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News

Nigerian Crypto Tax Is Under Development Of New Regulations

2 mins mins
Nigerian Crypto Tax Is Under Development Of New Regulations

Key Points:

  • Nigerian crypto tax is undergoing regulatory revisions, with a bill outlining the framework expected to be adopted this quarter.
  • The Nigerian Securities and Exchange Commission (SEC) is working to ensure all eligible crypto transactions on regulated exchanges are included in the formal tax system.

According to Bloomberg, Nigerian crypto tax policy is being aligned with activities such as cryptocurrency trading and digital transactions. The move is aimed at boosting the country’s revenue generation efforts.

Read more: Kelsier Ventures Is Preparing to Expand for “Second LIBRA Project” in Nigeria  

Nigerian Crypto Taxes Set to Change With SEC Regulations

The Nigerian Securities and Exchange Commission (SEC) is working on new regulations that will ensure all eligible cryptocurrency transactions conducted on regulated exchanges are captured in the formal tax system.

The SEC has confirmed that a bill outlining the Nigerian crypto taxes and additional levies is currently before lawmakers and is expected to be passed this quarter. However, the SEC did not specify how much revenue it anticipates from these measures.

Lifting of Crypto Ban Signals Regulatory Shift in Nigeria

The regulatory shift comes as Nigeria seeks to harness the growing role of cryptocurrencies in its economy. Despite previous restrictions, Nigeria has consistently ranked among the top countries for cryptocurrency adoption, with a large portion of the population engaged in digital asset trading.

The operations of crypto companies in the country are also being restricted. The Nigerian government accused Binance of operating in the African country without a license, allowing criminals to launder illicit funds on its website, and undermining its fiat currency.

The Nigerian government had initially imposed a ban on cryptocurrency transactions in 2021, citing concerns over illicit activities and the potential risks to the financial system posed by unregulated digital currencies.

The ban was lifted in December 2023, marking a significant policy shift towards regulation. In support of the regulatory transition, the SEC granted Approval-in-Principle to two crypto exchanges, Quidax and Busha, in August 2024.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Avatar of John Kojo Kumi

John Kojo Kumi

18 February 2025, 16:40:07 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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