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Govt pegs 1.5% stamp duty on cryptocurrency conversions in Nigeria, new tax rules reshape digital asset market – Technology Times
The Nigeria Revenue Service (NRS) has introduced a 1.5% stamp duty on cryptocurrency conversions, requiring taxes to be collected whenever fiat currency is exchanged for virtual assets or virtual assets are converted into fiat currency, in a move that brings greater tax certainty to Nigeria’s rapidly expanding digital asset market.
The measure is contained in the Guidelines on the Taxation of Virtual Assets, issued on July 31, 2026, which establishes Nigeria’s most comprehensive tax framework yet for virtual asset transactions involving taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, financial institutions and other participants in the country’s digital asset ecosystem.
The guidelines clarify tax obligations, reporting requirements, valuation methods, collection mechanisms and enforcement procedures governing cryptocurrency and other virtual asset transactions.
According to the guidelines, the tax obligation arises immediately a cryptocurrency is converted to or from fiat currency within Nigeria, irrespective of what subsequently happens to the digital asset.
Cryptocurrency: NRS applies stamp duty to crypto-to-fiat, fiat-to-crypto conversions
Under the guidelines, stamp duty applies specifically to FIAT-to-TOKEN and TOKEN-to-FIAT transactions under Item 33 of the Ninth Schedule to the Nigeria Tax Act, 2025.
Where a cryptocurrency conversion is processed through a VASP or another recognised intermediary, the operator is responsible for deducting and remitting the applicable stamp duty in accordance with procedures prescribed by the Nigeria Revenue Service.
The NRS further clarified that where a virtual asset is used to settle a transaction that independently attracts stamp duty under the Nigeria Tax Act, the applicable duty on the underlying instrument remains payable.
This means that both the stamp duty arising from the cryptocurrency conversion and any other applicable stamp duty under the Act may apply to the same transaction where separate taxable events occur.
According to the guidelines, the tax obligation arises immediately a cryptocurrency is converted to or from fiat currency within Nigeria, irrespective of what subsequently happens to the digital asset.
“The stamp duty obligation crystallises at the point of the TOKEN to FIAT or FIAT to TOKEN conversion in Nigeria and is not affected by the subsequent transmission of the token to an offshore recipient,” the guidelines state.
Buyers to bear 1.5% crypto stamp duty
The NRS guidelines provide that the recipient of the virtual asset bears the stamp duty in every dutiable transaction.
Rather than deducting the levy from the fiat amount paid, Virtual Asset Service Providers are required to withhold the equivalent of the 1.5% duty in cryptocurrency units from the digital asset credited to the buyer.
Under this arrangement, the seller receives the full fiat consideration, while the buyer receives the cryptocurrency after the applicable stamp duty has been deducted.
The guidelines illustrate the mechanism using a transaction in which a buyer pays ₦1 million to acquire one Bitcoin. A stamp duty equivalent to 1.5% of the Bitcoin is deducted before the cryptocurrency is credited to the purchaser, while the seller receives the entire ₦1 million.
If the cryptocurrency is subsequently sold, the next purchaser will similarly receive the asset net of the applicable stamp duty deduction.
P2P crypto platforms brought under tax framework
The new framework extends beyond conventional cryptocurrency exchanges to include peer-to-peer (P2P) transactions facilitated through supervised intermediaries.
P2P platforms operating escrow services will assume the same tax collection responsibilities as cryptocurrency exchanges.
The guidelines further state that platforms facilitating virtual asset transactions without taking custody of customer assets may still be required to register, report transactions and collect taxes where they qualify as Virtual Asset Service Providers under Nigerian law.
Only genuine wallet-to-wallet transactions conducted entirely outside intermediary platforms will not have taxes deducted at source. In such cases, taxpayers will be required to declare the transactions and pay applicable taxes through annual self-assessment.
Stamp duty separate from VAT, income tax
The Nigeria Revenue Service emphasised that the new stamp duty is separate from other tax obligations that may arise from virtual asset transactions.
According to the guidelines, the transfer of ownership of a virtual asset does not, by itself, constitute a taxable supply for Value Added Tax (VAT).
However, VAT remains applicable to taxable services associated with digital asset transactions, including:
Similarly, where virtual assets are used as payment for taxable goods or services, VAT applies to the underlying supply just as it would if payment had been made in fiat currency.
The guidelines further note that taxpayers who realise gains from disposing of virtual assets may also be liable to income tax under the Nigeria Tax Act.
As a result, a single cryptocurrency transaction could trigger multiple tax obligations where different taxable events occur.
VASPs required to collect and remit taxes
The guidelines fix the applicable stamp duty rate at 1.5% on both FIAT-to-TOKEN and TOKEN-to-FIAT transactions.
Virtual Asset Service Providers and VASP-operated P2P marketplaces are required to collect the duty from the cryptocurrency credited to the transferee, while leaving the fiat value of the transaction unchanged.
Collected stamp duties must be remitted to the Nigeria Revenue Service not later than the 15th and 30th of the month in which the transaction occurred.
New compliance obligations for crypto platforms
Beyond collecting stamp duty, the guidelines introduce broader compliance obligations for participants in Nigeria’s digital asset ecosystem.
Every person engaged in virtual asset activities must register for tax purposes and obtain a Tax Identification Number (Tax ID).
VASPs and P2P marketplace operators are required to make a valid Tax ID a mandatory requirement for opening customer accounts.
They must also deduct applicable taxes, collect stamp duties, account for VAT where applicable, file statutory tax returns and maintain proper transaction records in accordance with the Nigeria Tax Administration Act.
The guidelines prescribe stiff penalties for non-compliance.
VASPs and P2P marketplace operators that fail to comply face a penalty of ₦10 million for the first month of default and ₦1 million for each subsequent month of continued non-compliance.
Additional sanctions apply for failure to register, file tax returns, deduct or remit taxes, maintain statutory records or pay taxes as required.
Nigeria deepens regulation of digital assets
The new guidelines represent one of Nigeria’s most comprehensive efforts to establish a clear tax regime for virtual assets.
By defining how cryptocurrency conversion transactions are taxed and imposing new compliance obligations on digital asset platforms, the framework is expected to strengthen regulatory certainty, improve tax administration and support the continued development of Nigeria’s digital asset ecosystem as cryptocurrency adoption continues to expand.
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WAFU-B Women’s Champions League Qualifiers: Ruthless Edo Queens Crush AS Garde Nationale 7-0, Moses Bags Hat-Trick
Nigeria champions Edo Queens made a sensational start to their WAFU-B Women’s Champions League qualifying campaign after thrashing AS Garde Nationale of Niger 7-0 in their opening Group B encounter in Ouagadougou, Burkina Faso.
Edo Queens wasted no time making their intentions clear as Chioma Moses opened the scoring in the fifth minute, giving the Nigerian champions an early advantage and putting their opponents under immediate pressure.
Read Also: Gift Okunwa-Igunbor: NFF Fact-Finding Committee Must Demand Better Working Conditions
Moses doubled the lead in first-half stoppage time after converting from the penalty spot, sending Edo Queens into the break with a commanding 2-0 advantage.
The Nigerian champions returned from the interval with even greater intensity, with Atume Doosuur scoring just two minutes into the second half to make it 3-0.
Doosuur completed her brace in the 56th minute before Aminat Folorunsho added a fifth goal six minutes later as Edo Queens continued to tear apart the AS Garde Nationale defence.
Moses completed her hat-trick in the 76th minute, producing the standout individual performance of the match, before Oluwakemi Adegbuyi put the finishing touch on the emphatic victory with the seventh goal in the third minute of stoppage time.
The victory was built around a sensational display from Chioma Moses, who emerged as the Woman of the Match after scoring three goals and playing a central role in Edo Queens’ dominant performance.
Moses’ hat-trick not only underlined her clinical finishing but also gave the Nigerian champions a major attacking weapon as they began their campaign in emphatic fashion.
The 7-0 demolition gives Edo Queens an early boost in their bid to secure another appearance at the CAF Women’s Champions League after their impressive run in the competition in 2024.
Edo Queens won the WAFU-B competition on their debut in 2024 before going on to finish fourth at the CAF Women’s Champions League later that year. (“aclsports.com” (https://www.aclsports.com/caf-womens-champions-league-edo-queens-in-burkina-faso-for-qualifiers/?utm_source=chatgpt.com))
Ahead of this year’s competition, Edo Queens assistant coach Gabriel Benson had expressed confidence in the squad and challenged the players to represent Nigeria and Edo State with pride.
“Edo Queens have all it takes to make the country proud,” Benson said before the tournament. (“punchng.com” (https://punchng.com/edo-queens-begin-wafu-b-campaign-against-as-gnn/?utm_source=chatgpt.com))
“The girls are ready and good to go.”
They backed up that confidence with a ruthless performance, with Moses’ hat-trick and Doosuur’s brace highlighting the attacking firepower available to the Nigerian champions.
Edo Queens will now turn their attention to their remaining Group B fixtures against ASEC Mimosas of Côte d’Ivoire and Ghanaian champions Ampem Darkoa, knowing that stronger tests await them in their pursuit of a place in the CAF Women’s Champions League.
But after putting seven goals past AS Garde Nationale in their opening match, Edo Queens have already delivered a powerful warning to their WAFU-B rivals — and with Woman of the Match Chioma Moses leading the charge, the Nigerian champions look ready for another big continental run.
The Global Environment Facility (GEF), a family of funds supporting environmental action globally, says African countries are the largest beneficiaries of its funding for sustainable environmental projects.
Ulrich Apel, GEF Senior Environmental Specialist, disclosed this on Monday while responding to questions on mechanisms for accessing environmental finance.
Apel said Africa had received about 30 per cent of GEF funding, ahead of Asia, which received 18 per cent, and Latin America and the Caribbean, which received 15 per cent.
“First of all, we have programmes that cover all the available funding. We programme all of our available funding, and in fact, the African region is the largest beneficiary of our funding, having received about 30 per cent of the funds, followed by Asia with 18 per cent, and Latin America and the Caribbean with 15 per cent,” he said.
He was responding to PREMIUM TIMES’ questions about how African countries, including Nigeria, could more easily access GEF funding.
According to him, African countries are a particular focus of the GEF’s funding because of the region’s vulnerability to land degradation, desertification and drought, which are central issues at the ongoing United Nations Convention to Combat Desertification (UNCCD) COP17.
“So, I don’t think the problem is necessarily the accessibility of funds, because we programme all the funding that we have available,” Apel said.
The disclosure came as governments, financial institutions and businesses at UNCCD COP17 in Mongolia intensified efforts to mobilise finance for land restoration and drought resilience.
Finance takes centre stage at COP17
24 August was designated as Finance Day at UNCCD COP17 in Ulaanbaatar, Mongolia, with discussions across meeting rooms and the plenary hall focused on mobilising public and private investment for land restoration and drought resilience.
The 17th Conference of the Parties to the UNCCD is placing particular emphasis on rangelands — including drylands, grasslands, shrublands, wetlands and deserts — which cover more than half of the Earth’s land surface.
Despite their importance to pastoralists, biodiversity, food systems and carbon storage, about half of the world’s rangelands are estimated to be degraded.
Against this backdrop, governments, development banks, investment funds and businesses participating in COP17 on Monday announced $1.3 billion in new and pipeline financing for land restoration and drought resilience across 23 countries on five continents.
GEF unveils drought programme
The GEF also announced the development of a new Drylands and Drought Management Integrated Program aimed at helping countries proactively manage drought, strengthen resilience in drylands and respond to growing risks to ecosystems, food security, water availability, livelihoods and health.
The programme will be implemented during the GEF-9 investment cycle, covering 2026 to 2030.
The facility said the programme responds to requests from parties to the UNCCD for the GEF to prioritise drought resilience in its programming.
It will support countries and communities in better preparing for, monitoring, assessing, mitigating, and responding to the cascading impacts of drought.
“Investing in healthy land and healthy people means investing in food security, climate resilience, biodiversity, water, jobs, and peace,” said Claude Gascon, GEF Interim CEO and Chairperson.
“Through this new Integrated Program, we will support countries in moving from crisis response toward proactive drought resilience.”
The Drylands and Drought Management Integrated Program has a tentative GEF grant envelope of $140 million.
It will work closely with the Riyadh Global Drought Resilience Partnership, the Drought Resilience Investment Facility, and other initiatives that support resilience across drylands and rangelands.
GEF backs rangelands initiative
As part of the broader push, the GEF is also supporting the Rangelands Flagship Initiative, a multi-partner global initiative led by Mongolia and the UNCCD to significantly increase investments in conserving, sustainably managing and restoring rangelands.
The GEF supports the development and coordination of the initiative through the UNCCD COP17 Legacy Project, a $3.3 million GEF investment implemented by the International Union for Conservation of Nature (IUCN).
The project is leveraging an additional $8 million in co-financing from Mongolia and IUCN.
During the GEF-8 cycle, which runs from 2022 to 2026, the GEF approved 50 projects across its family of funds supporting sustainable rangeland management and restoration, as well as pastoralist livelihoods.
The projects represent a total investment of more than $300 million.
The GEF said the projects, which are at various stages of development, could complement the Rangelands Flagship Initiative and help scale up successful approaches to rangeland management and restoration.
What GEF-9 means for Africa
With an initial programming level of $3.9 billion, GEF-9 will support expanded investments in nature-positive development, drought resilience and sustainable land management.
Four GEF-9 Integrated Programs are strongly aligned with UNCCD objectives and are expected to attract more than $800 million in GEF grant funding.
READ ALSO: COP17 advances $1.3bn for land restoration, puts rangelands at centre
They include programmes focused on Food Systems, Critical Forest Biomes, Blue and Green Islands, and the new Drylands and Drought Management Integrated Program.
Under GEF-9, drought resilience is expected to become more central, targeted and measurable.
The cycle includes a dedicated objective for implementing national drought plans, a drought vulnerability index incorporated into the resource allocation formula for countries, and new indicators to track improvements in drought resilience.
The GEF said GEF-9 would enable investments that help countries address urgent environmental priorities through a whole-of-government and whole-of-society approach.
Across the GEF family of funds, 20 per cent of resources are expected to benefit Indigenous Peoples and local communities directly.
The replenishment also places greater emphasis on mobilising private capital for environmental action. Ten per cent of total GEF-9 funding is allocated to the blended finance window, with an overall target of using 25 per cent of GEF resources to help mobilise private-sector investment
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