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Nigerians to Pay More? SEC Moves to Tax Cryptocurrency Transactions with New Rules

By Achimi Muktar

The Nigerian Securities and Exchange Commission (SEC) is tightening its grip on the cryptocurrency market, rolling out new rules aimed at taxing all eligible transactions on regulated exchanges. This move is part of the government's broader effort to boost revenue and bring digital assets into the formal tax system.

According to a Bloomberg report, the SEC confirmed in an email response that the proposed regulations would help capture tax revenue from the growing cryptocurrency sector, which has become a financial refuge for Nigeria’s tech-savvy youth.

While the commission did not provide specific projections on expected revenue, it acknowledged the “substantial amount” that could be generated through this taxation framework.

Crypto Trading in Nigeria: A Lifeline Under Threat?

For many Nigerians, cryptocurrency has been more than just a digital asset—it has served as a hedge against the country’s soaring inflation and the rapid devaluation of the naira against the U.S. dollar. Since mid-2023, Nigerians have increasingly turned to crypto as a safer store of value.

However, the SEC’s latest move signals a shift toward tighter regulation and oversight. The commission is also working on expanding licensing requirements to ensure that only formal, centralized exchanges operate within the country.

“We anticipate gradual traction toward centralized exchanges because they will provide greater protections and comfort for investors,” the SEC stated.

Crypto Taxation Bill Nears Approval

Beyond SEC’s regulations, a new bill aimed at taxing cryptocurrency transactions and introducing additional levies is currently being reviewed by the National Assembly. The legislation is expected to be passed into law within the next quarter.

This aligns with President Bola Tinubu’s fiscal reforms, which prioritize increasing government revenue and reducing the country’s budget deficit. Since taking office in 2023, Tinubu’s administration has been pushing for an overhaul of Nigeria’s tax policies to enhance financial sustainability.

In fact, last week, lawmakers approved a record-breaking 2025 budget of N54.99 trillion ($36.4 billion), further underscoring the government’s aggressive revenue-generation strategy.

SEC’s Growing Influence in the Crypto Industry

This is not the SEC’s first major step toward regulating the Nigerian cryptocurrency space. In August 2023, the commission granted Approval-in-Principle to two major crypto exchanges, Quidax and Busha, under its Accelerated Regulatory Incubation Program (ARIP).

Additionally, four digital asset firms—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—were admitted into the Regulatory Incubation (RI) Program, allowing them to test their technology models under SEC’s supervision.

The SEC clarified that more firms are under review, with approvals granted on a case-by-case basis as they meet regulatory standards.

What This Means for Crypto Users in Nigeria

With these new tax regulations on the horizon, Nigerian crypto traders and investors should prepare for increased scrutiny and possible higher transaction costs.

While the SEC argues that centralized exchanges will provide better investor protection, many crypto enthusiasts fear that excessive regulation and taxation could push more traders toward decentralized, unregulated platforms.

As the government races to formalize and tax the sector, the question remains—will these new policies strengthen Nigeria’s crypto market, or will they drive traders underground?