Nigeria’s tax authorities have brought cryptocurrency gains within the formal tax net, but the absence of sector-specific guidance on how such gains should be computed and reported is creating compliance uncertainty for investors and fintech operators.
The reforms extend capital gains tax and Value-Added Tax (VAT) obligations to digital transactions and virtual asset service providers operating in Nigeria, placing cryptocurrency activity within the compliance perimeter.
Unlike equities traded through licensed brokers, crypto transactions often occur across multiple exchanges and private wallets, many outside Nigeria’s reporting infrastructure. There is no central mechanism that automatically transmits individual trading data to tax authorities, leaving investors to calculate and self-report gains and losses.
