Digital Assets Coalition warns NRS tax rules could shrink Nigeria's $92B virtual asset economy
The Digital Assets Coalition warned that Nigeria's virtual asset economy, currently valued at $92 billion and largest in Sub-Saharan Africa, faces reduced investment and slower expansion due to new Nigeria Revenue Service (NRS) tax guidelines. Speaking at a Lagos media parley yesterday, Coalition spokesperson Mr Obinna Iwuno stated the transaction-based tax structure taxes movement of money itself rather than profits, creating unintended consequences for a sector vital to young Nigerians' global payments, remittances and income generation.
The Coalition supports taxation but objects to specific provisions: a 1.5% stamp duty on every naira-digital asset conversion and a 1% withholding tax on the total value of every digital asset sale. Iwuno argued this taxes gross transactions regardless of profit or loss, burdening students receiving remittances abroad, freelancers converting already-taxed income, and traders in losing years. He warned this design could push users and businesses to offshore platforms, reducing transparency and ultimately shrinking government's long-term revenue opportunities from the sector.
The group urged policymakers to review the guidelines, adopt a profit-focused tax model that protects smaller users, and conduct wider industry consultation. Iwuno emphasized that sustainable taxation requires expanding participation, not shrinking it through transaction tolls that drive activity away from regulated channels. Will you reconsider how you use digital assets for remittances, freelance work or savings if these transaction taxes increase your costs, or would you seek alternative platforms despite reduced transparency and consumer protections?