Crypto taxation to be mandated under proposed Nigerian law, according to a report
Nigeria has taken a significant step forward in regulating the cryptocurrency market, with the Securities and Exchange Commission (SEC) revising its regulations to enable cryptocurrency taxation. The bill regarding these revised regulations is currently under review by Nigerian lawmakers and is expected to pass this quarter.
Cryptocurrencies have been recognized as securities under the Investments and Securities Act (ISA) 2025, bringing them under the purview of the SEC. This classification provides more oversight and protection for investors. Cryptocurrency gains above ₦10 million are subject to a 10% Capital Gains Tax, with taxable events including selling, trading, spending crypto, receiving crypto as payments, mining, staking, masternodes, airdrops, and hard forks.
The SEC requires virtual asset service providers (VASPs), digital asset operators (DOPs), and digital asset exchanges (DAEs) to register and obtain licenses. This framework includes anti-money laundering (AML) and know-your-customer (KYC) obligations. In June 2025, the SEC released new digital asset rules to further regulate the crypto ecosystem, although the licensing process was delayed to ensure stricter due diligence.
The aim is to expand and strengthen the licensing process for VASPs and other crypto service providers, creating a more structured environment for crypto businesses. Two exchanges - Busha and Quidax - have already received provisional licenses to operate in Nigeria as a result of the SEC's regulatory drive.
The revised regulations also aim to ensure that all eligible transactions on regulated exchanges in Nigeria are brought into the formal tax net. However, specific details on additional levies beyond the existing tax structure are not widely reported. The SEC has not disclosed the tax percentage or the expected revenue from these levies, but the regulation aims to provide clarity and stability to the crypto market, which could indirectly influence the economic environment and encourage more investment.
Meanwhile, Kenya has also implemented cryptocurrency taxation rules, albeit with restrictions seen as harsh. A 1.5% digital service tax is levied on exchanges, a 16% value-added tax, a 15% capital gains tax, and an income tax calculated on the tax band for profits made on trades. Kenya introduced a 3% digital asset tax (DAT) as part of its amended Finance Act in 2023, in addition to existing taxes and levies on crypto.
For detailed information on additional levies or specific regulatory updates, it would be advisable to consult official SEC publications or announcements from the Nigerian government. As the cryptocurrency market continues to evolve, it is essential for governments and regulatory bodies to adapt their frameworks to ensure a secure and transparent environment for investors and businesses alike.
- The Securities and Exchange Commission (SEC) in Nigeria has classified cryptocurrencies as securities under the Investments and Securities Act (ISA) 2025, bringing them under its regulatory purview.
- Cryptocurrency gains above ₦10 million are subject to a 10% Capital Gains Tax in Nigeria, with taxable events including selling, trading, spending crypto, receiving crypto as payments, mining, staking, masternodes, airdrops, and hard forks.
- In order to operate legally in Nigeria, virtual asset service providers (VASPs), digital asset operators (DOPs), and digital asset exchanges (DAEs) must register and obtain licenses from the SEC, as part of the measures to ensure anti-money laundering (AML) and know-your-customer (KYC) obligations.
- Two exchanges - Busha and Quidax - have already received provisional licenses to operate in Nigeria as a result of the SEC's regulatory drive aiming to create a more structured environment for crypto businesses.
- In addition to existing taxes, Kenya has implemented a 3% digital asset tax (DAT) as part of its amended Finance Act in 2023, in an effort to regulate the cryptocurrency market, and has been criticized for the perceived harshness of the restrictions.
