Nigeria Plans to Introduce a Tax on Crypto Transactions

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Nigeria is set to implement taxes on cryptocurrency transactions as part of a broader initiative to enhance government revenue, as reported by the country’s Securities and Exchange Commission.

Bloomberg reports that a bill detailing this tax framework is currently under review and is anticipated to be approved within this quarter.

The SEC intends to integrate eligible crypto transactions on regulated exchanges into the official tax system. While the regulator has highlighted the “substantial amount of tax revenue that will accrue from cryptocurrency transactions,” it hasn’t provided specific estimates.

This decision comes amidst Nigeria’s struggle with high inflation and a declining naira, which has prompted many residents to use cryptocurrencies as a financial hedge.

Since assuming office in 2023, President Bola Tinubu has introduced fiscal reforms aimed at increasing revenue and reducing the national deficit.