The Nigeria Revenue Service issued Information Circular No. 2026/21 on 31 July 2026 as administrative guidance under the Nigeria Tax Act, 2025 and the Nigeria Tax Administration Act, 2025. The circular is in force from the date of issue. It establishes mandatory tax treatment for all virtual asset activities conducted by persons and entities within Nigerian tax jurisdiction and is addressed to Virtual Asset Service Providers, peer-to-peer marketplace operators, tax practitioners, and individual investors.
The circular designates three tax instruments. First, virtual asset services attract value added tax at the standard rate of 7.5% under section 4 of the Nigeria Tax Act, 2025. Second, token conversions attract stamp duty at 1.5% under the Stamp Duties Act as amended by the Finance Act, 2020. Third, disposal gains on cryptocurrencies, stablecoins, and tokenised securities, and income from mining rewards and staking rewards, are subject to income tax at the rates specified in the Nigeria Tax Act, 2025. All virtual assets must be valued at the prevailing market price on an NRS-approved exchange at the time the transaction occurs.
The circular binds four categories of market participants. Virtual Asset Service Providers registered with the Securities and Exchange Commission of Nigeria must file periodic tax reports and withhold applicable taxes on transactions facilitated through their platforms. Peer-to-peer marketplace operators must collect stamp duty on token conversions. Individual investors must report disposal gains in annual income tax returns. Non-fungible token creators and decentralised finance protocol participants are expressly included within scope; gains from NFT sales and returns from DeFi liquidity provision attract income tax.
The circular does not specify an effective date separate from the date of issue, leaving unresolved whether virtual asset activities conducted before 31 July 2026 but reported or assessed after that date fall within its scope. Registration and record-keeping requirements imposed on VASPs apply immediately. The NRS has not published a separate compliance timetable or transitional provisions.
Licentium advises virtual asset businesses and investors with operations or customer bases in African markets on tax structuring and regulatory compliance. Work we undertake includes VASP licensing and registration, tax reporting obligation assessments, cross-border token transaction structuring, and regulatory engagement with the Nigeria Revenue Service and the Securities and Exchange Commission of Nigeria.