Nigeria is set to update its digital asset regulations to introduce taxes on cryptocurrency transactions, according to a Bloomberg report. The plan aims to bring all eligible crypto transactions on regulated exchanges under the tax system, potentially generating significant revenue for the country.
A new bill that outlines a framework for taxing crypto transactions—along with other tax measures—is under review by Nigerian lawmakers. The National Assembly, which reconvened for its 2025 session on January 14, is expected to pass the bill this quarter.
Nigeria’s Securities and Exchange Commission (SEC) recognizes that crypto trading could bring in substantial tax revenue but has not disclosed expected figures. Alongside taxation, the SEC plans to expand crypto exchange licenses, allowing more residents to trade on regulated centralized exchanges. This move is expected to improve oversight and boost investor confidence.
The country has been tightening regulations around unlicensed crypto exchanges. In August 2024, the SEC issued its first crypto exchange license, marking a shift toward clearer oversight. By September 2024, regulators had cracked down on unregistered exchanges, with only two being officially recognized at that time.
Regulators are also focusing on crypto advertising. In December 2024, the SEC updated its rules to prevent misleading promotions by social media influencers. Under the new guidelines, virtual asset service providers must get approval before working with third-party promoters to advertise crypto products.
Despite past restrictions, Nigeria’s young, tech-savvy population has embraced crypto as a way to protect their wealth from inflation and the weakening naira. Since taking office in 2023, President Bola Tinubu has pushed for fiscal reforms to boost government revenue and reduce the deficit.
Nigeria’s parliament recently approved a record 54.99 trillion naira ($36.4 billion) budget for 2025, highlighting the government’s need for new revenue sources.
Nigeria initially took a strict stance on crypto, banning financial institutions from working with crypto firms due to security concerns. However, the government reversed the ban in December 2023, signaling a shift toward regulation rather than outright prohibition.
Now, Nigeria is looking to grow its crypto market while ensuring proper oversight. The introduction of crypto taxation is a key step in balancing innovation with financial security, positioning the country as a leader in Africa’s digital asset space.
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