If you’re a crypto enthusiast in Nigeria, you would know that the government has had a rocky relationship with crypto.
From restricting banks from engaging in crypto activity to reversing the ban and even launching a crypto pilot program, the Nigerian government has done its fair share to regulate its crypto market. Now, a new tax bill marks a new chapter in this journey.
But, what does this tax regime mean for crypto holders and exchanges? Let’s dive into all you need to know in this post.
NOTE: The information in this post is for educational purposes only. So, for more clarity on issues such as tax avoidance, please consult a licensed tax professional.
New Crypto Tax Reform In Nigeria: The Details
Over the past two weeks, Nigerian Crypto Twitter has been buzzing with details of a new tax reform bill.
According to reports, the Nigerian government is set to establish a new tax system that will take effect from January 1st, 2026. The system is quite complex, but here’s the simple breakdown:
Individual crypto traders or investors will now be subject to an income tax on their earnings, including gains from cryptocurrency sales. This tax will only apply to those who generate OVER ₦800,000 in personal income for the entire year – including crypto profits.
Let’s give you an example to clear things up:
- Imagine you buy ₦1 million worth of Bitcoin (BTC) in January 2026 and sell your coins for ₦2 million in June.
- On paper, you would have made a profit of ₦1 million on your coins
- Because this is more than ₦800,000, you will need to pay a tax on your profits.
- On the other hand, someone who buys BTC worth ₦200,000 and sells for ₦400,000 won’t need to pay any tax because their profit is below the ₦800,000 threshold
Additional Tax Information To Note
While the tax system gives a little breathing space to individuals and businesses dealing in crypto, it is important to note that income tax isn’t the only tax to keep an eye on.
Crypto transactions are already subject to things like Value Added Tax (VAT) and electronic transfer levies, and these will remain. So, besides the income tax, these levies can also be charged when you sell crypto and get Naira in return.
Also, we should point out that the taxes will only apply to your profits on crypto. So, the government won’t tax the value of the crypto that you already hold.