Nigeria introduces new taxation guidelines for cryptocurrency P2P trading

The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines to regulate and tax virtual asset peer-to-peer (P2P) marketplaces. Grounded in the Nigeria Tax Act 2025, the regulations aim to bring informal cryptocurrency trading under formal oversight and improve consumer protection.

Key provisions include a 1% withholding tax on the proceeds of virtual asset disposals, which is credited as an advance tax payment. Additionally, a 1.5% stamp duty applies to token-to-fiat and fiat-to-token transfers. Staking rewards, mining income, and DeFi yields are taxed at 10%. Notably, stablecoins like USDT and USDC are exempt from the withholding tax.

In response, the Digital Assets Coalition has expressed opposition to the taxation structure. The industry group argues that taxing the movement of money rather than actual profits could drive users to offshore platforms. Spokesperson Obinna Iwuno stated, “That is not a tax on profit. It is a toll on participation,” warning that charges like the 1.5% stamp duty and the withholding tax on sales—even those resulting in losses—could negatively impact freelancers, students, and traders.