Nigeria has one of the largest crypto adoption rates globally. In 2023, the government formally brought crypto into its tax net, applying capital gains tax (CGT) at 10% on profits. Combined with strict FX rules and exchange restrictions, compliance can be messy.
Here’s how it works in 2025 👇
🔎 How Nigeria Classifies Crypto
- Crypto is recognised as a digital asset.
- Gains from disposal of digital assets are subject to Capital Gains Tax (CGT).
- Applies to individuals and companies.
💰 Capital Gains Tax (CGT)
- Rate: 10% of net gains on disposal of crypto.
- Disposals include:
- 💵 Selling for Naira or other fiat
- 🔄 Swapping one crypto for another
- 🛒 Using crypto to buy goods/services
- CGT is charged on the net gain after deducting allowable expenses (like transaction fees).
Example:
- Buy BTC at ₦5,000,000.
- Sell for ₦7,000,000.
- Gain = ₦2,000,000.
- CGT = ₦200,000 (10%).
🧾 Income Tax on Crypto
- If you trade crypto professionally or as a business, profits may also be subject to income tax under existing rules.
- Companies → 30% corporate tax (medium/large companies).
- Individuals → progressive rates up to 24%.
🎨 NFTs & DeFi
- NFTs → treated as digital assets; sales trigger 10% CGT.
- Staking/DeFi rewards → taxable as income when received.
- Later disposal → subject to CGT.
📉 Losses
- Losses from digital asset transactions can be offset only against digital asset gains (not against other income).
- Excess losses may be carried forward.
🕵️ FIRS Enforcement in 2025
- The Federal Inland Revenue Service (FIRS) enforces crypto tax.
- Exchanges and payment service providers can be required to share user data.
- Non-compliance risks:
- Interest and penalties on unpaid tax
- Seizure of assets for deliberate evasion
🛠️ Compliance Checklist
- Track every disposal (date, Naira value, fees).
- Separate trading income from capital gains.
- File CGT returns and pay tax promptly.
- Be mindful of FX restrictions — offshore wallets are still in scope.
✅ Key Takeaways (Nigeria)
- 10% CGT on crypto gains since 2023.
- Trading as a business = subject to income/corporate tax.
- NFTs, staking, and DeFi all taxable.
- Losses can offset only other digital asset gains.
- FIRS is tightening enforcement — expect more exchange reporting.