COMPLIANCE ALERT: NRS ISSUES GUIDELINES ON THE TAX TREATMENT OF VIRTUAL ASSET TRANSACTIONS

Introduction  

On the 18^th of July 2026, the State House of Assembly, Abuja FCT, issued a press release on the president’s executive order made on the 17^th of July 2026. In compliance, the Nigerian Revenue Service (NRS) issued guidelines regulating the taxation of virtual assets in Nigeria. The executive order was issued to coordinate virtual asset transactions by harmonising the regulation of virtual assets operating within the Nigerian economy, thereby protecting citizens from fraud and safeguarding the integrity of the Nigerian financial system. The executive order tends to combat money laundering & terrorism financing, improve revenue collection, improve inter-agency coordination, and protect citizens from unregistered operators and fraud.

Among other things, the executive order establishes a virtual asset council, including the Central Bank of Nigeria (CBN), the Nigerian Revenue Service (NRS), Securities and Exchange Commission (SEC), Nigerian Financial Intelligence Unit (NFIU), and the Office of the National Security Adviser (ONSA). The order also sets the foundation for the NRS to issue a tax policy for virtual assets.  

The NRS guidelines operationalise Nigeria’s tax laws as they apply to virtual assets, providing greater certainty for taxpayers and service providers, strengthening voluntary compliance, and ensuring that the sector contributes fairly to national revenue as it grows. It complements the coordination framework by aligning revenue administration with the work of the other participating authorities.  

This newsletter provides an overview of virtual asset transactions and highlights the relevant provisions of the NRS taxation guidelines 

Brief Overview  

The digital and financial ecosystem is complex, wide, and often misconstrued. Thus, it sometimes poses regulatory difficulties in effective monitoring and administration of the financial system. Over the years, Nigeria has faced several challenges in accepting virtual assets in the first instance as well as adopting and regulating them within the financial system. Therefore, the administration of virtual assets is closely monitored and subject to significant regulatory review and innovation in the country’s financial ecosystem.  

According to the SEC rules on Virtual Assets Service Providers (VASPs), Virtual assets are defined as a digital representation of value that can be transferred, digitally traded, and can be used for payment or investment purposes. It does not include digital representations of fiat currencies, securities, and other financial assets.  

The NRS guidelines on taxation apply to taxation on virtual assets service providers (VASPs), peer-to-peer (P2P) marketplace operators, tax consultants/tax practitioners, financial institutions, and persons engaged in virtual assets. The guidelines are framed in accordance with Section 4 of the Nigeria Revenue Service Establishment Act, 2025, Ninth Schedule to the Nigeria Tax Act, 2025 (NTA), Section 79, and the Fifth Schedule to the Nigeria Tax Administration Act, 2025 (NTAA) 

Relevant Provisions of Taxation Guidelines 

1. Virtual assets categories:  The guidelines provide for several categories of virtual assets as well as the applicable categorised tax treatment. The categories include:

• Category 1 – Cryptocurrencies and exchange tokens such as Bitcoin, Ether, Solana, BNB, etc, are taxed on Income tax and Stamp duty.
• Category 2 – Stablecoins and payment tokens such as USDT, USDC, BUSD, DAI, PYUSD, etc are taxed on Income tax and Stamp duty.
• Category 3 – Security and Investment tokens such as tokenised equity, revenue sharing tokens, asset-backed tokens, tokenised bonds, and other tokenised assets are taxed on income tax and stamp duty. However, tokenised Nigerian stocks and shares are exempt from taxation.
• Category 4 – Utility and governance tokens such as gaming tokens, access tokens, DAO governance votes, staking derivative tokens, receipt tokens, etc are taxed on income tax on the gains on disposal.
• Category 5 – Non-Fungible Tokens (NFTs) such as digital art, music NFTs, collectibles, property NFTs, etc are taxed depending on economic substance and creator/investor/trader status.
• Category 6 – Sovereign digital currency such as eNaira; foreign CBDCs held by Nigerian residents require no virtual asset tax obligation.

2. Taxation rates and collection mechanism: The guidelines provide for different applicable rates for the virtual asset categories including 30% tax rates for companies on income tax on gains on disposal, 10% income tax rates on income receipts such as mining, staking, DeFi yield and airdrops, 5% or 10% for income tax rate on consultancy/professional fees, 1.5% of stamp duty rates on token/fiat transactions, 7.5% VAT on the services of VASPs and 30% of income tax rate on the profits of VASP.

3. Non-taxable events: The guidelines apply to taxable disposal or taxable supply of virtual assets either by sale, transfer or other disposals. Thus, the virtual assets may not be taxed on these events, including:

• Holding of virtual assets, including unrealised appreciation in value

• Transfer between wallets owned by the same individual, provided there is no change of individual ownership.

• Minting or creation of Non-Fungible Tokens (NFTs)

• Tokenisation of real-world assets

• Collateralised loans secured by virtual assets

• Staking lock-up

• Mere transfer of Virtual assets

4. Taxpayer obligations: Any person involved in or engaged in virtual asset activities is obligated to register before operating and transacting with virtual assets for tax purposes. They are also required to obtain a valid tax ID as a precondition for account activation in accordance with section 8 of the Nigerian Tax Administration Act (NTAA). This includes VASPs and P2P escrow operators

5. Penalties: The guidelines stipulate the penalties for default relating to compliance with the guidelines. The defaults include failure to register before commencing transactions with virtual assets, failure to file returns or filing of incomplete returns, failure to attend demands, requests or notices, and VASP or P2P marketplace operator noncompliance, among others. A defaulter is liable to pay up to 10% of the amount due + CBN MPR interest for non-payment of tax for Naira transactions and the sum of N10,000,000 (first month) and N1,000,000 for subsequent months of default for the noncompliance of a VASP or a P2P marketplace operator.

Conclusion  

The presidential executive order and the guidelines issued by NRS demonstrate Nigeria’s effort to adopt and regulate the use and transaction of virtual assets within the Nigerian digital economy. It also reflects Nigeria’s efforts to align with developing international standards employed in various jurisdictions all over the world, including Ghana. 

Stakeholders and affected taxpayers are advised to review and familiarise themselves with the provisions of the guidelines and ensure compliance with the provisions to avoid defaults and penalties attached.  

This newsletter is provided for general information purposes only and does not constitute legal, regulatory, or professional advice. While reasonable care has been taken in preparing this publication, readers are advised not to rely on its contents as a substitute for specific legal advice. Institutions and individuals are encouraged to consult their legal, compliance, or other professional advisers to obtain advice tailored to their particular circumstances before taking further steps.