Nigeria is making crypto companies collect taxes for the government
The requirements could increase compliance costs and force companies to expand their finance and compliance teams. They could also require changes to internal systems for onboarding, settlement, custody, and reconciliation.
Nigeria's new guidelines for virtual asset service providers (VASPs) extend their reach into the country's tax collection network. These regulations require crypto exchanges, brokers, custodians, wallet operators, and peer-to-peer marketplace operators to collect various taxes and maintain extensive records. This includes withholding tax on qualifying virtual asset sales, stamp duty on Bitcoin or USDT transactions, charging VAT on exchange and service fees, and filing multiple tax returns.
Additionally, VASPs must pay up to 30% company income tax on their profits. The Nigerian government's push to diversify non-oil revenue collection has driven this regulatory push, as corporate income tax collections dropped significantly in Q1 2026. While these provisions may increase compliance costs for crypto businesses, they also provide a tax accounting advantage.
The NRS requires VASPs to account for gains on virtual assets in real terms, rather than just in naira terms, which could prevent over-taxation due to currency devaluation. Another key provision is that stamp duties are deducted from the acquired cryptocurrency rather than the cash paid, effectively lowering the acquisition cost.
These measures aim to ensure that crypto businesses contribute fairly to Nigeria's tax revenue while providing a framework that minimizes double taxation on currency devaluation.
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