Nigeria is preparing to tax cryptocurrency transactions as part of broader efforts to boost government revenue, according to the country’s Securities and Exchange Commission.
A bill outlining the tax framework is under review and is expected to pass this quarter, according to Bloomberg.
The SEC plans to bring eligible crypto transactions on regulated exchanges into the formal tax system. The regulator acknowledged the “substantial amount of tax revenue that will accrue from cryptocurrency transactions” without providing specific figures.
The move comes as Nigeria grapples with high inflation and a weakened naira, which has led many residents to turn to cryptocurrencies as a hedge. Since taking office in 2023, President Bola Tinubu has implemented fiscal reforms to increase revenue and reduce the national deficit.
Nigeria to issue more licenses
Beyond taxation, the SEC intends to issue more licenses for centralized crypto exchanges. The regulator believes these exchanges will offer better monitoring capabilities and investor protections compared to decentralized alternatives.
The SEC expects that centralized exchanges will gradually gain popularity due to the enhanced protections and assurances they offer to investors.
This development follows growing crypto adoption in Nigeria and international scrutiny over the country’s handling of crypto-related matters. Recently, a detained Binance executive was released, and U.S. lawmakers criticized Nigeria for its approach to regulating the sector.
Nigeria’s 2025 budget includes a spending plan of 54.99 trillion naira ($36.4 billion), according to Bloomberg, with crypto taxes seen as a potential source of additional revenue to help meet these targets.
