Nigeria signs crypto order on tax framework

TLDR

Nigeria has signed an executive order that creates a coordinated regulatory and tax framework for cryptocurrencies and other virtual assets.

1. The order sets up a Virtual Asset Council to harmonize oversight across the central bank, securities regulator and tax authority without creating a new standalone crypto regulator.
2. Nigeria Revenue Service is mandated to design a dedicated digital asset tax policy, building on existing rules that already link crypto transactions to tax identification numbers.
3. For users and businesses, clearer licensing and reporting rules are coming, raising enforcement risk for unregistered platforms but improving certainty for compliant operators and institutions.

Deep Dive

1. Order And Council Structure

President Bola Tinubu signed a Presidential Executive Order on Virtual Assets Coordination that aims to fix Nigerias fragmented crypto oversight by coordinating the work of financial, capital markets and revenue agencies under a shared framework, rather than reshuffling powers or creating a new watchdog. Reports describe a Virtual Asset Council chaired by the Central Bank of Nigeria and including the Securities and Exchange Commission and Nigeria Revenue Service, with 30 days to deliver a harmonized implementation plan covering all virtual assets and a regulatory sandbox for new products.

The order adopts an activity based model: registration and supervision will depend on what a firm actually does and what type of asset it handles, closing gaps that let unregistered operators escape oversight in the past, according to official briefings such as this executive order summary. Legislative work continues in parallel through the Virtual Asset Service Providers Regulation Bill, which would codify licensing and transparency requirements for exchanges and other crypto businesses.

2. Crypto Tax Framework

Tax is explicitly folded into the new structure. The Nigeria Revenue Service is tasked with issuing a dedicated tax policy for virtual assets, with the order positioning tax rules as part of the coordinated oversight rather than a separate track, as covered in this policy overview. So far, no new tax rates have been set, but enforcement and reporting expectations are being tightened.

Important groundwork is already in place. Since early 2026, under the Nigeria Tax Administration Act and in line with the OECD Crypto Asset Reporting Framework, crypto service providers must link transactions to tax and sometimes national identification numbers, making it harder to hide activity from the tax system, according to recent guidance.

3. Impact And Next Steps

Nigeria is one of Africas largest crypto markets, accounting for around 60% of stablecoin inflows in sub Saharan Africa and about $59 billion of crypto inflows between mid 2023 and mid 2024, according to IMF based estimates. The new order is designed to channel that activity into a supervised, tax compliant structure rather than to shut it down.

In practice, the biggest shifts will be for exchanges, wallet providers and payment platforms, which face forthcoming licensing rules, sandbox participation conditions and stricter anti fraud and anti money laundering expectations. Peer to peer traders and users on unregistered platforms may see more scrutiny as the framework matures, while clearer rules could make it easier for larger institutions and global firms to participate if they comply.

Confidence: high because multiple independent regulatory focused reports describe the same council structure, adoption metrics and tax role, although detailed tax rates and licensing thresholds are still pending formal publication.

Conclusion

Nigerias crypto order is less about introducing new taxes immediately and more about building a unified, enforceable regime that ties digital asset activity to existing financial and tax systems. Near term it increases compliance burdens and reduces room for unregistered operators, but over time it could provide the regulatory clarity and tax certainty that larger, more conservative players look for when deciding whether to engage with Nigerias fast growing crypto market.