By Mary Izuaka

 

The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have released new guidelines to provide a clear administrative framework for the taxation of virtual assets in Nigeria.

In a joint statement issued on Monday, the agencies said the “Guidelines on the Taxation of Virtual Assets” were issued to provide clarity, certainty, and consistency in the administration of Nigeria’s tax laws as they relate to the rapidly evolving virtual asset ecosystem.

The move comes amid rising adoption of cryptocurrencies and other digital assets in Nigeria, as well as increased peer-to-peer trading on unregulated platforms.

The guidelines

According to the statement, the guidelines set out the applicable tax obligations including registration, reporting and record-keeping obligations, valuation principles, and the tax treatment of virtual asset transactions in accordance with the provisions of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.

The guidelines specifically target taxpayers, Virtual Asset Service Providers (VASPs), Peer-to-Peer (P2P), marketplace operators, tax practitioners and all individuals and businesses involved in virtual asset transactions.

The guidelines, according to the statement, are intended to promote voluntary compliance, enhance transparency, and support the development of a fair and efficient tax framework for digital asset transactions.

“All affected taxpayers and stakeholders are encouraged to familiarise themselves with the provisions of the Guidelines and ensure full compliance with the applicable tax obligations.

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“The guidelines on the Taxation of Virtual Assets are available for download on the Nigeria Revenue Service and Joint Revenue Board websites respectively,” it said.

The development signals Nigeria’s latest attempt to regulate and tax the virtual asset space after years of policy uncertainty.

In February 2021, the Central Bank of Nigeria (CBN) directed banks in the country to close all cryptocurrency-related accounts.

At the time, the CBN claimed that the restriction was necessary in view of the money laundering and terrorism financing risks posed by cryptocurrency. The apex bank also said the vulnerability inherent in cryptocurrency operations, as well as the absence of regulation and consumer protection measures, were also responsible for the policy.

However, in December 2023, the CBN reversed this restriction, replacing the ban with new guidelines to regulate Virtual Asset Service Providers.