NRS’ New Crypto Guidelines Set 30% Profit Tax for Medium, Large Firms

The Nigeria Revenue Service (NRS) has released Guidelines on the Taxation of Virtual Assets, making clear that medium and large companies that earn profits from cryptocurrency and other virtual asset activities will be subject to a 30 per cent corporate income tax.

Published on Monday in a public notice, the guidelines apply to companies, individual taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer marketplace operators and other participants in Nigeria’s digital asset ecosystem. The move follows President Bola Tinubu’s recent Presidential Executive Order on Virtual Assets Coordination, 2026, which established a cross-agency framework for overseeing cryptocurrencies, stablecoins, and tokenised assets.

Tax scope and rates

Under the guidelines, income from crypto trading, operation of virtual asset exchanges, transaction fees, brokerage commissions, custody and wallet services, token issuance, mining, staking, decentralised finance (DeFi) activities, and investment gains will be taxable. Companies other than “small companies” are to pay the standard 30 per cent corporate income tax under the Nigeria Tax Act, 2025.

“For companies other than small companies, the applicable rate is 30 per cent,” the NRS said, adding that progressive rates under the NTA continue to apply for individuals.

Clarifications and exemptions

The NRS clarified several non‑taxable events to give market participants certainty. Simply holding cryptocurrencies is not a taxable event: unrealised gains remain untaxed until an asset is sold, exchanged or otherwise disposed of in a taxable transaction.

Transfers of virtual assets between wallets owned and controlled by the same individual are also exempt from income tax, provided beneficial ownership does not change.

The exemption does not automatically apply to transfers involving legal entities such as companies, partnerships, trusts or unincorporated associations. The guidelines also note that non‑taxable transfers may nevertheless establish the cost base for future disposals, so taxpayers should keep acquisition and transfer records.

Compliance and enforcement

The framework emphasises voluntary compliance, transparency and consistent administration of tax laws in the evolving digital assets sector. Companies operating in the virtual asset space will be required to meet registration, reporting, withholding, VAT and record‑keeping obligations. The NRS warned that non‑compliance could attract penalties, including fines of N10 million for VASP breaches and additional monthly penalties for continued defaults.

Policy context

The NRS guidance complements the federal government’s broader effort to coordinate oversight of virtual assets. The Presidential Executive Order created a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN), with the NRS and the Securities and Exchange Commission (SEC) as vice chairs. The council includes the Nigerian Financial Intelligence Unit and the Office of the National Security Adviser and will be supported by a Virtual Asset Office within the CBN to facilitate information sharing through a shared supervisory technology platform.

Why it matters

Nigeria has been tightening regulatory oversight as cryptocurrencies become more embedded in financial activity, including cross‑border payments. Industry figures have noted high crypto usage in remittances. The NRS guidelines aim to bring tax clarity to businesses and investors while supporting a harmonised regulatory framework.