NRS mandates TIN for crypto traders, imposes stamp duties on all exchange transactions
Nigeria Revenue Service (NRS) has issued new guidelines requiring all centralized crypto exchanges and P2P platforms to collect users' Tax Identification Numbers (TIN) during registration and automatically deduct stamp duties, VAT, and withholding taxes on every virtual asset transaction. Self-transfers between personal wallets remain tax-exempt, but trading, staking rewards, mining income, and airdrops are now taxable events. Exchanges must remit collected taxes within legal periods or face penalties: VASPs pay ₦10 million initial fine then ₦1 million monthly, while individuals pay ₦50,000 then ₦25,000 monthly for non-compliance. Traders must now track exchanger fees, network costs, and original purchase prices to calculate net gains—failure to do so results in taxation on gross revenue instead of actual profit. The guidelines also threaten SEC license suspension for defaulting exchanges and note that formalizing crypto via taxation may resolve long-standing conflicts with the CBN. With pseudonymity effectively ended on regulated platforms, will you maintain proper cost-basis records for your trades, accept the micro-fees on centralized exchanges, or migrate to DEXs and non-custodial P2P platforms to minimize transaction costs?