Profits and income derived from virtual asset transactions are now subject to taxation under Nigeria’s new tax laws, following the release of comprehensive guidelines by the Nigeria Revenue Service (NRS).
This is aimed at bringing cryptocurrencies and other blockchain-based digital assets fully into the country’s tax system.
The new Guidelines on Taxation of Virtual Assets, issued on July 31, 2026, provide the first detailed framework for taxing income and gains earned from cryptocurrencies, stablecoins, utility tokens, security tokens, non-fungible tokens (NFTs) and other blockchain-based assets.
The guidelines are intended to provide certainty for taxpayers, investors, exchanges and Virtual Asset Service Providers (VASPs), while ensuring that the rapidly growing digital asset ecosystem contributes its fair share to government revenue.
Under the guidelines, gains realised from the disposal, exchange or transfer of virtual assets are taxable in accordance with Nigeria’s tax laws. Income earned through mining, staking, validation activities, airdrops, token rewards, bounties and similar blockchain-based activities is also taxable where it constitutes income under the law.
The NRS said virtual assets are no longer outside the country’s tax net and should be treated in much the same way as conventional investments and financial assets.
The guidelines define virtual assets broadly to include digital representations of value that can be digitally traded or transferred and can be used for payment or investment purposes.
The definition covers cryptocurrencies such as Bitcoin and Ether, stablecoins, utility tokens, security tokens, governance tokens, NFTs and other blockchain-based digital assets recognised under Nigerian law.
According to the NRS, any individual or company receiving payment in cryptocurrency for goods or services must recognise the market value of the digital asset at the date of the transaction and include that value in taxable income. Businesses cannot avoid tax simply because payment was made in digital assets rather than in naira or another conventional currency.
The guidelines require all virtual assets to be valued using the prevailing market price on a recognised virtual asset exchange platform approved by the NRS at the time the transaction occurs. This valuation will form the basis for computing taxable income or gains arising from the transaction.
Individuals and businesses engaged in virtual asset activities are required to maintain complete books, records and supporting documentation for all transactions. These records must be sufficient to establish the date of acquisition, purchase cost, disposal value, transaction fees, counterparties and any other information required for tax assessment and audit purposes.
The guidelines also impose extensive reporting obligations on Virtual Asset Service Providers operating in Nigeria. Exchanges, custodians, brokers and other VASPs are required to register for tax purposes and submit information that enables the NRS to monitor taxable transactions within the sector. They must also comply with all applicable regulatory requirements governing their operations.
In addition, VASPs are required to report large or suspicious virtual asset transactions to the relevant authorities in line with Nigeria’s anti-money laundering and counter-terrorism financing framework. The reporting obligation is intended to improve transparency and strengthen oversight of digital asset transactions.
The guidelines make it clear that the Securities and Exchange Commission will continue to regulate virtual assets that qualify as securities, while the Nigeria Revenue Service will administer all tax matters relating to virtual asset transactions. The framework therefore separates regulatory oversight from tax administration while ensuring coordination among government agencies.
The NRS explained that the new framework is designed to improve voluntary tax compliance, eliminate uncertainty surrounding the taxation of digital assets and ensure that the rapidly expanding virtual asset industry contributes to national development through tax payments.
The guidelines also spell out taxpayers’ obligations. Every taxable person engaged in virtual asset activities must keep proper records, accurately report virtual asset transactions to the relevant tax authorities and file the necessary tax returns within the timelines prescribed by law.
Failure to comply may attract the administrative sanctions, interest and penalties provided under the Nigeria Tax Administration Act and other applicable tax legislation.
Although the guidelines do not create separate tax rates specifically for cryptocurrencies, they provide that virtual asset transactions will be taxed under the applicable provisions of Nigeria’s existing tax laws depending on the nature of the income or gain involved.
In other words, taxpayers will be subject to the same tax rules that apply to similar transactions involving conventional assets.
The document also does not create broad exemptions for virtual assets. Instead, any exemption available will be the one already provided under the relevant tax laws governing the particular category of income or transaction.
The release of the guidelines follows President Bola Tinubu’s Executive Order establishing a coordinated regulatory framework for virtual assets and digital innovation.
The Order directed the NRS to issue a dedicated tax policy for the sector to provide certainty for taxpayers, strengthen voluntary compliance and ensure that the expanding digital economy contributes fairly to government revenue.
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