Nigeria plans to amend current digital asset regulations to tax crypto transactions, according to a Feb. 18 report by Bloomberg. The move, which would bring all eligible crypto transactions on regulated exchanges into the formal tax net, could generate “substantial revenue” for the country.
A bill to provide a framework for taxing crypto transactions and introducing other taxes is currently before lawmakers, with expectations that it will be adopted this quarter. The Nigerian legislature, called the National Assembly, reconvened for its 2025 legislative session on Jan. 14, 2025.
The Nigerian Securities and Exchange Commission (SEC) said that it is also looking to increase crypto licensing, issuing licenses to crypto exchanges so that transactions can be monitored and taxed. In the agency’s view, this will also increase investor confidence and comfort.
In August 2024, the SEC of Nigeria issued its first license to a crypto exchange, which signaled the beginning of regulatory clarity and oversight for cryptocurrency in the African nation. Later, in September 2024, the SEC planned to start enforcement actions against unregulated exchanges — the catch being that there were only two regulated exchanges in the country at that time.
The SEC’s interest in crypto extends to marketing as well. In December 2024, the SEC updated its crypto marketing rules to “curb the menace” of social media influencers promoting unregulated crypto products. Now, virtual asset service providers must have prior approval before engaging with third-party service providers to promote their crypto products.
Nigeria has been a leader in crypto adoption. According to Consensys’ 2024 Perception Survey, 84% of respondents in Nigeria said they owned a crypto wallet. In its Geography of Cryptocurrency Report published in October 2024, Chainalysis ranked the country No. 2 overall in global crypto adoption, highlighting the country’s appetite for decentralized finance.
In addition, residents of Nigeria have adopted stablecoins such as Tether’s USDt (USDT) or USD Coin (USDC) to combat the high inflation and steep depreciation of the naira (Nigeria’s currency). According to Chainalysis, Nigeria received $21.8 billion in stablecoins between July 2023 and June 2024, leading all Sub-Saharan African nations.