Nigeria

Nigeria classifies cryptocurrencies as "digital assets" under the Nigeria Tax Administration Act (NTAA) 2025. The country has a regulated crypto environment, meaning a dedicated legal framework is in place for tracking and taxing crypto profits. The Nigerian Revenue Service (NRS), formerly FIRS, oversees cryptocurrency taxation and compliance under the NTAA 2025. This framework treats earnings from digital activities as part of the national tax base. For individuals, profits from cryptocurrency are taxed as ordinary income at progressive rates up to 24%. An annual exemption threshold of N800,000 applies to your total income, including any crypto profits. There is no separate capital gains tax, instead, any realized gains from selling crypto are added to your ordinary income. There is no distinction or benefit for holding crypto for short versus long periods, and no tax is levied on simply holding crypto assets—only on realized gains when converted to fiat currency or other cryptocurrencies. Businesses dealing with crypto are subject to standard corporate tax rates, as no crypto-specific corporate rate has been detailed. Specific crypto activities are largely treated as income. Earnings from staking are taxed as ordinary income upon realization. Profits from NFTs are also taxed as digital assets under ordinary income rules. Converting one cryptocurrency to another (crypto-to-crypto swaps) is considered a taxable realization event, with profits likely included in your income taxation. Official guidance for crypto mining and decentralized finance (DeFi) activities like yield farming or liquidity pools is not specifically addressed in the current framework. There is also no explicit information regarding Value Added Tax (VAT) on crypto transactions or services. Significant changes are coming into effect on January 1, 2026, under the NTAA 2025 framework. These reforms mandate linking all crypto transactions to an individual's Tax Identification Number (TIN) or National Identity Number (NIN). Virtual Asset Service Providers (VASPs), such as crypto exchanges, will have mandatory monthly reporting obligations for customer details and transactions, with records required to be kept for seven years. These measures align with international standards like the OECD's Crypto-Asset Reporting Framework (CARF).