Crypto Tax in Nigeria 2025 – Rules for Investors & Traders

Crypto tax in Nigeria 2025 is one of the hottest topics for investors, traders, and even NFT creators. The digital revolution has brought about a new class of assets, from cryptocurrencies like Bitcoin and Ethereum to NFTs and other virtual valuables.. In Nigeria, the regulatory landscape for these assets has undergone a significant transformation with the signing of landmark legislation. What was once an ambiguous “wild west” for investors and enthusiasts has now been brought into the country’s official tax net.

This comprehensive guide breaks down everything you need to know about how crypto and digital assets are taxed in Nigeria as of 2025. Drawing from the provisions of the new Investment and Securities Act (ISA) 2025 and the Nigeria Tax Act (NTA) 2025, we will demystify the new rules, explain key concepts in simple terms, and provide actionable advice to help you stay compliant. Whether you are a casual trader, a blockchain developer, or a seasoned investor, this guide will serve as your essential roadmap.

The New Regulatory Era – A Shift from Ambiguity to Clarity

For years, the status of digital assets in Nigeria was a topic of intense debate. Regulatory bodies issued circulars that sometimes seemed to contradict each other, leading to widespread confusion. However, the Federal Government’s recent legislative efforts have provided a much-needed framework.

The signing of the ISAon March 29, 2025, and the NTA on June 26, 2025, represents a pivotal moment. The core objective of these laws is to streamline and modernize Nigeria’s financial and tax systems, broadening the tax base and ensuring that the government can generate revenue from new, previously untaxed sectors of the economy.

The most significant change is that the ISA 2025 now officially recognizes and classifies digital and virtual assets as a form of “securities”. This legal classification means digital assets are no longer just digital curiosities; they are now treated as financial instruments, similar to stocks or bonds. This move brings the entire virtual asset market under the direct regulatory oversight of the Securities and Exchange Commission (SEC), providing a clear legal basis for their regulation and taxation.

How Crypto Tax in Nigeria 2025 Applies to Your Gains

Just like with traditional assets, you are not taxed just for holding crypto. The tax is triggered by specific events where a gain or profit is realized. The NTA 2025 makes it clear that “profits or gains from transactions in digital or virtual assets” are now subject to taxation.

The profit you make from the sale or exchange of digital assets is subject to a tax called Capital Gains Tax. Based on recent updates to the tax framework, any profit you make from the sale of a digital asset is taxed at a rate of 10%.

Understanding the Key Taxable Events

1. Selling Crypto for Fiat Currency: This is the most straightforward taxable event. When you sell a digital asset (e.g., Bitcoin, Ethereum, Solana) for Nigerian Naira or any other fiat currency (like USD), the profit you make is a taxable gain.
   • Example: You buy 1 ETH for ₦1,500,000. Six months later, you sell it for ₦2,500,000. Your profit is ₦1,000,000. This ₦1,000,000 is your taxable gain.
2. Trading One Crypto for Another: Many people believe that as long as they stay within the crypto ecosystem and do not convert to fiat, they do not have to pay tax. This is a common and costly misconception. The exchange of one digital asset for another is also considered a taxable event.
   • Example: You buy 10,000 DOGE with 1 ETH. If the value of 10,000 DOGE is higher than the value of the 1 ETH you initially purchased, you have a taxable gain.
3. Using Crypto to Purchase Goods or Services: When you use crypto to buy a product or service, it is legally treated as a “disposition” or sale of that asset. The difference between the value of the crypto when you bought it and its value at the time of the purchase is a taxable gain.
4. Profits from NFTs and other Digital Assets: The taxation rules apply to all “digital assets,” which includes NFTs, in-game assets, and other virtual valuables. If you create an NFT and sell it for a profit, or if you flip a rare in-game item for a higher value, the gains are subject to tax.

Navigating the Nuances: The Good News About Losses

The digital asset market is known for its volatility, and not all transactions result in a profit. The NTA 2025 provides a crucial provision that allows you to deduct losses from your gains. This is a key detail that can significantly reduce your tax liability.

You can use a capital loss to offset a capital gain. For example, if you made a ₦300,000 profit from one crypto trade but lost ₦100,000 on another, your net taxable gain would be ₦200,000 (₦300,000 – ₦100,000).

However, there is a critical rule to remember: you can only use losses from digital asset transactions to offset profits from other digital asset transactions. You cannot use a crypto loss to reduce your tax burden on your regular employment income or business profits. This is a common mistake that can lead to compliance issues.

Your Tax Toolkit – The Importance of Record Keeping

• Date of Transaction: The precise date of every buy, sell, or trade.
• Cost Basis: The original value of the digital asset when you acquired it. This is your “cost” for tax purposes.
• Proceeds: The value of the digital asset when you sold, traded, or used it.
• Fees: Any fees paid to exchanges or networks (gas fees) that can be added to your cost basis.

Acceptable records can include transaction histories from crypto exchanges, wallet screenshots, and digital receipts. The more organized and complete your records are, the easier it will be to file your taxes and respond to any inquiries from the tax authorities.

How the New Laws are Administered

The Federal Inland Revenue Service (FIRS) is responsible for the collection and administration of taxes in Nigeria. With the new tax laws in place, the FIRS will likely introduce new guidelines and mechanisms to ensure compliance among digital asset holders. Taxpayers can expect the FIRS to leverage its new powers and technology to monitor and enforce tax obligations in the digital space.

The government’s goal is to encourage voluntary compliance. This means they will work to simplify the process and provide support to taxpayers. However, non-compliance will be met with penalties that are proportional to the offence. This underscores the need to be proactive and informed about your tax responsibilities.

Practical Steps for Nigerian Crypto Holders and Investors

To ensure you are fully prepared for the new tax regime, here are some actionable steps you should take today:

1. Assess Your Portfolio: Take a comprehensive look at all your digital asset transactions from the past year. Compile all your trades, sales, and purchases in one place.
2. Organize Your Records: Use a spreadsheet or a dedicated crypto tax software to log every transaction. This will help you calculate your gains and losses accurately.
3. Educate Yourself: While this guide provides a solid overview, tax laws can be complex. Stay updated on official announcements from the FIRS and other relevant bodies.
4. Consider Professional Advice: If your transactions are complex or high-volume, Wells Accounting can guide you with expert tax advice and tailored strategies. Call us today to optimize your finances.

By taking these steps, you can ensure that you are not only compliant with the new tax laws but also positioned to navigate the evolving Nigerian financial landscape with confidence.