Nigeria Revenue Service issues virtual asset tax guidelines, imposes N10 million penalties

The Nigeria Revenue Service (NRS) has released comprehensive guidelines governing the taxation of virtual assets, including cryptocurrencies and peer‑to‑peer marketplaces. The rules, issued under the Nigeria Tax Administration Act 2025, require Virtual Asset Service Providers (VASPs) and P2P operators to register with the NRS, verify customers' Tax Identification Numbers, deduct and remit withholding tax, collect VAT and stamp duties, keep detailed transaction records and file regular tax returns.

Failure to comply attracts a penalty of N10 million for the first month of default and N1 million for each subsequent month until the breach is remedied. The guidelines aim to broaden Nigeria's tax base, improve compliance, curb fraud and support innovation in the digital economy. The measures follow President Bola Tinubu's recent executive order on virtual‑asset coordination, which seeks to align regulatory oversight across government agencies.