Nigeria’s new crypto tax: stamp duty, withholding, income tax, VAT
Nigeria’s Revenue Service has introduced a comprehensive virtual asset tax framework that taxes crypto at multiple stages: a 1.5% stamp duty on acquisition, a 1% withholding tax on disposal, income tax on realised gains, and VAT on exchange service fees. Each tax triggers at a different point in the transaction lifecycle, so the government’s take rises as asset prices appreciate. For example, buying ₦1 million of Bitcoin incurs an immediate ₦15,000 stamp duty (1.5%). If Bitcoin later doubles and the holder sells, the sale attracts another 1.5% stamp duty plus a 1% withholding tax, bringing total taxes on the round‑trip to about ₦64,250 (≈4.7% of the original value), not including exchange fees, network charges or VAT. Income tax applies separately: the first ₦800,000 of annual gains is exempt, with the remainder taxed at 15‑25% depending on total income. The framework also covers stablecoins, which now attract the same stamp duty and VAT on fees. Projected stamp‑duty revenue is ₦456.07 billion in 2026, rising to ₦579.82 billion in 2027 and ₦752.45 billion by 2028, reflecting the government’s reliance on crypto as a new tax source. Will you adjust your trading frequency, hold assets longer, or factor these layered taxes into your crypto investment strategy to minimize the bite?