Nigeria’s finance ministry has introduced new tax rules targeting cryptocurrencies and virtual assets, imposing a 1.5% stamp duty on transactions, according to businessday.ng. The framework marks the country’s first comprehensive approach to regulating digital assets, aiming to generate revenue and bring the sector under legal oversight.
Industry stakeholders have expressed concerns over the new regulations, fearing they could stifle innovation and reduce investor confidence. The tax applies to all crypto transactions, including trading and transfers, and is expected to be enforced by the end of the year. Critics argue the rate is high compared to other jurisdictions and may drive businesses overseas.
The move comes as Nigeria seeks to formalize its growing crypto market, which has seen increasing adoption among retail investors. However, the government has emphasized the need for a stable regulatory environment to prevent money laundering and fraud. The tax is part of broader efforts to integrate digital assets into the formal financial system.
The new rules will be implemented alongside existing financial regulations, with the aim of creating a transparent and accountable framework for virtual assets. (businessday.ng)
