Nigeria is set to introduce taxes on cryptocurrency transactions as part of a broader strategy to increase government revenue, according to the country’s Securities and Exchange Commission (SEC). A bill outlining the taxation framework is currently under review and is expected to pass within the first quarter of the year, Bloomberg reports.
The SEC aims to integrate eligible crypto transactions on regulated exchanges into the formal tax system, citing the potential for “substantial” revenue generation, though exact figures were not disclosed. This move aligns with President Bola Tinubu’s fiscal reforms, which focus on reducing Nigeria’s budget deficit and stabilizing the country’s economy.
Nigeria has emerged as one of Africa’s largest cryptocurrency markets, fueled by high inflation and a depreciating naira. Many Nigerians have turned to digital assets as a hedge against economic instability. However, this surge in crypto adoption has also drawn increased regulatory scrutiny.
In addition to taxation, the SEC plans to issue more licenses for centralized crypto exchanges, arguing that they provide better monitoring and investor protection compared to decentralized alternatives. Regulators anticipate that centralized platforms will gain traction among Nigerian investors seeking security and compliance assurances.
The announcement follows recent developments in Nigeria’s cryptocurrency landscape, including the release of a detained Binance executive and criticism from U.S. lawmakers over the government’s handling of the crypto sector. These events signal growing international attention on Nigeria’s approach to digital asset regulation.
With a proposed 2025 budget of 54.99 trillion naira ($36.4 billion), the Nigerian government sees crypto taxation as a viable revenue source. As policymakers move forward with formalizing this framework, the impact on Nigeria’s crypto ecosystem remains to be seen.
