The Nigeria Revenue Service (NRS) has issued new virtual asset tax guidelines that impose a 1.5% stamp duty on cryptocurrency transactions, with the tax to be remitted to the government in the same digital asset being traded.

The guidelines, released on Monday, apply to both token-to-fiat and fiat-to-token transfers. Rather than deducting the levy from a buyer's bank account, registered crypto exchanges and other virtual asset service providers (VASPs) are required to withhold the tax from the digital assets credited to a buyer's wallet before remitting it to the government.

"Income tax deducted at source and stamp duty shall be remitted to the Service in the originating token of the transaction," the tax authority stated.

The framework represents Nigeria's most comprehensive effort to date to integrate cryptocurrency transactions into the national tax system. It also marks a significant shift in official posture toward digital assets: in 2021, the Central Bank of Nigeria (CBN) directed banks and financial institutions to close accounts transacting in cryptocurrencies, a restriction that was lifted in December 2023 when the CBN issued revised guidelines allowing banks to operate accounts for VASPs subject to registration and compliance requirements. The new tax rules build on that reopening by formalizing the fiscal treatment of a sector that had continued to grow despite regulatory uncertainty, with Nigeria ranking among the countries with the highest levels of peer-to-peer crypto trading activity globally.

Beyond the 1.5% stamp duty on eligible virtual asset transactions, the guidelines effectively designate crypto exchanges as tax collectors, obligating them to deduct taxes in digital assets before users receive their tokens. The rules also clarify how income tax, value-added tax (VAT), and stamp duty apply to activities such as trading, staking, mining, and other virtual asset transactions.

"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 wrote.

To illustrate how the levy functions, the NRS provided a worked example: "User A pays ₦1,000,000 to acquire 1 BTC at a market price of ₦1,000,000 per BTC. Stamp duty at 1.5% = 0.015 BTC withheld from token credited to User A."

"Net BTC credited to User A = 0.985 BTC. Seller receives ₦1,000,000 in full. VASP remits 0.015 BTC to NRS. User A later sells 0.985 BTC at ₦2,000,000 per BTC (proceeds = ₦1,970,000). User A receives ₦1,970,000 in full. Buyer receives 0.985 BTC less 1.5% stamp duty = 0.970225 BTC."

The new rules go beyond the existing ₦50 ($0.037) stamp duty that applies to electronic withdrawals of ₦10,000 ($7.33) and above. In January, exchanges such as Quidax informed users that the charge would apply to qualifying naira withdrawals under the Nigeria Tax Act (NTA) 2025.

"We'd like to share a quick update regarding recent changes under the Nigeria Tax Act 2025 and how they affect your Quidax withdrawals," Quidax told customers in an email on January 15, 2026. "Going forward, a ₦50 stamp duty charge will apply to any withdrawal of ₦10,000 or more."

The latest guidelines establish a separate 1.5% stamp duty on eligible virtual asset transactions, extending to transactions facilitated through a VASP or other recognised intermediary. In such cases, the VASP or intermediary is responsible for deducting and remitting the applicable stamp duty. Where a virtual asset is used to settle a transaction that independently attracts stamp duty under the NTA, the applicable duty on the underlying instrument also applies.

For cryptocurrency users in Nigeria, the practical consequence is that acquiring digital assets has become more costly. Every eligible transaction now carries a 1.5% stamp duty, and users may also face VAT on exchange service fees and income tax on gains, depending on the nature of the transaction. The requirement that the stamp duty be remitted in the traded digital asset itself—rather than in naira—means the NRS will accumulate cryptocurrency holdings, raising questions about how the government plans to custody and manage those assets, areas the guidelines do not address in detail. The framework may also serve as a reference point for other African jurisdictions that are developing their own approaches to taxing digital asset activity, as several countries across the continent have yet to establish comparable rules.