Nigeria is about to flip the script on crypto. Starting in 2026, profits from crypto transactions will be taxed, and both users and businesses will feel the heat. I’ve gone through the details, and here’s my take on what this really means.
1. You’ll Need Government Approval to Operate
If you’re buying, selling, running an exchange, issuing tokens, or doing anything serious with crypto in Nigeria, the government now wants you on the books. You’ll need to register with the tax authority as a Virtual Asset Service Provider (VASP) and also get a license from the Securities and Exchange Commission (SEC).
For ordinary users, this means most platforms you’ll interact with will now be officially registered and licensed. On the bright side, that could bring more safety and accountability. On the flip side, it also means the days of anonymous, “wild west” crypto dealings in Nigeria are fading.
As a business, the message is blunt: you can’t legally operate without registration and SEC approval. Personally, I think this move will clean out shady operators, but it also raises the barrier to entry for smaller innovators who may struggle with the cost and bureaucracy.
2. Not Every Token Is Treated the Same
The SEC isn’t trying to regulate every token out there. Its focus will be on crypto assets that qualify as securities: basically, anything that looks like an investment. If people are pooling money, expecting profits, and those profits depend on someone else (like developers or promoters), then the SEC will treat it as a security.
That means some tokens, especially those promising returns, will fall under stricter rules. Honestly, I don’t see that as a bad thing because it could help reduce the number of rug pulls and shady schemes.
For businesses, it means exchanges and issuers will have to carefully analyze each token before offering it. In my view, this brings clarity but also creates more red tape that could slow down innovation.
3. The Tax Net Is Getting Wider
This is where it hits everyone. Nigeria has made it clear: selling, swapping, transferring, staking rewards, mining, airdrops, bounties, or getting paid in crypto are all taxable events. In other words, if you’re making money with crypto, the government wants a slice.
Users who trade or even receive crypto as payment will now be expected to pay taxes on it just like naira income. That seems fair in principle, but let’s be real—it will be tough for casual traders or freelancers to track every taxable event.
On the business side, exchanges will be forced to track and report user transactions. Compliance costs are bound to rise, but this also means less room for tax evasion and more structure in the industry.
4. Spending Crypto Is No Tax Loophole
Paying with Bitcoin or any other token won’t help you dodge taxes. If you buy something in crypto, it’s treated as though you spent naira. The value will be calculated at the market price at the time of purchase.
For users, this kills a bit of the appeal of using crypto casually for shopping. That new gadget you buy with Bitcoin? Still a taxable event.
For businesses, the rule is straightforward: value goods and services in naira terms, even if payment comes in crypto. This adds complexity, but it also keeps the system uniform.
My Take on All This
Nigeria’s new regime feels like a double-edged sword. On one hand, regulation brings clarity, protects users from outright scams, and legitimizes the crypto industry. On the other hand, it chips away at the freedom and flexibility that drew many of us to crypto in the first place.
The real test will be enforcement. Can Nigeria actually track, monitor, and fairly tax an industry that thrives on decentralization? If yes, this could mark the beginning of a more mature crypto economy in the country. If not, activity may simply shift underground or offshore.
Either way, 2026 looks set to be a turning point for crypto in Nigeria.
