Nigeria's New Tax Rules Threaten $92bn Crypto Market

The Digital Assets Coalition, representing digital-asset participants and operators in Nigeria, has formally objected to new tax guidelines that came into effect on 3 August 2026. The coalition's position paper, titled “Tax the Profit, Not the Movement of Money,” emphasizes support for taxation but criticizes the imposition of charges on gross money movement rather than actual profits.

Key concerns include a 1.5% stamp duty on conversions between naira and digital assets, a 1% withholding tax on sales regardless of profit or loss, and the requirement to remit taxes in tokens, which contradicts the Nigeria Tax Administration Act, 2025. Obinna Iwuno, spokesperson for the coalition, stated that these charges disproportionately affect young Nigerians engaged in small transactions, compounding their financial burden.

The coalition argues that the framework is detrimental to youth participation in the digital economy, drawing comparisons to other countries that have reversed similar tax policies.