Nigeria moves to impose 30% income tax on crypto firms

Nigeria is preparing to impose a 30 percent income tax on companies operating in the cryptocurrency sector, according to Techpoint Africa, in a move that places digital asset firms on a par with other high-revenue industries in the country’s tax code.

The levy, as Techpoint Africa reported, applies to firms whose profits are derived from digital asset transactions and reflects the government’s effort to bring a fast-growing but loosely policed corner of the financial system into the formal tax net. The 30 percent rate matches the company income tax applied to commercial banks and other regulated financial institutions operating in Nigeria.

A maturing market

Nigeria has consistently ranked among the world’s most active retail crypto markets, with peer-to-peer trading flourishing even after the Central Bank of Nigeria directed deposit banks in 2021 to stop facilitating transactions involving digital currencies. That directive pushed trading onto informal channels and over-the-counter desks but did not slow adoption, and regulators have since signalled a willingness to work with the industry rather than shut it down.

Parallel efforts by the Securities and Exchange Commission to draft a framework for virtual asset service providers have been under way for several years, alongside ongoing discussions about licensing exchanges and custodial services. Taxation is the latest front in that broader regulatory push, and officials have framed the revenue take as both a fiscal measure and a tool for oversight.

Industry response

Operators in the sector have argued that an income tax of this size, layered on existing levies, could compress margins for thinly capitalised firms and risk pushing activity further offshore. Exchanges and fintech groups have previously called for clearer rules and lower entry barriers, pointing to the country’s large user base as a base that could be captured domestically if the regulatory climate remains competitive with global hubs.

How the new rate will be administered, and which firms it captures, is expected to become clearer as the relevant tax authorities publish guidance in the coming months.

Sources

This report was written from coverage published by the following news organisations. Follow the links for the original reporting.

• Techpoint Africa — Crypto firms face 30% income tax in Nigeria