Keeps accurate, time-stamped records of asset prices and movements
• Works well for individuals who make occasional trades or hold long-term positions
• Simplifies valuation during FIRS audits or income verification

4. Cloud-Based Accounting Tools for Businesses:

For crypto startups and Web3 companies, integrating accounting software is a game-changer. QuickBooks and Xero, for instance, can be customised to track crypto transactions as part of your business income or expenses.

When integrated with exchanges or crypto payment processors, these tools automatically record:

• Incoming crypto payments (invoices or sales)
• Conversion values in naira
• Transaction fees and gas costs
• Payout histories to employees or freelancers

Why it helps:

• Simplifies compliance for registered businesses and startups
• Keeps audit-ready records for both tax and corporate filings
• Works seamlessly with traditional accounting workflows

5. Local Tax Advisory Tools and Partnerships:

Some Nigerian tax advisory firms are now offering crypto-focused compliance services, combining software with expert review. These firms use localised templates based on FIRS requirements and understand the nuances of Nigerian crypto taxation better than global platforms.

Why it helps:

• Offers tailored support for Nigerian regulations
• Provides certified documentation accepted by FIRS
• Ideal for high-volume traders, OTC desks, and crypto startups

Stay compliant and trade confidently with Obiex. 

👉 Sign up now to keep your records clean and your crypto moving.

FAQs

Q1. Do I have to pay taxes on crypto in Nigeria?

Yes. Under the 2025 tax reforms, gains from crypto disposals and income from crypto activities are taxable.

Q2. How does the Nigerian government track crypto transactions?

Via reporting obligations on exchanges/ VASPs, data sharing, KYC requirements, and blockchain matching.

Q3. What is the crypto tax rate in Nigeria?

It depends on your tax bracket. Gains may be taxed up to 25% for individuals. VAT on service fees is about 7.5%.

Q4. How can I calculate my crypto gains for tax purposes?

Subtract the cost basis (what you paid) plus fees from the disposal proceeds, in naira values at the time of trade.

Q5. Can I use Obiex transaction records for my tax filing?

Yes. Clean, timestamped history helps you prepare your returns.

Q6. If I receive crypto as payment, is that taxed?

Yes, you must record the naira equivalent at the time of receipt as income.

Q7. What if I swapped BTC for ETH?

That’s a disposal event. The difference in value between what you got vs. cost basis is taxable.

Q8. Can I deduct transaction fees or loss?

Yes, fees can reduce gains. But deductions/loss offsetting rules may depend on final regulations.

Q9. What if I missed past years’ crypto taxes?

It’s best to regularise. Voluntary disclosure may reduce penalties. Consult a tax lawyer.

Q10. When do I have to start following the new rules?

The new laws took effect June 26, 2025. But full compliance is expected from January 1, 2026. 

Disclaimer: This article was written to provide guidance and understanding. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.