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

The Digital Assets Coalition, representing digital-asset participants in Nigeria, has raised concerns regarding new tax guidelines that threaten the country's $92 billion cryptocurrency market, the largest in Sub-Saharan Africa. At a press conference held at L’eola Hotel in Ikeja, Lagos, on Thursday, the Coalition presented a paper titled “Tax the Profit, Not the Movement of Money.” They expressed support for taxing actual profits and implementing measures like platform registration and customer verification, aligning with practices in the UK, South Africa, and Brazil.

However, they opposed a 1.5% stamp duty on conversions between naira and digital assets and a 1% withholding tax on sales, which apply regardless of profit or loss. Obinna Iwuno, the Coalition's spokesperson, emphasized that these charges disproportionately burden young Nigerians who frequently transact small amounts.

He noted that similar tax measures in other countries led to significant declines in trading volumes and urged against taxing the very individuals contributing to the market's growth.