From 2026, dodging taxes in Nigeria could cost crypto startups their licences

From 2026, dodging taxes in Nigeria could cost crypto startups their licences — and ₦10m

Summary

Virtual Assets Service Providers (VASPs) in Nigeria face heavy penalties from 2026 under the Nigeria Tax Administration Act, 2025 (NTAA). Non‑compliant VASPs will incur an administrative fine of ₦10,000,000 for the first month of default and ₦1,000,000 for every subsequent month; the Securities and Exchange Commission (SEC) may suspend or revoke licences. The law makes VASPs explicitly taxable, requires registration for tax purposes, broadens taxable transactions (including sales, staking, airdrops and payments in crypto), and tightens reporting, KYC and record‑keeping obligations.

Key Points

Initial penalty of ₦10,000,000 for first month of tax default; ₦1,000,000 for each following month.
SEC can suspend or revoke VASP licences for non‑compliance.
NTAA 2025 requires VASPs to register with tax authorities and treat crypto transactions as taxable.
Taxable events include exchange, trading, custody, issuance, mining/staking income, airdrops, bounties and payments for goods/services in crypto.
VASPs must report large or suspicious transactions to FIRS and NFIU, keep KYC records for seven years.
New rules align Nigeria with regional peers (Kenya, South Africa) and aim to boost tax‑to‑GDP ratio to 18% by 2027.

Context and relevance

The NTAA is part of a wider fiscal overhaul to increase revenue after previous measures under‑performed. Nigeria is a major crypto market and the government is moving from suspicion to stricter oversight, bringing VASPs under the SEC and demanding clearer tax compliance. For operators, this means higher compliance costs and possible pass‑through of VAT or other taxes to customers.

Why should I read this?

If you run or use a crypto business in Nigeria, this is not small print — it could hit your bottom line or shut you down. The rules change what counts as taxable crypto activity, force tougher record‑keeping and threaten licences for dodging payments. In short: read this so you’re not the one surprised by a hefty fine or a revoked licence.