1What's taxable
Conversion of crypto to naira (or to another crypto) is a disposal. Income from foreign clients in crypto is taxable income at the time of receipt. Hold-and-not-sell isn't taxable.
2Records to keep
Date, coin, amount, naira value at conversion, transaction hash. Monica's history export covers all of this.
3Cost basis
For coin-to-coin trades, you need cost basis tracking. For pure freelance income → naira, the naira value at receipt is the basis.
4Filing
Standard FIRS filing channels. Crypto income is included on the relevant income/business tax return form.
Questions people ask
Is crypto income taxable in Nigeria?
Yes at standard income tax rates for most users.
What records does FIRS expect?
Transaction-level history with naira valuations.
Can Monica provide tax records?
Yes the app exports CSV and PDF transaction history.
This is legal advice?
No consult a Nigerian tax practitioner.
What is the tax rate on crypto in Nigeria?
The Finance Act 2023 set a 10% rate on gains from digital assets, and the tax reforms that take effect in 2026 change how those gains are assessed, so the rate you pay depends on your total income and the rules in force when you sell. Confirm the current figure with a tax adviser before you file.
Do I pay tax when I sell USDT for naira?
Possibly. Tax applies to the gain, which is the difference between what the USDT cost you and the naira you received. Because USDT tracks the dollar, the gain is often small, but the sale is still a disposal you should record with the date, the amount and the naira paid to your bank.
Does the tax authority know when you sell crypto in Nigeria?
It can. Your naira payout lands in a bank account held in your name, so the sale leaves a bank record that FIRS can request. Monica verifies every account with a NIN and a selfie and does not file returns for you, so declaring the sale is your responsibility.
Does Monica deduct tax when it pays naira to my bank?
No. Monica pays the full naira amount with a 0% conversion fee and a 0% bank withdrawal fee, and it does not withhold any tax at payout. You declare the gain yourself in your annual return. Download your transaction history in the app and share it with a tax adviser if you are unsure.
Is crypto legal in Nigeria?
Yes. Holding and selling crypto is legal in Nigeria, and the fact that gains are taxed confirms that the law treats crypto as a normal asset. You can send BTC, ETH, USDT, USDC, SOL, BNB or TRX to your Monica address and receive naira in your Nigerian bank within 60 seconds of the network confirming.
How does owning crypto affect your taxes in Nigeria?
Holding crypto on its own does not create a tax bill under the published guidelines. A taxable event happens when you dispose of it, for example when you sell it for naira. The gain is the naira you received less what the crypto cost you, so keep the naira figure from each Monica payout.
How is crypto tax calculated in Nigeria in 2026?
The guideline treats the difference between what you paid for the crypto and the naira you received on disposal as your gain. Monica does not set or state a tax rate. Read the current rate and any thresholds on nrs.gov.ng, and speak to a tax professional about your own position.
Apply this with Monica.cash
0% conversion fee, within 60s of confirmation payouts, 7 coins, all banks. Built for the Nigerian use cases this guide covers.