
Nigeria’s Revenue Service has ordered crypto exchanges and peer-to-peer marketplaces to withhold 1% from proceeds on taxable digital asset disposals.
Staking, mining, airdrops and decentralised finance face a 10% withholding rate, while stablecoin sales are exempt from the 1% rate.
Income tax deducted at source and stamp duty “shall be remitted to the Service in the originating token,” the Nigeria Revenue Service said.
Token-to-fiat and fiat-to-token transactions face a 1.5% stamp duty, while value-added tax must be paid in the payment currency.
Withheld amounts count towards final income tax liabilities, while companies other than small businesses face a 30% income tax rate.
Nigeria’s wider tax overhaul took effect on 1 January 2026 and requires virtual asset providers to report customer and transaction information.
The new framework replaced the previous 10% capital gains tax treatment introduced for crypto disposals under Nigeria’s Finance Act 2023.
Binance is seeking an out-of-court settlement with Nigerian authorities over a $2 billion tax dispute, signalling a potential resolution to one of its largest legal battles.
The Central Bank of Nigeria has selected KuCoin as the only global crypto exchange in its pilot supervisory program for virtual asset service providers.