Quick Answer: Yes, Crypto Is Taxable in Nigeria
Cryptocurrency profits are taxable in Nigeria. The Federal Inland Revenue Service (FIRS) treats crypto gains as taxable events. Capital gains from selling crypto at a profit are subject to 10% Capital Gains Tax (CGT). Income received in cryptocurrency is subject to Personal Income Tax (PIT) at standard progressive rates. Keeping accurate records of all transactions is essential for compliance, and platforms like Monica make this significantly easier with downloadable transaction histories.
Cryptocurrency adoption in Nigeria continues to accelerate. The country consistently ranks among the top five nations globally for crypto usage, with millions of Nigerians holding, trading, and receiving digital assets. Yet despite this massive adoption, the topic of cryptocurrency taxation remains poorly understood by the vast majority of Nigerian crypto users.
Many Nigerian traders operate under the assumption that crypto gains are not taxable, or that because enforcement has been limited, the obligation does not exist. Both assumptions are incorrect. The legal obligation to pay tax on cryptocurrency gains has existed for years, and as the regulatory framework matures — particularly through the SEC Digital Assets Framework — the FIRS is gaining access to increasingly better data about crypto transactions.
This guide provides a comprehensive, practical overview of everything you need to know about crypto tax in Nigeria in 2026. Whether you are a casual trader, a frequent seller, a freelancer receiving crypto payments, or someone who simply holds crypto as an investment, this article will help you understand your obligations and how to meet them.
Disclaimer
This article provides general educational information about cryptocurrency taxation in Nigeria. It is not professional tax advice. For guidance specific to your financial situation, consult a qualified Nigerian tax professional or contact the Federal Inland Revenue Service (FIRS) directly.
Understanding Nigeria's Tax Framework for Cryptocurrency
Key Principle
Nigeria does not have a standalone "crypto tax law." Instead, existing tax legislation — particularly the Capital Gains Tax Act, the Personal Income Tax Act (PITA), and the Companies Income Tax Act (CITA) — applies to cryptocurrency transactions in the same way it applies to other assets and income sources.
Nigeria's approach to taxing cryptocurrency is based on applying existing tax laws to digital asset transactions. The FIRS has indicated through various communications and guidelines that cryptocurrency is treated as a taxable asset. This means the standard rules that apply to gains from selling property, shares, or other assets also apply to crypto.
Capital Gains Tax (CGT) on Crypto
The Capital Gains Tax Act imposes a 10% tax on gains arising from the disposal of assets. When you sell cryptocurrency for more than you paid for it, the profit constitutes a capital gain and is subject to CGT. This applies to all forms of disposal, including selling crypto for Naira, swapping one crypto for another, and using crypto to purchase goods or services.
| Transaction Type | Taxable? | Tax Type | Rate |
|---|---|---|---|
| Selling BTC/USDT/ETH for Naira at a profit | Yes | Capital Gains Tax | 10% |
| Swapping Bitcoin for USDT | Yes | Capital Gains Tax | 10% |
| Receiving crypto as payment for work | Yes | Personal Income Tax | 7-24% |
| Holding crypto without selling | No | N/A | N/A |
| Transferring crypto between your own wallets | No | N/A | N/A |
| Receiving crypto as a gift | No (until sold) | CGT on disposal | 10% |
| Selling crypto at a loss | No gain, no tax | N/A | N/A |
How to Calculate Capital Gains Tax on Crypto
Calculating CGT on cryptocurrency is straightforward in principle. The formula is:
CGT Formula
Taxable Gain = Selling Price (in Naira) - Cost Basis (in Naira)
Tax Owed = Taxable Gain x 10%
Your cost basis includes the Naira value of the crypto when you acquired it, plus any transaction fees you paid to acquire it. Your selling price is the total Naira value you received when you sold or disposed of the crypto, minus any selling fees.
Example Calculation
Suppose you bought 0.01 BTC on January 15, 2026, when the Bitcoin price was equivalent to ₦150,000,000 per BTC. Your cost basis is ₦1,500,000 (0.01 x ₦150,000,000). You also paid ₦5,000 in network fees, making your total cost basis ₦1,505,000.
Three months later, you sell the 0.01 BTC on Monica when the price is ₦180,000,000 per BTC. You receive ₦1,800,000. Your capital gain is ₦1,800,000 - ₦1,505,000 = ₦295,000. Your CGT liability would be ₦295,000 x 10% = ₦29,500.
Personal Income Tax on Crypto
If you receive cryptocurrency as payment for services — whether from freelancing on platforms like Upwork, remote work for an international employer, or consulting — the Naira value of the crypto at the time of receipt is treated as taxable income under the Personal Income Tax Act (PITA).
Nigeria's personal income tax uses a progressive rate structure:
| Annual Income Band | Tax Rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 | 24% |
For example, if you are a freelance developer who receives 500 USDT for a project when USDT is trading at ₦1,650, the taxable income from that payment is ₦825,000. This is added to your total annual income and taxed accordingly.
Companies Income Tax
If you operate a registered business that earns income through cryptocurrency — whether a crypto trading business, an agency that accepts crypto payments, or any other business — your crypto-related profits are subject to Companies Income Tax (CIT) at the standard rates: 0% for small companies (turnover below ₦25 million), 20% for medium companies (₦25-100 million), and 30% for large companies (above ₦100 million).
FIRS Requirements and Filing Obligations
The Federal Inland Revenue Service expects crypto-related income to be reported through the standard tax filing process. Here is what you need to understand about your filing obligations.
Who Must File
If you have realized capital gains from selling cryptocurrency, received cryptocurrency as income, or earned crypto-related business income during the tax year, you are required to include these in your annual tax return. The filing deadline for personal income tax is March 31 of the following year, while companies must file within 6 months of their accounting year-end.
Tax Identification Number (TIN)
You need a Tax Identification Number to file taxes in Nigeria. If you do not already have one, you can obtain a TIN through the FIRS Joint Tax Board (JTB) portal. Every Nigerian earning taxable income — including from crypto — should have a TIN.
Self-Assessment
For individuals, crypto tax is typically handled through self-assessment. You calculate your gains, determine the tax owed, file your return, and make the payment. The FIRS provides online filing through the TaxPro Max platform.
Record-Keeping: The Foundation of Crypto Tax Compliance
Critical Point
Accurate record-keeping is the single most important thing you can do for crypto tax compliance. Without proper records, you cannot accurately calculate your gains, and you cannot substantiate your figures if the FIRS requests verification. Start keeping records now, even if you have not been doing so previously.
What Records to Keep
For every cryptocurrency transaction, you should maintain the following records:
- Date of acquisition: When you received or purchased the crypto.
- Acquisition method: Whether you bought it, received it as payment, mined it, or received it as a gift.
- Cost basis: The Naira value at the time of acquisition, including any fees.
- Date of disposal: When you sold, swapped, or otherwise disposed of the crypto.
- Proceeds: The Naira value received (or fair market value at the time of disposal).
- Transaction fees: Network fees, exchange fees, and any other costs associated with the transaction.
- Wallet addresses: The sending and receiving wallet addresses for each transaction.
- Exchange or platform used: Which platform facilitated the transaction.
- Transaction IDs: Blockchain transaction hashes and exchange confirmation IDs.
- Screenshots or receipts: Visual proof of transactions, especially rates and amounts.
Tools for Record-Keeping
Several approaches can help you maintain organized records:
- Exchange transaction histories: Platforms like Monica provide downloadable records of every transaction, including the date, crypto amount, Naira received, and exchange rate. This is the easiest source of tax data for your selling activity.
- Spreadsheet tracking: Maintain a dedicated spreadsheet with columns for each data point listed above. Update it after every transaction — do not rely on memory.
- Blockchain explorers: Sites like Blockchain.com (for Bitcoin), Etherscan (for Ethereum), and Tronscan (for TRON/USDT-TRC20) provide permanent, verifiable records of on-chain transactions.
- Portfolio tracking apps: Applications like CoinTracker or Koinly can import transactions from multiple exchanges and wallets to generate tax reports. While these tools are designed primarily for US and UK tax systems, they can provide useful transaction summaries for Nigerian filers.
How Long to Keep Records
The FIRS can audit tax returns for up to six years after the filing date. Therefore, you should keep all crypto transaction records for a minimum of six years. Given that digital storage is essentially free, we recommend keeping records indefinitely.
How Monica Makes Crypto Tax Reporting Easier
One of the underappreciated advantages of using Monica for your crypto-to-Naira conversions is the simplification it brings to tax reporting. Here is why.
Clean, Transparent Transaction Records
Every transaction on Monica is recorded with full details: the cryptocurrency sold, the exact amount, the Naira equivalent received, the exchange rate at the time, and the date and time of the transaction. This gives you a complete audit trail for every conversion.
No P2P Complexity
P2P trading creates a tax nightmare. When you sell Bitcoin through P2P, you might deal with multiple buyers at different rates, receive split payments, or negotiate custom prices. Tracking all of this for tax purposes is extremely difficult. Monica's automatic conversion model eliminates this — you send crypto, you receive Naira at a clear rate. One transaction, one record. If you want to understand why this matters beyond taxes, read our guide on whether it is safe to sell Bitcoin in Nigeria.
Direct Bank Deposits
When Monica pays directly to your bank account, the deposit creates a matching bank record that corroborates your crypto transaction record. This two-source verification is exactly what you would want if you ever needed to substantiate your tax calculations. With free bank withdrawals, there are no hidden costs to account for either.
Consistent Pricing
Monica uses transparent, market-based exchange rates for all conversions. This consistency makes it easy to calculate your proceeds accurately. There is no haggling, no variable pricing, and no uncertainty about what rate you actually received — all factors that complicate tax calculations on P2P platforms.
Common Crypto Tax Scenarios for Nigerians
Let us walk through several common scenarios that Nigerian crypto users encounter and explain the tax implications of each.
Scenario 1: Freelancer Receiving USDT Payments
Adebayo is a graphic designer who receives 1,000 USDT from an international client. At the time of receipt, USDT is trading at ₦1,650. The ₦1,650,000 is taxable income under PITA. When Adebayo later converts the USDT to Naira on Monica and the rate is ₦1,670, there is also a ₦20,000 capital gain (the difference between his cost basis of ₦1,650,000 and the ₦1,670,000 he received). This gain is subject to 10% CGT.
Scenario 2: Bitcoin Trader
Chioma buys Bitcoin worth ₦500,000 and sells it two weeks later for ₦580,000 on Monica. Her capital gain is ₦80,000, and the CGT owed is ₦8,000 (10%). If she makes multiple trades throughout the year, she needs to calculate gains and losses for each trade. Net losses can offset gains within the same tax year.
Scenario 3: Long-Term Holder Selling Bitcoin
Emeka bought 0.1 BTC in 2022 for the equivalent of ₦2,000,000. In 2026, he sells on Monica and receives ₦15,000,000. His capital gain is ₦13,000,000, and the CGT owed is ₦1,300,000. This is a significant amount, but Emeka made ₦13 million in profit — paying ₦1.3 million in tax is a legal obligation on what remains an excellent return.
Scenario 4: Receiving Ethereum for Services
Fatima is a web developer who receives 1 ETH for building a website. At the time of receipt, 1 ETH equals ₦5,500,000. This amount is treated as income. When she later sells the ETH for Naira at a price of ₦5,800,000, there is an additional ₦300,000 capital gain subject to CGT.
Scenario 5: Swapping Crypto
Gideon swaps 1 BTC (worth ₦150,000,000 at the time) for 90,909 USDT. His original cost basis for the BTC was ₦120,000,000. The swap triggers a ₦30,000,000 capital gain, even though Gideon never received Naira. The disposal of BTC is a taxable event regardless of what he received in return.
Tax Planning Strategies for Crypto Traders
While you must pay all taxes legally owed, there are legitimate strategies to manage your tax liability effectively.
Harvest Losses
If you hold cryptocurrency positions that are currently at a loss, selling them before year-end can generate capital losses that offset your capital gains. For example, if you have ₦500,000 in gains from Bitcoin trading but also hold an altcoin with ₦200,000 in unrealized losses, selling the altcoin reduces your net taxable gains to ₦300,000.
Keep Meticulous Records from Day One
Poor record-keeping often leads to overpaying taxes because you cannot prove your cost basis. Without records showing what you originally paid, the FIRS could treat your entire selling price as a gain. Starting with good records from the beginning saves you money.
Use Platforms with Clear Records
Platforms like Monica that provide transparent, downloadable transaction histories make it far easier to accurately calculate your tax position. The cleaner your records, the more accurately you can determine your actual gains, which prevents overpayment.
Consult a Professional
If your crypto trading volume is significant — say, above ₦10 million annually — the cost of consulting a tax professional is well worth it. A qualified accountant can help you structure your activities efficiently, identify deductions you may be missing, and ensure full compliance.
What Happens If You Do Not Pay Crypto Tax
Take This Seriously
While enforcement of crypto-specific taxation is still developing in Nigeria, the legal obligation is real and enforceable. Non-compliance carries genuine risks that will only increase as the regulatory framework matures.
Failing to pay taxes on cryptocurrency gains can result in several consequences:
- Penalties and interest: The FIRS charges penalties for late filing and late payment, plus interest on unpaid tax amounts.
- Back taxes: If the FIRS determines that you have been underreporting income, they can assess back taxes for previous years.
- Prosecution: Under the FIRS Establishment Act, deliberate tax evasion can lead to criminal prosecution, fines, and imprisonment.
- Difficulty proving legitimate income: If you cannot demonstrate that you have paid taxes on your crypto income, explaining large deposits to your bank becomes problematic.
The landscape is changing rapidly. As SEC-compliant platforms like Monica are required to maintain detailed transaction records, and as the FIRS develops its data-sharing relationships with financial institutions and crypto platforms, the window for undetected non-compliance is narrowing. The smart move is to start complying now, when the cost of past non-compliance is minimal, rather than waiting until enforcement catches up.
The Future of Crypto Taxation in Nigeria
Several developments are likely to shape crypto taxation in Nigeria over the coming years:
- Dedicated crypto tax legislation: Nigeria is likely to introduce specific laws addressing cryptocurrency taxation, providing clearer guidelines than the current approach of applying existing tax laws.
- Automated reporting: SEC-compliant platforms may eventually be required to report user transaction data directly to the FIRS, similar to how banks report interest income.
- Improved FIRS capabilities: The FIRS is investing in technology to improve tax collection across all sectors, including digital assets. Blockchain analysis tools may be employed to identify unreported crypto income.
- International cooperation: Nigeria is part of global initiatives to combat tax evasion. Information-sharing agreements between countries could expose offshore crypto holdings.
- Possible rate adjustments: As the government better understands the scale of crypto-related income, tax rates or thresholds may be adjusted.
The direction is unmistakable: crypto taxation will become more formalized, more enforced, and more sophisticated. Early compliance positions you well for these changes.
Practical Steps to Get Started with Crypto Tax Compliance
Step 1: Get a Tax Identification Number (TIN)
If you do not have one, register at the FIRS JTB portal. This is the foundation of all tax compliance in Nigeria.
Step 2: Gather Your Transaction Records
Download transaction histories from every platform you use. For Monica users, this is straightforward — your complete history is available in your account. For P2P trades, gather whatever records you have.
Step 3: Calculate Your Gains and Losses
For each transaction, determine the cost basis and selling price. Calculate the gain or loss. Sum up your net gains for the tax year.
Step 4: File Your Tax Return
Include your crypto gains in your annual tax return through the FIRS TaxPro Max platform or with the help of a tax professional.
Step 5: Pay the Tax Owed
Make payment through the FIRS-approved channels. Keep the payment receipt as proof of compliance.
Step 6: Establish Ongoing Practices
Set up a system to track transactions as they happen. Use platforms like Monica that provide clean records. Review your tax position quarterly rather than scrambling at year-end.
Cryptocurrency taxation in Nigeria is a reality that every crypto user needs to accept and plan for. The good news is that compliance is not complicated — it simply requires awareness, record-keeping, and timely filing. By using platforms like Monica that provide transparent, documented transactions with full legal compliance, you are already making the tax process much simpler than it needs to be.