Nigeria is preparing to impose taxes on cryptocurrency transactions as part of its efforts to boost government revenue.

A legislative proposal currently under review aims to regulate the taxation of digital assets, ensuring that transactions conducted through licensed exchanges fall under the country’s tax system.

According to Bloomberg, lawmakers are expected to approve the bill within the first quarter of 2025. The National Assembly, which resumed its 2025 legislative session on January 14, is evaluating the proposal as part of broader economic reforms.

The Nigerian Securities and Exchange Commission (SEC) has also indicated plans to expand crypto exchange licensing. By increasing regulatory oversight, the SEC aims to track and tax transactions more efficiently while fostering investor confidence through a structured and transparent market.

As Nigeria seeks new revenue sources to address economic challenges, taxing cryptocurrency transactions could provide substantial financial benefits and integrate digital financial activities into the formal economy.

Nigeria’s Crypto Journey: From Crackdowns to Regulation and Adoption

Nigeria's relationship with cryptocurrency has evolved through widespread adoption, regulatory hurdles, and shifting policies.

In 2017, the Central Bank of Nigeria (CBN) instructed commercial banks to halt crypto-related transactions, citing concerns over financial stability and illicit activities. Despite these restrictions, Nigeria emerged as a major player in global cryptocurrency adoption, with nearly a third of its population engaging in digital asset transactions by 2020—ranking among the top three nations in transaction volume.

Cryptocurrencies provided Nigerians with an alternative financial system, particularly during times of economic uncertainty and currency depreciation. When the CBN devalued the Naira by 24% in 2020, many turned to digital assets as a safeguard against inflation and to bypass high transaction costs associated with traditional banking.

By 2021, regulatory pressures intensified as the CBN doubled down on its restrictions, banning financial institutions from processing crypto transactions. In response, Nigerians shifted to peer-to-peer trading, further cementing the country’s status as a leader in decentralized finance. Around the same time, the government introduced the eNaira, a state-backed digital currency aimed at providing a regulated alternative to crypto.

In 2023, Nigeria began recognizing the economic potential of the crypto sector. The Securities and Exchange Commission (SEC) rolled out the Digital Assets Rules, setting up a licensing framework for crypto service providers. This marked a shift toward formal regulation, aiming to integrate digital assets into the broader economy while improving oversight and investor protection.

However, regulatory enforcement remained a challenge. In 2024, the detention of Binance executives on allegations of money laundering and unlicensed operations highlighted ongoing tensions between fostering crypto innovation and enforcing financial regulations. These events underscored Nigeria’s struggle to balance control and growth in the rapidly expanding digital asset space.

By early 2025, Nigeria had pivoted toward a more structured approach, with plans to tax cryptocurrency transactions. This move signals a major policy shift—from outright restrictions to integrating digital assets into the formal economy. The government hopes this approach will generate revenue while ensuring financial stability in the evolving crypto landscape.