Nigeria moves to tax crypto transactions: report

Nigeria is preparing to tax cryptocurrency transactions in broader efforts to increase government income, according to Securities and Exchange Commission of the country.

A bill describing the tax framework is being examined and should adopt this quarter, according to Bloomberg.

The SEC plans to introduce eligible cryptographic transactions on regulated exchanges in the formal tax system. The regulator has recognized the “substantial amount of tax revenue which will accumulate cryptocurrency transactions” without providing specific figures.

The decision comes as Nigeria Grapps with high inflation and a weakened Naira, which has led many residents to turn to cryptocurrencies as a blanket. Since his entry into office in 2023, President Bola Tinubu has implemented tax reforms to increase income and reduce the national deficit.

Nigeria to issue more licenses

Beyond taxation, the dry intends to issue No more licenses For centralized cryptography exchanges. The regulator estimates that these exchanges will offer better surveillance capacities and investor protections compared to decentralized alternatives.

The SEC expects centralized exchanges gradually gaining popularity due to the improved protections and insurance they offer to investors.

This development follows the growing adoption of cryptography in Nigeria and an international examination on the management of questions related to cryptography by the country. Recently, a Executive of Binance held was released and American legislators criticized Nigeria for its sector regulatory approach.

The Nigeria budget in 2025 includes an expense plan of 54.99 Billions of Nairas (36.4 billion dollars), according to Bloomberg, with cryptographic taxes considered as a potential source of additional income to help achieve these objectives.