Nigeria wants to tax crypto. Traders say it could slow business.
The compliance burden will weigh heavily on crypto traders who rely on very small price differences to make money.
Nigerian regulators have introduced a new tax framework for cryptocurrency trading that has traders worried about the impact on their businesses. The 1.5% stamp duty charge on digital assets is expected to raise trading costs and potentially drive activity away from regulated exchanges into less visible channels. Joshua Adedeji, a Nigerian OTC bulk trader, says the tax cost is far higher than his existing operating costs, which could lead to a significant drop in trading volumes.
Kenny Olawale, a crypto trader in Lagos, expects similar consequences for his business, which processes $2,000 to $10,000 weekly across 50–150 customers. The combined effect of multiple taxes at different stages of a transaction is expected to apply broadly to Nigeria's virtual asset economy, posing a challenge for traders and crypto companies operating in the country.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
