Nigeria is set to implement a sweeping new tax regime for digital assets, effective January 1, 2026, profoundly altering how gains from cryptocurrencies, tokens, NFTs, and other digital representations of value are treated. This shift explicitly brings digital assets under the national tax framework, impacting residents and non-residents alike, and marking a departure from previous regulatory ambiguities.

This significant regulatory overhaul is rooted in two key legislative instruments: the Investments and Securities Act (ISA) 2025, signed into law in April 2025, which explicitly classifies digital assets, including Bitcoin, as securities under the oversight of the Securities and Exchange Commission (SEC); and the Nigerian Tax and Nigerian Tax Administration Acts (NTA) 2025, passed on June 26, 2025. The NTA 2025 consolidates older tax laws and explicitly includes "digital assets" as chargeable assets, cementing their status as taxable in Nigeria.

Under the new framework, Nigerian residents, including citizens and individuals who have resided in the country for six months or more, will be subject to tax on their global gains from digital assets. This means holding crypto outside Nigeria no longer guarantees tax avoidance. For non-residents, taxation will apply only to gains sourced within Nigeria, such as trades executed on Nigerian platforms or digital assets linked to Nigerian on-chain infrastructure.

A crucial aspect of the new laws is the definition of a taxable event. Merely holding digital assets does not trigger a tax obligation; tax becomes due upon "disposal" or monetization. Disposal broadly includes selling crypto for fiat currency, swapping one token for another, or using digital assets to pay for goods or services. The taxable gain is calculated as the difference between the disposal price and the cost basis (what was paid, plus associated fees). Beyond disposals, income generated from mining or large-scale validation, staking rewards, airdrops, and yield farming are also categorized as taxable "income or gains" under the Acts.

The new NTA 2025 replaces the old flat 10% Capital Gains Tax (CGT) on crypto gains with a progressive income tax regime. For individuals, gains from digital assets are now folded into standard income tax rates, which can reach up to 25%. However, provisions are in place to shield smaller players: disposals with proceeds under ₦150 million and gains under ₦10 million may be exempt. For example, middle-tier traders might face effective tax rates in the 6-8% range depending on their income bracket, while significant winners could fall into the 25% top rate. Businesses operating crypto platforms or trading schemes will be subject to a 30% corporate tax on their net profits. A notable improvement is the deductibility of losses on digital asset trading, which can now be offset against gains from other digital assets, allowing for "netting" within the crypto "bucket," a significant contrast to prior rules where losses were rarely usable.

Enforcement of these new laws will heavily rely on advanced blockchain analytics, mandatory reporting by exchanges, and robust interagency cooperation. This proactive approach aligns with urges from international bodies like the IMF, which has called on Nigeria to block informal channels used to evade capital flow rules. Crypto exchanges and Virtual Asset Service Providers (VASPs) bear heavy obligations, including mandatory registration with the SEC, maintaining comprehensive Know Your Customer (KYC) records, and reporting user transaction data to the Nigeria Revenue Service (NRS, formerly FIRS) on a quarterly basis. Non-compliance can result in steep penalties, including an initial fine of ₦10 million, a monthly fine of ₦1 million, and potential license revocation.

This regulatory shift follows a period of explosive growth in Nigeria's crypto sector, even amidst the Central Bank's 2021 directive that barred banks from facilitating crypto deals, pushing much of the ecosystem underground. Despite this hostility, P2P crypto trades in Nigeria surged to $56.7 billion by mid-2023. With digital assets now explicitly legislated as taxable, it is a clear call to action for users and businesses alike.

To ensure compliance, individuals and businesses are advised to budget for potential taxes (assuming 5% to 25% on net profits), meticulously document all transactions (including purchases, disposal dates, fees, token swaps, airdrops, and staking rewards), and utilize crypto tax tools to trace cost basis. It is crucial to categorize holdings, differentiating between long-term holds and active trading, and to consult crypto-friendly tax advisors well before 2026. Using compliant exchanges or wallets that provide exportable transaction records and monitoring official guidance from the NRS and SEC for implementation rules, valuation norms, or safe harbour policies are also essential. Crypto businesses and platforms must upgrade their systems to support reporting, KYC, and audit capabilities.