Nigeria’s Securities and Exchange Commission (SEC) is working on new regulations to bring eligible cryptocurrency transactions under the formal tax framework as part of ongoing efforts to boost government revenue.
In a response to Bloomberg’s inquiries, the SEC confirmed that the proposed rules aim to capture tax revenues from crypto trading, which has gained significant traction among Nigeria’s young and tech-savvy population. While the commission did not specify expected revenue figures, it acknowledged that taxing digital asset transactions could generate substantial government income.
The push for crypto taxation aligns with broader fiscal reforms under President Bola Tinubu’s administration, which seeks to expand Nigeria’s revenue base and reduce the budget deficit. A bill outlining a legal framework for taxing cryptocurrency transactions is currently before the National Assembly and is expected to be passed into law within the quarter.
Cryptocurrency trading has surged in Nigeria, largely due to high inflation and the naira’s sharp depreciation against the US dollar since mid-2023. To regulate the market more effectively, the SEC is also expanding the licensing framework for digital asset platforms, allowing formal, centralized exchanges to operate legally. The commission expects these regulated platforms to improve investor protection, enhance transaction monitoring, and facilitate tax compliance.
“We anticipate gradual traction toward centralized exchanges because they will provide greater protections and comfort for investors,” the SEC stated.
Last August, the SEC granted an Approval-in-Principle to two crypto exchanges, Quidax and Busha, under its Accelerated Regulatory Incubation Program (ARIP), signaling its readiness to regulate the industry. Additionally, four digital asset firms—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—were admitted into its Regulatory Incubation (RI) Program to test their business models under oversight. The SEC noted that more companies are undergoing evaluation and may receive regulatory approval if they meet the necessary requirements.
With the government tightening oversight and integrating digital assets into the formal tax system, Nigeria’s crypto industry is on the verge of significant transformation. The evolving regulations could reshape how cryptocurrencies are traded in the country, while also creating new compliance obligations for exchanges and traders.
