Nigeria Crypto Tax 2026 Guide: Calculate and Report Your Gains

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TL;DR,

• Nigeria’s new crypto tax takes effect January 2026, targeting $92.1 billion in annual transactions with a 15% tax on gains above ₦800,000.
• Individual traders must self-report crypto profits while VASPs face strict record-keeping requirements, periodic transaction reporting, and potential license revocation for non-compliance.
•  Fast-moving regulation (ban lifted, securities classification, CNGN push) aims to formalize crypto, but exchange restrictions and self-reporting frictions could curb adoption.

For some time now, we’ve known that Nigeria is spearheading a comprehensive regulatory and support system for its crypto ecosystem. Alongside its ISA 2025 Bill, pro-stablecoin narrative, a new crypto tax has joined as joined its multifaceted approach.

Whether you are a trader, an exchange, or a service provider, these new guidelines now demand a cut from your trades and transactions.

Nigeria’s New Crypto Tax: Your 2026 Guide to Calculating & Reporting Gains

According to Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Nigeria is set to bring crypto gains into its formal tax regime starting January 2026. For years, Nigeria has been at the top of Africa’s crypto ladder, achieving all new transaction highs of $92.1 billion as per Chainalysis. Unfortunately, the “protective” approach of its governments effectively forced its ecosystems to go “underground” with many warnings and policies doing little damage to its momentum.

This all changed in 2025, and from January 2026, profits from digital asset trading will be subject to personal income tax.

To avoid any loopholes, the new system is clearly structured and straightforward. The government has established various thresholds and tax rates to ensure both small-scale traders, high-volume investors and Virtual Asset providers are managed appropriately.

Here is a practical breakdown of how it will work, using a government-provided example:

• Scenario: An investor buys ₦2.93 million (approximately $2,000) worth of Bitcoin.
• Sale: The investor later sells the Bitcoin for ₦5.86 million (roughly $4,000).
• Profit Calculation: The total gain from this transaction is ₦2.93 million.
• Tax-Free Threshold: The first ₦800,000 of the profit is exempt from tax.
• Taxable Income: The remaining ₦2.13 million (₦2.93 million – ₦800,000) is subject to taxation.
• Tax Rate: This taxable portion is taxed at a rate of 15%.
• Final Tax Payable: The total tax owed would be ₦319,704 (approximately $218).

Knowing trading profits are often one-sided of the coin. If a seller makes a loss, under the new tax laws, you owe nothing.

“The new law that will take effect in January 2026 will tax you if you make gains on crypto and totally ignore you when you make losses. “It is not a crime to invest in crypto. If your net gain is small, below the threshold (₦800,000), your tax is 0%.” Taiwo Oyedele

How to Comply — or in Plain English, How to Pay Crypto Tax in Nigeria

The Federal Inland Revenue Service (FIRS) is the central regulator body for this new crypto tax system. Individual traders are mandated to declare their earnings. The framework doesn’t exempt VASPS(the exchanges, brokers, and digital‑asset platforms Nigerians use), mandating that they should maintain clear records and report any activities.

The entire system hinges on proactive self-declarations, a mandate that its latest law highlights.

“A taxable person engaged in virtual asset activities shall keep records and books as provided under section 31 of this Act and report virtual assets activities to the relevant tax authorities,”

For Vasp, the compliance expectations are more severe given the region’s history of non-compliance. According to the law, each registered platform must:

Provide periodic reports of customer transactions to the Service, including but not limited to, exchange, sale, or transfer of virtual assets:

The High Cost of Non-Compliance: What is the Penalty for Not Paying Crypto Tax?

Between July 2024 and July 2025, Nigeria recorded about $92.1 billion in cryptocurrency transactions. It’s a gold mine for resources required to promote economic growth and improve infrastructure, thus non-compliance follows severe punishments.

Any operator that failed to meet its reporting obligations faces a stiff penalty for not paying crypto tax. The consequences include:

• A fine of ₦10 million (approximately $6,693) for the first month of non-compliance.
• An additional fine of ₦1 million (roughly $669) for each subsequent month the failure continues.
• The potential for license suspension or outright revocation by the Securities and Exchange Commission (SEC).

These measures underscore the seriousness of the government’s intent to enforce the new tax regime and hold institutional players accountable for their role in the financial ecosystem.

VASPs are also mandated to report large or suspicious transactions to the tax authorities and the Nigeria Financial Intelligence Unit. Anti-money laundering has been a heated topic amongst Nigeria’s regulators. In 2025, alone $2 million was flagged under suspicious transactions by its EFCC, and it has had prior run-ins with “questionable” exchanges before.

RELATED: EFCC Secures Landmark Conviction Against Foreign Crypto Crime Syndicate Members

The Journey to Regulated Digital Assets: A Look at Nigeria’s Crypto Laws

For the most part, Nigeria crypto laws have been fast-paced since 2025. At the start of the year, the nation classified digital assets as securities. Mid-year, the government has cracked down on figuring out a comprehensive cryptocurrency for its regions while also advocating for its local stablecoin, CNGN.

However, to some, this approach is too fast-paced. The allure of the $92.1 billion transaction rate has pushed for the new crypto tax laws, but the region still has some relatively bad relations with some exchanges. Chimezie Chuta, founder and coordinator of Blockchain Nigeria User Group, illustrated, “You want to tax crypto traders, but you are still blocking the website of major exchanges, both foreign and local. How do you expect people to trade if Binance, Bybit, and Coinbase are still restricted? ”

RELATED: Binance Nigerian Operations Hit Major Roadblock With Executive Detention

A sound argument given that in February 2024, Nigeria placed several restrictions on global platforms like Binance, OctaFX, and Coinbase. While this only forced traders to go “underground,” it still slowed its pace significantly.

Seeking to license exchange is one thing, local platforms like KuCoin implemented a 7.55% tax on transactions as per the FIRS requirements. During the same period, exchanges such as Quidax and Busha received the SEC green light to operate; however, this only encompasses a minute portion of pros.

Plenty of enforcement often chases most operators away, but demand will only grow. Banks have started offering crypto and stablecoins options with most operators going for friendlier regions so will banks.

It’s a sizeable revenue, but implementing guardrails for growth comes first. Plus, the fiasco over self-reporting is another hurdle Nigeria might want to fix first.