The Nigeria Revenue Service (NRS) has released new rules on taxing virtual assets. This gives clear instructions on how to manage cryptocurrencies and other digital asset transactions in Nigeria.
In a statement on Monday, the tax authority mentioned that these rules target taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners, and others involved in the virtual asset space.
These new guidelines follow President Bola Tinubu's signing of the Presidential Executive Order on Virtual Assets Coordination, 2026, on July 17. This order aims to unify digital asset regulations and reduce financial fraud.
NRS explained that these guidelines create a clear process for taxing virtual assets in Nigeria. The agency stated the document outlines tax duties related to virtual asset transactions. This includes registration, reporting, record-keeping, valuation rules, and how to tax digital asset transactions.
The NRS said the guidelines align with the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025. They are part of efforts to give more clarity and consistency in managing Nigeria's tax laws as the virtual asset space grows.
The agency aims to encourage voluntary tax payment, improve transparency, and help build a fair tax system for digital asset transactions. NRS urged all affected taxpayers and stakeholders to read the guidelines and comply fully with their tax duties.
Penalties
Under these guidelines, VASPs and P2P marketplace operators who don't meet their obligations face serious penalties. They will pay N10 million for the first month of not complying and N1 million for each month after that until they comply.
Their obligations include deducting taxes from taxable transactions, collecting stamp duties when needed, accounting for value-added tax (VAT), paying taxes to the NRS on time, filing statutory returns, and keeping accurate books and records.
The guidelines also list other penalties. For failing to file returns or for filing incomplete returns, there is a N100,000 fine for the first month of default, N50,000 for each following month, and a penalty of 40 percent of tax not deducted at source.
Failing to register leads to a N50,000 penalty in the first month and N25,000 for each month after that. Not keeping records results in a N50,000 fine for companies and N10,000 for individuals.
If they ignore demands or notices, there is a N100,000 fine for the first day and N10,000 for each day afterward. Not disclosing facts in a tax document can lead to a N100,000 penalty, a N50,000 fine if convicted, or up to three years in jail.
Additionally, not notifying a change of address results in a N100,000 penalty for the first month and N50,000 for each month after that. If tax deducted is not paid, there is a 10 percent annual penalty plus interest based on the CBN’s Monetary Policy Rate (MPR).
The NRS stated that the penalties mentioned apply to all defaults related to these guidelines and do not exclude any other penalties, interests, or offenses under the NTAA or any other law.
NRS also categorized virtual assets into three groups, each with different tax rules. These groups include cryptocurrencies and exchange tokens, fiat-referenced stablecoins, and virtual assets showing financial or investment rights, like profit-sharing or revenue-sharing tokens.
Special crypto rules
For stablecoins, NRS said gains will be based on the underlying fiat currency, and no withholding tax will apply at the point of disposal. Cross-border transactions turning naira into virtual assets for international payments will not count as taxable disposals. However, any later sale of those assets will attract the relevant taxes.
The agency added that virtual assets received as salaries, wages, or professional fees will be valued at their fair market value on the day they are received and taxed under Nigeria Tax Act rules.
Tokens gained from staking, mining, decentralized finance (DeFi) rewards, and liquidity incentives will be seen as taxable income on the day they are received. The recognized value will serve as the acquisition cost for future sales.
For non-fungible tokens (NFTs), NRS stated that income from NFT sales by creators will be treated as business income. Gains made by investors selling NFTs will be taxed according to the virtual asset guidelines.
The NRS said this new framework aims to give certainty to taxpayers while improving compliance. It ensures that Nigeria's fast-growing virtual asset space is included in the country's tax system. These guidelines are the latest attempt by NRS to improve tax administration and increase revenue collection after the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.
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