Nigeria Tightens Grip on Crypto With New Taxes, Fines, and License Crackdowns
Nigeria’s approach to cryptocurrency has been anything but consistent. From barring banks from working with crypto firms in 2021, lifting that restriction in late 2023, and then quickly licensing homegrown exchanges like Quidax and Busha in 2024, the country has shifted repeatedly between caution and reluctant acceptance.
Despite being blamed for fueling naira instability and enabling tax evasion, crypto remains wildly popular in Nigeria—so much so that it can no longer be ignored. Between July 2024 and June 2025, Nigerians moved an estimated $92.1 billion in digital assets, nearly double South Africa’s activity and placing the country among the world’s largest crypto markets. While Kenya and South Africa have already rolled out crypto-focused taxes, Nigeria is now taking its turn with stricter oversight.
According to a report by Chainalysis, Nigeria ranks among the top crypto markets worldwide, helping Sub-Saharan Africa account for 2.3% of global crypto activity. The pivot comes with the Nigeria Tax Administration Act (NTAA) 2025, signed into law in June and due to take effect in 2026. The legislation represents a sweeping reform of crypto taxation, putting Virtual Asset Service Providers (VASPs) directly in regulators’ crosshairs. Under the NTAA, any VASP that fails to comply faces an initial fine of ₦10 million ($6,693) in the first month, plus ₦1 million ($669) for each month of continued default. To tighten the grip further, the SEC now holds the power to suspend or revoke licenses, effectively shutting down platforms that fall short of requirements.
Read Also: Gossy Ukanwoke on Trust, Compliance and Regulation in the iGaming Sector
Beyond trading, it applies to mining, staking, airdrops, and even everyday transactions made in crypto. VASPs must register with tax authorities, file suspicious activity reports, and retain customer KYC records for at least seven years. As one industry insider noted, “We are now like banks that are over-regulated.”
For users, the ripple effect will likely come in the form of higher transaction fees, as operators shift compliance costs onto customers. For platforms, survival now hinges on their ability to adapt to this intensified scrutiny. For the government, however, it represents a chance to expand its tax revenue, currently under 10% of GDP, toward an ambitious 18% target by 2027.
