All You Need to Know About Crypto Tax in Nigeria
If you’ve been buying, selling, or receiving crypto in Nigeria, you’ve probably heard people talking about crypto tax in Nigeria. For many Nigerians, that phrase sounds stressful. Taxes usually come with plenty of confusion, long explanations, and rules that feel hard to follow. But crypto tax doesn’t need to be complicated. It’s simply the government’s way of managing a market that has grown too big to ignore.
In this guide, we’ll break everything down in a straightforward, easy-to-follow way. Just the essential things every crypto user must know, so you can stay safe, avoid penalties, and understand how your trading or income activities fit within Nigeria’s tax system.
Why Crypto Tax Exists in Nigeria
For years, the Nigerian crypto space has been booming without a formal tax structure. But as the market grew, the government realised that digital assets were now a real part of the economy.
To ensure proper regulation, the Nigerian government amended the Finance Act to recognise digital assets, which include crypto. Once something is officially recognised within a nation’s financial system, taxation becomes part of the picture.
So… How Did Crypto Tax Become Official?
Nigeria’s Finance Act introduced a specific category for digital assets. That means crypto transactions are no longer in a grey area. They are now formally recognised and regulated under the country’s tax laws, just like shares, bonds, and other investment assets.
The Finance Act 2023 is the law that brought crypto into Nigeria’s tax system. Under this Act, the government made three things very clear:
- Digital assets (including cryptocurrency) are now officially listed as Chargeable Assets.
- Any profit you make when you dispose of your crypto, whether by selling, swapping, or converting, is subject to Capital Gains Tax (CGT).
- The CGT rate in Nigeria is 10%, and it is applied only to the profit, not the full transaction amount.
So whenever you hear people say “crypto is taxable now,” this is precisely what they mean. If you trade and make a profit, 10% of the gain may be taxable.
How the Nigerian Government Plans to Tax Crypto Income
The Nigerian government plans to tax crypto income the same way it taxes income from regular work or business. Once crypto became recognised as a digital asset under the Finance Act, it automatically fell under the country’s existing tax framework.
Here’s what this means in practical terms: if you earn crypto from your job, business, freelancing, trading, or any service you provide, that income will be treated like normal earnings.
How to File Crypto Tax With FIRS in Nigeria
Filing crypto tax in Nigeria follows the same general process as filing tax for other types of income or investment gains. For most people, it starts with keeping accurate records. You should track how much you bought your crypto for, how much you sold it for, the dates of your transactions, and the Naira value you received. Without these details, it becomes difficult to calculate your actual profit or income.
Once you have your records, the next step is to determine whether you earned taxable income or realised taxable capital gains. Income earned through crypto payments falls under personal income tax, while profit from selling crypto falls under Capital Gains Tax. Both of these are handled by the Federal Inland Revenue Service (FIRS).
To file, you can use the FIRS online portal, visit a tax office, or work with a tax consultant. During filing season, you’ll declare your crypto income or gains just as you would declare your salary, business income, or investment profit.
Do Crypto Traders Pay Tax in Nigeria?
Yes, crypto traders do pay tax in Nigeria, but the type of tax depends on how they earn their money. If a trader buys and sells crypto for profit, the gain they make from each sale may fall under Capital Gains Tax. CGT is charged at 10% of the actual profit, not the full amount of the trade. So, even if a trader cashes out millions, only the profit portion is taxable.
Traders who earn crypto more frequently, such as full-time traders, scalpers, or people whose primary income comes from crypto activities, may also be subject to income tax. In this case, the government views their trading as a business or professional activity. If trading is your primary source of income, it’s treated the same way a business owner pays tax on their earnings.
How Does Capital Gains Tax on Crypto Work?
To understand how crypto tax in Nigeria works, you first need to understand Capital Gains Tax. CGT is a tax you pay when you sell something for more than you bought it. It applies to assets like land and shares, and now to digital assets such as Bitcoin, USDT, and Solana.
But here’s the part most people misunderstand: the tax is not on everything you trade. It is only on the profit you made. The government is not interested in your full trading volume. They only care about the extra money you gained.
For example, let’s say you bought Bitcoin for ₦9 million and later sold it for ₦11 million. Your profit is ₦2 million, and CGT is charged on that ₦2 million, not the full ₦11 million. The CGT rate in Nigeria is 10% so you would pay ₦200,000 in tax on that profit.
On the other hand, if you bought Solana for ₦500,000 and sold it for ₦350,000, that is a loss. You didn’t gain anything, so you owe no capital gains tax. Losses do not attract tax.
What Counts as Taxable Crypto Activities?
Nigeria’s crypto tax system mainly focuses on situations where you actually make money. If there is no profit, there is usually no tax to worry about. You may need to pay tax when you sell crypto for more than you bought it, because that means you made a gain. On the other hand, some activities are not subject to tax.
Simply holding your crypto does not create tax because you haven’t made any money yet. Moving crypto between your own wallets is also not taxable since you’re not selling or gaining anything. If you lose money in a trade, there is no tax because there is no profit. And if someone gives you crypto as a gift and you haven’t sold it yet, that gift does not attract tax until you eventually dispose of it.
Is Crypto Income Different from Capital Gains?
Yes, the two are very different, and this is where most people get confused when talking about crypto tax in Nigeria. Capital Gains Tax applies when you make money by selling your crypto, while Income Tax applies when you make money by earning crypto.
So let’s say you buy Bitcoin, hold it for a while, and later sell it for more than you bought it. The extra money you made is a gain. That gain is what attracts the Capital Gains Tax.
But if someone pays you in USDT for a job, a design, a business service, or any work you do, that is income. It doesn’t matter that the payment came in crypto instead of Naira; it is still money you earned.
How to Calculate Your Crypto Taxes Easily
The biggest headache for most traders is calculating taxes. But once you understand the structure, it becomes simple.
To calculate CGT, follow this:
1. Identify the amount you bought the asset for (Cost)
2. Identify how much you sold it for (Value at Disposal)
3. Subtract the cost from the selling price
4. Apply 10% tax on the profit
Formula:
CGT = (Selling Price – Cost Price) × 10%
Here’s an example:
You bought USDT worth ₦2m.
Later, you converted it to ₦2.7m.
Profit = ₦700,000
CGT = ₦70,000
It all comes down to your profit margin, not your entire capital.
How Vent Makes Crypto Tax Easier
When you think about crypto tax in Nigeria, the biggest challenge is usually tracking and proving your transactions. That’s where Vent makes life easier.
Vent is designed with clear transaction logs that allow you to:
- See every cash-out
- Track every conversion
- Know the exact amount received in Naira
- Avoid the confusion of dealing with unknown buyers
P2P platforms can be messy for record-keeping, but Vent keeps everything neat and simple.
Vent also helps you with Tax Compliance because:
- You get automatic transaction records
- You don’t have to track exchange rates manually
- You avoid disputes common on P2P
- You can easily calculate gains from your Naira receipts
- Transparency helps if tax authorities ask for records
Vent doesn’t charge transaction fees, so your records reflect the real amount you received, making tax calculations more accurate.
Frequently Asked Questions About Crypto Tax in Nigeria
Is crypto taxable in Nigeria?
Yes. Crypto is now taxable in Nigeria. The government treats it as a digital asset, similar to shares or other investments. If you make money from selling or using crypto, that profit can be taxed.
Do I pay tax if I’m only holding crypto?
No. Just holding (HODLing) your crypto is not taxable. Tax only comes in when you sell, convert, or use your crypto and make a profit from it.
How much tax do I pay on my crypto?
For profits from selling crypto, Nigeria uses Capital Gains Tax (CGT), which is 10% of your profit, not the entire amount you sold. If you earn crypto as income (for example, from work), it may be subject to regular income tax rates instead.
Do I pay tax every time I sell crypto?
No. You only pay tax when you sell at a profit. If you sell at the same price you bought it, or at a loss, there is no gain and no Capital Gains Tax.
If I lose money, do I still pay tax?
No. If you sell your crypto for less than you bought it, you made a loss. Losses are not taxed because you didn’t gain anything.
Do freelancers earning in crypto pay tax?
Yes. If you are a freelancer or business owner and clients pay you in crypto, that is treated like normal income. When you convert that crypto to Naira, the value you receive can be taxed as income.
Are P2P trades taxed in Nigeria?
Yes. Profits from P2P trades are still taxable, even if the platform doesn’t automatically report them. The responsibility for keeping records and declaring profit is on you, not the exchange.
What steps should I take to pay crypto tax in Nigeria?
First, keep records of your trades: the amounts you bought and sold, and the dates. Next, calculate your profit for the year. Then, include those profits or income when filing your tax returns with FIRS, either through their portal, a tax office, or with the help of a tax adviser. Good records make it much easier to stay compliant.
Final Thoughts
Crypto has become a big part of everyday life in Nigeria. Whether you trade for profit, receive crypto income, or cash out USDT regularly, you need to understand how crypto taxes work in Nigeria.
The most brilliant move is to use platforms that help you stay organised. Vent gives you clean records, automatic transaction logs, and smooth cash-outs that make tax filing stress-free.
👉Download the Vent app to track your crypto conversions easily and stay compliant without stress.
