Nigeria’s $92 Billion Crypto Market Faces Fresh Tax Concerns

Nigeria’s $92 Billion Crypto Market Faces Fresh Tax Concerns

Nigeria's rapidly expanding cryptocurrency market is facing renewed concerns from industry participants following the introduction of new tax rules governing digital-asset transactions.

The country's virtual-asset market processed an estimated $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, making Nigeria one of the largest crypto markets in Sub-Saharan Africa. Much of that activity is driven by young Nigerians who use digital assets for trading, payments, savings and other financial activities.

The Digital Assets Coalition, which represents participants and operators within the sector, has raised concerns that aspects of the new tax framework could place unnecessary pressure on the industry, particularly if taxation is applied to the value moving through transactions rather than the actual profit earned.

Industry participants argue that taxing transaction values could affect traders and businesses that move large amounts of digital assets without necessarily making equivalent profits. They are therefore calling for a system that focuses more directly on realised gains and income rather than simply the amount of money passing through a platform.

The debate comes as Nigeria continues to tighten its regulatory approach to cryptocurrency. The country's broader tax reforms and evolving rules for virtual-asset service providers are bringing the once largely informal crypto economy further into the formal financial system.

For regulators, stronger taxation and reporting requirements could improve transparency, compliance and government revenue. For crypto businesses and users, however, the concern is that excessive costs could push some activity away from regulated platforms and into informal or offshore channels.

The issue is particularly significant for Nigeria because cryptocurrency adoption has become closely connected to the country's younger population. The IMF estimates that Nigeria had about 25.9 million digital-asset users by 2025, with stablecoins playing an increasingly important role in cross-border transactions.

The debate therefore goes beyond whether cryptocurrency should be taxed.

It raises a bigger question about how Nigeria can regulate a rapidly growing digital economy without discouraging the young entrepreneurs, traders and technology builders who have helped make the country one of Africa's most active crypto markets.

As the new tax framework takes shape, both regulators and industry participants will be watching closely to see whether the rules can strike a balance between government revenue, investor protection and continued innovation.

Do you think Nigeria should tax cryptocurrency profits, transaction volumes, or find another approach entirely?