Nigeria Tax Administration Act, 2025 · Circular 2026/21 ¶8
The rates, in one place
1% withheld on disposal proceeds, 10% on rewards, 1.5% stamp duty, 7.5% VAT on fees.
Who this lands on: Everyone in the framework. These hold until the Service revises them.
Gains on disposal: taxed at the ordinary rates — the progressive scale for individuals, 30% for companies other than small companies — and self-assessed on the annual return.
Withholding tax on disposal proceeds: 1% of gross proceeds for Categories 1, 3 and 5, taken by the service provider in the token being disposed of. It is on the gross, not on the gain, and the naira value of the tokens withheld becomes a credit on your annual return.
Stablecoin disposals carry no withholding tax. Any gain goes on the self-assessment return.
Rewards treated as passive income — staking, mining, airdrops, DeFi yield: 10%, deducted by the payer. Where the payer is abroad or simply does not deduct, you declare it and account for it yourself.
Professional and consultancy fees received in tokens: 5% or 10%, as the withholding rules apply.
VAT: 7.5% on the service provider's fees — exchange fees, brokerage, custody, wallet management, listing, advisory. Transferring the asset itself is not a taxable supply and carries no VAT. Where tokens pay for goods or services, VAT applies to that supply as normal.
Service providers pay 30% on their own profits like any other company; that is separate from what they withhold for others.