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Buying cryptocurrencies such as Bitcoin, USDT and other virtual assets in Nigeria will now attract additional costs following the introduction of a 1.5 per cent stamp duty under new tax guidelines issued by the Nigeria Revenue Service (NRS).
The new Guidelines on Taxation of Virtual Assets require registered Virtual Asset Service Providers (VASPs) and cryptocurrency exchanges to deduct the applicable stamp duty directly from the digital assets purchased before they are credited to a buyer’s wallet.
Rather than collecting the tax through customers’ bank accounts, the NRS has directed that the duty be withheld and remitted in the same cryptocurrency involved in the transaction.
According to the Service, “Income tax deducted at source and stamp duty shall be remitted to the Service in the originating token of the transaction.”
Crypto exchanges now responsible for tax collection
The guidelines represent Nigeria’s most comprehensive tax framework for virtual assets to date, significantly expanding the country’s regulatory framework for cryptocurrencies and blockchain-based assets.
In addition to introducing the 1.5 per cent stamp duty on qualifying virtual asset transactions, the framework effectively designates cryptocurrency exchanges and other licensed VASPs as tax collection agents.
Under the new regime, digital asset service providers are required to deduct applicable taxes before transferring cryptocurrencies to customers.
The guidelines also clarify the tax treatment of a wide range of blockchain-related activities, including cryptocurrency trading, staking, mining, token rewards and other virtual asset transactions.
According to the NRS, the framework is intended to provide certainty for taxpayers while strengthening regulatory compliance, improving tax administration, and ensuring that Nigeria’s expanding digital asset ecosystem contributes fairly to government revenue.
“These Guidelines are issued for the information and guidance of taxpayers, Virtual Asset Service Providers (VASPs), Peer-to-Peer (P2P) marketplace operators, tax consultants, financial institutions, and all persons engaged in Virtual Assets (VA) activities,” the NRS stated.
How the new stamp duty works
To demonstrate the implementation of the new levy, the NRS provided an illustration of a cryptocurrency purchase.
In its example, a customer purchasing 1 Bitcoin (BTC) valued at ₦1,000,000 would not receive the full amount of cryptocurrency purchased.
Instead, 1.5 per cent, equivalent to 0.015 BTC, would be deducted as stamp duty before the remaining 0.985 BTC is credited to the buyer’s wallet.
The seller would receive the full naira payment, while the Virtual Asset Service Provider would remit the withheld cryptocurrency directly to the NRS.
The tax authority further explained that if the buyer subsequently sells the 0.985 BTC when its value has appreciated, any resulting gains may also be subject to applicable income tax under existing Nigerian tax laws.
Additional tax obligations for crypto users
The new rules build on existing stamp duty obligations already applicable to electronic banking transactions.
Earlier this year, cryptocurrency exchanges including Quidax informed users that the ₦50 stamp duty introduced under the Nigeria Tax Act (NTA) 2025 would apply to qualifying naira withdrawals of ₦10,000 and above.
The latest guidelines establish an entirely separate 1.5 per cent stamp duty specifically for eligible virtual asset transactions facilitated through licensed Virtual Asset Service Providers or recognised intermediaries.
The NRS also clarified that where a virtual asset is used to complete a transaction that independently attracts stamp duty under the Nigeria Tax Act, the applicable duty on the underlying transaction remains payable.
Beyond the stamp duty, cryptocurrency users may also be required to pay Value Added Tax (VAT) on exchange service fees, while profits realised from trading or disposing of digital assets remain subject to income tax under existing tax legislation.
New framework strengthens oversight of virtual assets
The introduction of the guidelines marks another significant step in Nigeria’s efforts to strengthen oversight of digital assets through enhanced regulatory compliance, regulatory reporting, and effective compliance management.
The framework also reinforces the responsibilities of Virtual Asset Service Providers to maintain proper records, comply with applicable anti-money laundering (AML) and Know Your Customer (KYC) requirements, and support government efforts to improve transparency within the digital asset ecosystem.
As Nigeria continues to expand its regulatory framework for virtual assets, the new rules are expected to increase compliance obligations for cryptocurrency exchanges, investors and digital asset users while creating greater certainty around the taxation of blockchain-based transactions.
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