Nigeria is amending its digital asset regulations to introduce taxation on cryptocurrency trading and digitized transactions, aiming to significantly boost government revenue, according to areport by Bloomberg. The Securities and Exchange Commission (SEC) is developing new rules to ensure that all eligible transactions on regulated exchanges are included in the formal tax net. A bill outlining the framework for taxing crypto transactions and introducing additional levies is currently before lawmakers and is expected to be adopted this quarter.
The SEC acknowledged the substantial tax revenue potential from cryptocurrency transactions, though it did not specify the expected amount. The move comes as Nigeria’s youthful, tech-savvy population increasingly adopts cryptocurrencies as a hedge against high inflation and the naira’s steep depreciation against the dollar since mid-2023.
President Bola Tinubu, who assumed office in 2023, has prioritized fiscal reforms to increase government revenue and reduce the budget deficit, including overhauling tax administration. Last week, lawmakers approved a 54.99 trillion naira ($36.4 billion) spending plan for 2025.
In addition to taxation, the SEC plans to expand crypto licensing, including issuing permits for formal centralized exchanges. These exchanges will allow residents to trade in a regulated environment where transactions can be monitored and taxed. The SEC anticipates a gradual shift toward centralized exchanges, citing greater investor protections and comfort.
