For years, cryptocurrency activity in Nigeria has sat in a grey zone, widely adopted by users, lightly supervised by regulators, and largely unreported in government revenue records. That gap is now narrowing, as authorities move to extend the country’s tax framework to cover crypto transactions and withdrawals, following a surge in revenue from digital payments.
With official data showing that the Electronic Money Transfer Levy (EMTL) collected ₦392.78 billion in the first 11 months of 2025, more than double the amount collected in the same period in 2024, authorities are now looking to extend taxation to crypto-to-fiat withdrawals and other crypto-related income.
Early in January 2026, the Nigerian tax authorities announced that under the Nigeria Tax Administration Act (NTAA) 2025, profits from cryptocurrency activities, including trading gains, mining proceeds, and rewards, are now subject to personal income tax. Several cryptocurrency exchanges have informed users that a ₦50 stamp duty will apply to eligible naira withdrawals linked to cryptocurrency activity, starting in 2026. The levy, reclassified under the 2025 Tax Act, expands the scope of the previous Electronic Money Transfer Levy from traditional banks and fintech platforms to regulated crypto-to-fiat transactions.
Officials project that revenue from the expanded levy could exceed ₦456 billion in 2026, reinforcing the government’s efforts to diversify income sources amid fiscal pressure. The move comes as Nigeria positions itself to formalise the fast-growing digital economy and close longstanding enforcement gaps in tracking crypto earnings.
Compliance Rules Bring Crypto Into the Tax Net
The tax extension is part of a broader compliance overhaul. Virtual asset service providers (VASPs) are required to collect Tax Identification Numbers (TINs) and, in some cases, link accounts to National Identification Numbers (NINs). Platforms must also maintain detailed transaction records, submit regular reports to tax authorities, and retain data for audits.
Officials say this strategy allows authorities to tie crypto activity to real-world identities rather than relying solely on blockchain surveillance, helping ensure digital asset earnings are properly assessed alongside other declared income.
Historical Context and Market Impact
Right before, Nigeria had maintained a cautious stance toward cryptocurrency. In 2021, the Central Bank of Nigeria (CBN) barred banks from facilitating crypto transactions. In 2023, regulatory oversight was updated to allow virtual asset service providers, but exchanges such as Binance Nigeria were forced to suspend local operations over licensing issues. These measures reflect the government’s historical scepticism toward crypto, making the recent tax announcement a major policy pivot.
While the ₦50 stamp duty per withdrawal may seem modest, it signals that cryptocurrency is increasingly treated as a formal economic sector. High-frequency traders and peer-to-peer merchants may adjust their operations as cumulative fees rise, though some platforms are temporarily absorbing costs to remain competitive.
Nigeria handled an estimated $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, placing it among the world’s most active crypto markets. With the country’s tax-to-GDP ratio still below target, authorities now view digital assets as a scalable, trackable source of revenue rather than an informal or fringe activity.
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