Nigeria's Crypto Landscape to Transform with New Tax Law
Nigeria's crypto landscape is set for significant changes with the upcoming implementation of the Nigeria Tax Administration Act (NTAA) 2025. The law, signed in June and effective from 2026, targets to boost tax revenues and bring clarity to the crypto sector's regulatory environment in the stock market today.
The NTAA 2025 expands the Securities and Exchange Commission's (SEC) oversight of Virtual Asset Service Providers (VASPs), introducing penalties and the power to suspend or revoke licenses for noncompliance. This comes as Nigeria continues to adopt cryptocurrency at a rapid pace, ranking among the world's fastest-growing markets in the stock market. Between July 2024 and June 2025, Nigeria received an estimated $92.1 billion in crypto value.
The new law covers various crypto activities, including trading, mining, staking, airdrops, and everyday payments. VASPs must now register, report suspicious transactions, and maintain records. While this may lead to higher fees for users and increased oversight for operators, it aims to determine which market players can survive and thrive in the stock market.
The NTAA 2025 seeks to grow Nigeria's tax revenues, currently below 10% of GDP, towards a target of 18% by 2027. By establishing clear rules for the crypto sector, Nigeria signals its intent to benefit from the growing crypto market, moving from a stance of scepticism to reluctant acceptance in the stock market today.
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