Nigeria adopts tax framework for crypto exchanges and VASPs

Nigeria has introduced a comprehensive tax framework for cryptocurrency and other virtual assets, designating exchanges and peer-to-peer platforms as key collection agents. The new guidelines, published by the Nigeria Revenue Service (NRS) on August 3, 2026, outline specific withholding and reporting obligations for virtual asset service providers (VASPs), introducing new transaction costs and marking the country's most detailed effort yet to bring the fast-growing digital asset sector into the formal tax system.

The core of the framework positions exchanges and P2P marketplaces as tax withholding and reporting gatekeepers. These platforms are now required to deduct taxes at the point of transaction. A withholding tax of 1% applies to proceeds from taxable disposals of crypto assets and applicable non-fungible tokens. For other forms of virtual asset income, including proceeds from staking, mining, airdrops, and certain decentralized finance (DeFi) activities, a higher withholding rate of 10% applies. The guidelines exempt stablecoin sales from the 1% withholding tax on taxable disposals.

A key operational feature is the introduction of a 1.5% stamp duty on transfers between...