- The measure seeks to put a tax on cryptocurrencies in light of their rising profile.
- Gains from the sale of digital assets, such as crypto, were subject to a new 10% tax.
The Finance Act, 2023 was signed into law by outgoing Nigerian President Muhammadu Buhari on his last day in office, May 28. The legislation enacts a number of tax changes designed to bring the country’s tax system into the contemporary era. Gains from the sale of digital assets, such as cryptocurrency, were subject to a new 10% tax under its terms.
The all-encompassing bill was drafted with the intention of increasing government openness, increasing tax collection, and stimulating the economy. The measure seeks to put a tax on cryptocurrencies in light of their rising profile.
Recognizing Crypto as Legal Assets
To guarantee that those who own digital assets pay their fair share of taxes for Nigeria’s development, the government has taken this step to level the playing field. This demonstrates Nigeria’s understanding of the political and economic importance of digital assets and its commitment to keeping its tax system current with these developments.
The additional taxes may be considered a step towards recognizing cryptocurrencies as legal assets and integrating them into the current financial and regulatory system, according to Barnette Akomolafe, CEO of the crypto payments service M7pay. This follows a February 2021 ban by the Central Bank of Nigeria on commercial banks serving cryptocurrency exchanges.
A second cryptocurrency expert from the area warned that the valuation, transaction monitoring, and cross-border complexity of digital assets might make them difficult to tax. They also stressed the need for governments setting clear norms and providing enough taxpayer education and assistance. More crypto aficionados seemed to agree with this viewpoint.
