FG introduces 1.5% stamp duty on cryptocurrency transactions

The Federal Government has introduced a 1.5% stamp duty on eligible cryptocurrency transactions, bringing digital assets further into Nigeria's formal tax system. New virtual asset taxation guidelines from the Nigeria Revenue Service (NRS) require buyers of Bitcoin, USDT and other cryptocurrencies to pay the levy on qualifying fiat-to-token and token-to-fiat transactions.

How the stamp duty works

Unlike traditional taxes deducted from bank accounts, the levy will be withheld directly in the cryptocurrency being purchased before it reaches the buyer's digital wallet. Registered crypto exchanges and other Virtual Asset Service Providers (VASPs) must collect and remit the tax to the government.

According to the NRS: "Income tax deducted at source and stamp duty shall be remitted to the Service in the originating token of the transaction."

The NRS gave a practical example. If a buyer pays ₦1 million to purchase 1 Bitcoin, the exchange will deduct 0.015 BTC, representing the 1.5% stamp duty, before crediting the customer's wallet. Instead of receiving one full Bitcoin, the buyer receives 0.985 BTC, while the deducted 0.015 BTC is remitted directly to the government. If the same Bitcoin is later sold, the seller receives the full naira proceeds, but the next buyer will again have 1.5% of the purchased cryptocurrency deducted before it is credited to their wallet.

Coverage and existing taxes

The NRS guidelines clarify how income tax, Value Added Tax (VAT), and stamp duty apply across Nigeria's digital asset ecosystem, covering cryptocurrency trading, staking, mining and other virtual asset activities. The tax authority noted that where a virtual asset is used to settle a transaction that independently attracts stamp duty under the Nigeria Tax Act (NTA) 2025, the applicable duty on the underlying transaction will also remain payable.

The new policy comes months after crypto exchanges began implementing the ₦50 stamp duty on naira withdrawals of ₦10,000 and above, following provisions of the Nigeria Tax Act 2025. The newly introduced 1.5% digital asset stamp duty is separate from that charge and significantly expands the government's taxation of cryptocurrency transactions.

What it means for investors

For crypto investors and traders, the immediate implication is higher transaction costs. Every qualifying purchase of Bitcoin, USDT and other eligible digital assets will now attract the 1.5% stamp duty, while users may also pay VAT on exchange service fees and income tax on taxable gains, depending on the nature of their transactions.

The move signals a new phase in Nigeria's regulation of virtual assets. Crypto exchanges now play a central role in tax collection as authorities seek to increase revenue from the country's fast-growing digital economy.