Crypto Taxation in Nigeria 2026: What Every Digital Asset Trader Needs to Know

Azamosa Nathaniel

20 Jan 2026 • 10 min read

Crypto Taxation in Nigeria

Nigeria's cryptocurrency market keeps growing, even with regulatory challenges popping up. The country consistently ranks among the world's top adopters of digital assets. As we enter 2026, the Nigerian government has rolled out comprehensive tax regulations that change how crypto traders, investors, and businesses handle their digital asset transactions.

Whether you are a casual trader, professional investor, crypto miner, or business owner accepting cryptocurrency payments, understanding these new tax obligations isn't optional anymore. This guide walks you through everything you need to know about crypto taxation in Nigeria, including recent regulatory changes and what they mean for your wallet.

Understanding Nigeria's Crypto Tax Framework

Who Regulates Crypto Taxation?

Two primary authorities oversee cryptocurrency taxation in Nigeria:

Federal Inland Revenue Service (FIRS) - Now transitioning to the Nigeria Revenue Service (NRS), this agency collects crypto taxes and ensures compliance across all taxpayer categories.

Securities and Exchange Commission (SEC) - Regulates crypto exchanges, Virtual Asset Service Providers (VASPs), and makes sure digital asset platforms operate within established legal frameworks.

The regulatory foundation started with the Finance Act 2023, which officially brought cryptocurrency under Nigeria's tax system. The Investments and Securities Act (ISA) of 2025 strengthened this framework by classifying cryptocurrencies as securities subject to capital markets regulations.

How Nigeria Classifies Cryptocurrency

Unlike traditional fiat currency, cryptocurrency has not entirely become a legal tender in Nigeria. You can't walk into a marketplace and pay for goods directly with Bitcoin, Ethereum, or any other digital asset. Instead, the government treats cryptocurrency as digital property, similar to real estate, stocks, or other investment assets.

This classification has significant tax implications. When you buy and sell crypto, the government views it like trading stocks or selling property. Any profit you generate becomes taxable income.

The Three Types of Crypto Taxes in Nigeria

1. Capital Gains Tax (CGT)

Current Rate: 10% (2024-2025) New Rate from January 1, 2026: Progressive income tax rates up to 25%

Capital Gains Tax applies whenever you sell, swap, or dispose of cryptocurrency at a profit. This represents one of the most significant changes in the 2026 tax reform.

Here's what you will need to know:

Let's say you purchased 0.5 Bitcoin for ₦5,000,000 in March 2025. In December 2025, you sell that Bitcoin for ₦8,000,000. Your capital gain is ₦3,000,000. Under current rules, you'd pay 10% of this profit, which equals ₦300,000 in capital gains tax.

Starting January 1, 2026, crypto profits will be taxed as "chargeable gains" under personal income tax rates:

₦0 - ₦800,000: 0% tax
₦800,001 - ₦3,200,000: 15% tax
₦3,200,001 - ₦6,400,000: 18% tax
₦6,400,001 - ₦12,800,000: 21% tax
Above ₦12,800,000: 25% tax

Using the same example under 2026 rules, your ₦3,000,000 profit would be taxed at 15%, resulting in ₦450,000 in tax liability. That's a 50% increase from the previous 10% rate.

Important Exemptions:

Losses from crypto trading can be offset against gains in the same tax year
Only the profit (net gain) is taxable, not the total transaction amount

2. Income Tax

Tax Rates: Progressive rates from 7% to 25% depending on total annual income

Income tax on cryptocurrency applies to various earning activities beyond simple trading:

Crypto Mining Rewards: All cryptocurrency earned through mining operations is treated as taxable income at the Naira value when received.
Staking Rewards: Tokens earned from staking are immediately taxable when you receive them, not when you sell them.
Airdrop Tokens: Free tokens received through airdrops must be reported as income at their fair market value in Naira.
Salary in Cryptocurrency: If your employer pays you in Bitcoin or any digital asset, that income is subject to PAYE withholding tax.
Crypto as Business Payment: Businesses that accept cryptocurrency as payment must report those transactions as business income.

3. Value Added Tax (VAT)

Current Rate: 7.5%

VAT in the crypto space operates differently. In Nigeria, VAT isn't charged directly on cryptocurrency transactions or the digital assets themselves. Instead, it applies to services provided by crypto trading platforms and exchanges.

Who Needs to Pay Crypto Tax in Nigeria?

Individual Crypto Traders

You are required to register for crypto taxation if you:

Buy and sell cryptocurrency for profit through any platform
Hold crypto investments that generate gains when sold
Receive cryptocurrency as payment for services or products
Engage in peer-to-peer (P2P) crypto trading
Participate in crypto trading competitions or receive rewards

What you will need to do:

Report all crypto transactions when filling for annual tax returns.
Obtain and maintain a Tax Identification Number (TIN)
Ensure your TIN is linked to your BVN and NIN (as required by Nigerian tax and financial regulations)
File annual tax returns by March 31st each year
Maintain detailed records of all crypto transactions

Cryptocurrency Businesses and VASPs

Virtual Asset Service Providers face significantly more stringent requirements:

Pay 30% corporate income tax on net profits
Register for and collect VAT on applicable services
Submit monthly transaction reports to tax authorities
File corporate tax returns by June 30th annually

Penalties for Non-Compliance:

Initial penalty of ₦10,000,000 for the first month of non-compliance
Additional ₦1,000,000 penalty for each subsequent month
Potential license revocation by SEC
Criminal prosecution for intentional tax evasion

Major Changes in the 2026 Tax Reform

1. Higher Tax Rates on Crypto Profits

The previous flat 10% rate has been replaced with progressive income tax rates reaching up to 25% for high-income earners. A trader making ₦20 million in crypto profits annually will now pay 25% instead of 10%. That i's a tax increase from ₦2 million to ₦5 million.

2. Mandatory Exchange Reporting

Starting January 1, 2026, all cryptocurrency exchanges operating in Nigeria have to report user transactions directly to the Nigeria Revenue Service. This eliminates the honor system where taxpayers self-reported their crypto activities.

What happens after this change:

Exchanges will automatically share your transaction data with tax authorities
Under-reporting or hiding transactions becomes much easier to detect
Non-compliant exchanges risk losing their operating licenses

3. Enhanced AI-Driven Enforcement

The Nigeria Revenue Service is deploying artificial intelligence tools to monitor crypto transactions:

AI systems can identify suspicious trading patterns or unreported income
Algorithms compare data from banks, exchanges, and fintech platforms
Advanced tools trace cryptocurrency movements across public blockchains
Linking exchange KYC data with BVN, NIN, and TIN creates comprehensive taxpayer profiles

4. Stricter Penalties for Non-Compliance

For Individuals:

Fines starting at ₦10,000 but can escalate to millions
Criminal prosecution for intentional tax fraud
Potential imprisonment for severe cases
Asset seizure and bank account freezing

For Businesses and Exchanges:

Initial penalty of ₦10,000,000 for first-month non-compliance
₦1,000,000 for each additional month
Immediate license suspension or revocation
Criminal charges against directors and key officers

Important Update: Apex Network Fiat Withdrawal Fee Adjustment

Regulatory Change Effective January 1, 2026

In line with revised FIRS Stamp Duty regulations under the Nigeria Tax Act 2025, Apex Network is updating our fiat withdrawal transaction fee structure to ensure full regulatory compliance.

Here's what's changing:

Previous Fee: ₦100 per fiat withdrawal transaction New Fee: ₦150 per fiat withdrawal transaction Effective Date: January 1, 2026

Understanding the Increase:

This adjustment consists of two components:

Platform Service Fee: Our standard processing fee for converting cryptocurrency to Naira and transferring funds to your bank account
FIRS Stamp Duty: ₦50 government-mandated stamp duty on electronic transfers of ₦10,000 and above, now shifted to the sender (you) under the new Tax Act

Previously, stamp duty was deducted from the receiver's account. Under the 2026 reforms, this charge now applies to the transaction sender. In crypto-to-fiat withdrawals, that means the person initiating the withdrawal.

What This Means for You:

All fiat withdrawals from your Apex Network account to Nigerian bank accounts will attract the new ₦150 fee
This fee is automatically deducted from your withdrawal amount
The charge applies regardless of withdrawal amount (subject to minimum withdrawal limits)
There are no changes to crypto-to-crypto transactions or trading fees

Why This Change Is Necessary:

The Nigeria Tax Act 2025 requires all licensed financial service providers, including cryptocurrency platforms, to comply with revised stamp duty regulations. This isn't a voluntary fee increase. It's a regulatory requirement that applies uniformly across all banks, fintechs, and crypto platforms operating in Nigeria.

At Apex Network, transparency and regulatory compliance are core values. We believe in keeping our community fully informed about changes that affect their transactions while maintaining the secure, reliable service you've come to trust.

How to File Crypto Taxes

The Nigerian government has digitized tax filing through the TaxPro-Max online system:

Step-by-Step Filing Process:

Register on TaxPro-Max: Visit taxpromax.firs.gov.ng and create an account using your TIN, BVN, and NIN
Prepare Your Crypto Transaction Summary: Calculate total gains and losses for the tax year and organize transactions by category
Complete the Online Tax Return: Enter crypto income under "Capital Gains" and "Other Income" sections, then upload supporting documentation
Submit and Pay: Submit your return electronically and make payment through approved bank channels
Track Compliance Status: Monitor your filing status through the TaxPro-Max dashboard

Critical Deadlines

For Individual Taxpayers:

Annual Tax Return Deadline: March 31st of each year
Payment Deadline: Within 30 days of assessment or by March 31st

Penalty Structure:

Minimum automatic penalty of ₦10,000 for late filing
Alternative penalty of 5% of unpaid tax liability, whichever is higher
Interest accrues on unpaid taxes at FIRS-determined rates

How to Minimize Your Crypto Tax Legally

While tax obligations are non-negotiable, there are legitimate strategies to reduce your tax burden:

1. Maintain Meticulous Records

Use platforms like Apex Network that provide detailed, exportable transaction histories
Take screenshots of every significant transaction immediately
Document the Naira value at the exact time of each transaction
Keep records for at least six years

2. Claim All Legitimate Deductions

For Crypto Miners:

Mining hardware and equipment purchases
Electricity costs directly attributable to mining
Internet and connectivity expenses

For Professional Traders:

Trading platform subscription fees
Professional tax advisory services
Trading education courses and materials

3. Strategic Loss Harvesting

Sell losing crypto positions before year-end to realize losses
Offset capital losses against capital gains in the same tax year
Execute loss-harvesting trades in December for maximum benefit

4. Take Advantage of Annual Exemptions

Individual taxpayers receive a ₦10,000 annual capital gains tax exemption. While small, strategic planning can maximize its value.

One more thing: Tax planning should always be done in consultation with qualified Nigerian tax professionals who understand both crypto and current tax law.

What You Should Do Right Now

Don't wait until the last minute. Here's your action plan:

Immediate Actions (This Week)

Verify Your TIN Status: Check if you have an existing Tax Identification Number. If not, register immediately at the FIRS TaxPro-Max portal.
Link All Accounts: Connect your TIN to your BVN and NIN. Update your information on all crypto exchanges you use.
Gather 2025 Transaction Records: Export complete transaction histories from all exchanges and wallets. Download statements from Apex Network and any other platforms you've used.

Short-Term Actions (This Month)

Calculate Your Tax Liability: Use the new 2026 progressive tax rates to estimate what you will owe.
Consult a Tax Professional: Find a qualified Nigerian tax advisor with crypto experience and schedule a consultation before January 31, 2026.
Set Up Record-Keeping Systems: Create a dedicated folder for tax documents and set calendar reminders for quarterly reviews.

Before March 31, 2026 Deadline

File Your 2025 Tax Return: Complete your tax return through TaxPro-Max well before the deadline.
Make Your Tax Payment: Pay any tax owed promptly to avoid penalties and interest.

Frequently Asked Questions

Is cryptocurrency legal in Nigeria?

Yes, cryptocurrency is legal in Nigeria. While it's not recognized as legal tender, owning, buying, selling, and trading cryptocurrency is perfectly legal. The government regulates crypto as a digital asset or property, similar to stocks or real estate.

How much tax will I pay on crypto in 2026?

Starting January 1, 2026, crypto profits are taxed at progressive income tax rates ranging from 0% (for gains under ₦800,000) to 25% (for gains above ₦12,800,000). This represents a significant increase from the previous flat 10% rate.

Do I pay tax on the cryptocurrencyon cryptocurrency I'm just holding?

No. You only pay tax when you realize a gain by selling, swapping, or otherwise disposing of your cryptocurrency. Simply holding crypto in your wallet doesn't trigger any immediate tax liability.

How does the ₦150 Apex Network withdrawal fee work?

When you withdraw Naira from your Apex Network account to your bank account, a ₦150 fee is automatically deducted. This covers both platform processing costs and the mandatory ₦50 FIRS stamp duty. For example, if you withdraw ₦50,000, you will receive ₦49,850 in your bank account.

Do I need to report crypto losses?

Yes. While losses aren't taxable, reporting them is beneficial because you can offset losses against gains in the same tax year. This reduces your overall tax liability.

How Apex Network Supports Your Tax Compliance

At Apex Network, we understand that navigating crypto taxation can be complex. That's why we've built features specifically designed to make compliance easier:

Comprehensive Transaction Records

Access detailed, exportable transaction histories that include date and time stamps, precise Naira values, clear categorization, and fee breakdowns.

Real-Time Tax Information

Stay informed through regular updates about changing tax regulations, educational content, email notifications about compliance deadlines, and webinars featuring tax professionals.

Transparent Fee Structure

We believe in complete transparency with no hidden fees, clear communication about all adjustments, and advance notice of any policy changes.

Secure and Compliant Platform

Trade with confidence knowing we maintain full regulatory compliance with FIRS and SEC requirements, proper implementation of government-mandated reporting, and industry-leading security.

Prepare Today for a Compliant Tomorrow

The landscape of cryptocurrency taxation in Nigeria has fundamentally transformed. With the implementation of the Nigeria Tax Act 2025, comprehensive enforcement mechanisms, and mandatory exchange reporting, the era of unregulated crypto trading is over.

However, these changes aren't meant to discourage crypto adoption. By establishing clear rules and fair taxation, Nigeria is creating a more sustainable, legitimate environment for digital asset growth.

Here's what you will need to know:

Higher tax rates starting January 1, 2026 (up to 25% on large profits)
Mandatory exchange reporting eliminating unreported transactions
AI-driven enforcement making detection of non-compliance highly likely
Severe penalties for tax evasion
New withdrawal fees reflecting revised FIRS stamp duty regulations

Whether you are a seasoned trader or a curious beginner, understanding and complying with these tax regulations isn't optional anymore. The investment you make today in proper tax compliance will save you from exponentially larger costs tomorrow.

Take action today:

Review your 2025 crypto transactions
Calculate your estimated tax liability
Register or update your TIN
Consult with a qualified tax professional
Mark March 31, 2026 on your calendar

The future of crypto in Nigeria is bright, transparent, and increasingly regulated. Be part of that compliant future.

Need Help with Crypto Tax Compliance?

Apex Network offers comprehensive support services:

Detailed Transaction Reporting - Export complete transaction histories ready for tax filing
Regulatory Updates - Stay informed about changing requirements
Secure Trading Platform - Trade with confidence on a fully compliant exchange
Transparent Fees - No hidden charges, clear communication

Questions about the new ₦150 withdrawal fee or 2026 tax changes?

Our support team is available 24/7. Contact us through the Apex Network app or visit our help center.

Join thousands of Nigerians trading crypto the right way: secure, transparent, and fully compliant.

About Apex Network

Apex Network is Nigeria's trusted cryptocurrency trading platform, offering secure, fast, and compliant crypto-to-fiat services. With competitive rates, transparent fees, and industry-leading security, we make it easy for Nigerians to buy, sell, and trade digital assets while staying fully compliant.