Economy
Navigating the Winds of Change: Crypto Trading in Nigeria Faces New Tax Realities
In the dynamic landscape of Nigeria’s economy, crypto trading has emerged as both a refuge and a challenge amid currency devaluation and economic uncertainties. According to a recent report by New York-based blockchain research firm Chainalysis, Nigeria’s crypto transactions witnessed a substantial 9% year-over-year growth, reaching an impressive $56.7 billion between July 2022 and June 2023. This surge can be attributed to a growing number of Nigerians beginning to trade crypto like bitcoin and stablecoins, particularly during periods of extreme drops in the value of the naira.
From Ban to Tax: The Unpredictable Trajectory
The crypto boom in Nigeria gained momentum as citizens sought alternatives to hedge against the devaluation of the national currency, exacerbated by bold economic reforms implemented by President Bola Tinubu. Notably, the scrapping of a costly petrol subsidy and the removal of certain exchange rate restrictions contributed to the weakening of the naira.
In response to these economic challenges, Nigeria’s young and tech-savvy population turned to cryptocurrencies, leveraging peer-to-peer trading options offered by crypto exchanges to navigate around the 2021 ban on crypto transactions imposed by the country’s banks and financial institutions.
However, as the crypto market flourished, the government took an unexpected turn in 2023. In a surprising move, the Buhari-led government introduced a new law to tax gains on digital assets, including cryptocurrencies. This shift marked a departure from the 2021 ban and showcased the government’s willingness to explore crypto taxation as a potential revenue source.
The crypto tax, embedded in a series of amendments to the 2022 Finance Act, imposes a 10% tax on profits from digital assets. This involves not solely cryptocurrencies but also non-fungible tokens and other tokenized assets, as elucidated by Adewale Ajayi, a partner at KPMG. The implementation of this tax, nevertheless, surprised numerous individuals in the crypto community, instigating discussions on the absence of a well-defined policy framework and stakeholder participation in the decision-making process.
Challenges and Debates: Navigating the Road Ahead
Obinna Iwuno, the president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), expressed bewilderment at the sudden imposition of a tax without a comprehensive policy framework. He highlighted the necessity for cooperation between the government and stakeholders in the cryptocurrency realm to guarantee impartial and well-informed decision-making.
Opponents contend that, although levying taxes on cryptocurrency is not inherently erroneous, excessive taxation could impede the development of an industry that is still in its early stages. Davizoe Effiong, CEO of BEI Consultancy, warned against the potential negative impact on crypto adoption, suggesting that capping the tax profit at 5% could strike a balance between revenue generation for the government and sustaining the growth of the crypto ecosystem.
One key challenge highlighted by crypto traders, such as Wale, is the need for the government to formalize and legitimize the crypto industry. To effectively implement the tax, there must be collaboration with international exchanges and the licensing of crypto traders. The government’s recent directive to Binance Nigeria Limited to cease soliciting Nigerian investors is indicative of its efforts to regulate and control the crypto space.
The crypto community awaits the release of guidelines from Nigeria’s tax authority, the Federal Inland Revenue Service (FIRS), in collaboration with the Joint Tax Board. As the regulatory landscape evolves, questions loom over the enforcement of the tax and its potential impact on the promises made by President Bola Tinubu’s administration, which expressed a bullish stance on crypto and blockchain technology.
Conclusion
In summary, the trajectory of cryptocurrency trading in Nigeria mirrors an intricate interaction among economic circumstances, governmental directives and the ambitions of a technology-savvy populace. While the country contends with the imperative for fresh income streams, the cryptocurrency sector stands at a juncture, weighing the prospective advantages of taxation against the hazard of impeding its advancement. The coming months will reveal how Nigeria navigates these challenges and whether the crypto tax becomes a catalyst for industry maturation or a hurdle to widespread adoption.
By Adedapo Adesanya
Nigeria attracted $10.37 billion in capital importation in the first quarter of 2026, representing an 83.8 per cent increase from the $5.64 billion recorded in the corresponding period of 2025, according to the National Bureau of Statistics (NBS).
The latest Capital Importation Report released by the stats bureau also showed that capital inflows rose by 60.97 per cent from $6.44 billion recorded in the fourth quarter of 2025.
The report stated, “In Q1 2026, total capital importation into Nigeria stood at $10.37bn, higher than $5.64bn recorded in Q1 2025, indicating an increase of 83.83 per cent. In comparison to the preceding quarter, capital importation increased by 60.97 per cent from $6.44bn in Q4 2025.”
Analysis of the inflows showed that portfolio investment remained the dominant source of foreign capital, accounting for $9.86 billion or 95.09 per cent of the total amount imported into the economy.
The stats office disclosed that foreign direct investment stood at $135.08 million, representing only 1.30 per cent of total capital inflows, while other investments accounted for $374.48 million or 3.61 per cent.
“Portfolio Investment ranked top with $9.86bn, accounting for 95.09 per cent, followed by Other Investment with $374.48m, accounting for 3.61 per cent. Foreign Direct Investment recorded the least with $135.08m, representing 1.30 per cent of total capital importation in Q1 2026,” the report added.
A further breakdown showed that money market instruments attracted the largest share of portfolio investments at $6.50 billion, while investments in bonds amounted to $3.23 billion.
Equity investments under the portfolio category stood at $131.81 million.
The banking sector emerged as the biggest destination for foreign capital during the quarter, attracting $7.55 billion, representing 72.79 per cent of total inflows.
The financing sector followed with $2.43 billion or 23.42 per cent, while the production and manufacturing sector attracted $152.27 million, accounting for 1.47 per cent of total capital imported.
Other sectors that received foreign investments included shares, trading, agriculture, information technology services, telecommunications, oil and gas, transport, construction, healthcare, education, and consultancy services.
The United Kingdom remained Nigeria’s largest source of foreign capital, accounting for $5.08 billion or 49.01 per cent of total inflows. The United States followed with $3.18 billion, representing 30.69 per cent, while South Africa accounted for $983.83 million or 9.49 per cent.
Among financial institutions, Standard Chartered Bank Nigeria Limited received the highest capital inflow during the quarter at $4.41 billion, representing 42.56 per cent of the total.
Stanbic IBTC Bank Plc followed with $2.78 billion or 26.79 per cent, while Rand Merchant Bank handled $930.82 million, accounting for 8.97 per cent.
Other banks that facilitated capital inflows into the country during the period included Citibank Nigeria, Access Bank, First Bank of Nigeria, Guaranty Trust Bank, Zenith Bank, FCMB, Ecobank, Fidelity Bank, and United Bank for Africa.
By Aduragbemi Omiyale
The 2026 licensing round for oil fields is expected to commence in the third quarter of 2026, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.
This followed the approval of President Bola Tinubu, who doubles as the Minister of Petroleum Resources.
A statement issued by the spokesperson of NUPRC, Mr Eniola Akinkuotu, on Wednesday said the authorisation is in compliance with the Petroleum Industry Act (PIA).
“We are also fortunate that the President and Minister of Petroleum Resources has approved the 2026 Licensing Round,” the chief executive of the agency, Mrs Oritsemeyiwa Eyesa, was quoted as saying in the statement when she received representatives of Meren Energy (formerly Africa Oil) in Abuja yesterday.
Mrs Eyesan, who expressed satisfaction with the conduct of the 2025 Licensing Round so far, stated that the commercial bid would take place in July, after which the next licensing round would commence.
The NUPRC boss said the heightened participation in the 2025 Licensing Round was a testament to the fact that Nigeria was headed in the right direction.
She said the rise in investments, coupled with the upswing in production, was evidence that Nigeria’s oil and gas sector, under the leadership of President Bola Tinubu, had become attractive.
“We are in the process of finalising the 2026 launch, which will happen by the third quarter at the latest. So, this is the make-or-break point, and we want to make sure we make it,” she stated.
In his remarks, the chief executive of Meren Energy, Mr Oliver Quinn, said the current reforms had inspired the company to increase its investments in Nigeria, hence its interest in asset divestments and licensing rounds, revealing that his company’s investment priority is Africa, of which Nigeria ranks as number one.
“We have operated in Agbami, Akpo and Egina world-class fields. I think till date, in 20 years, about $11bn in capital from our side has gone into these assets, and about $4bn has gone to tax and royalties,” he said, adding, “Nigeria remains the core of our business today because of the quality of these assets.”
According to Mr Quinn, Meren Energy is pressuring its partners on these assets to deepen their investments and then increase overall production, noting that the energy firm was the first in Nigeria to sell crude oil to the Dangote refinery and will continue to fulfil its Domestic Crude Supply Obligation so long as the price remains right.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its gains by 0.91 per cent on Wednesday, June 3, spurred by three price gainers led by FrieslandCampina Wamco Nigeria Plc, which rose by N13.90 to sell N210.41 per share versus the previous day’s N196.51 per share. MRS Oil appreciated by N10 to N190.00 per unit from N180.00 per unit, and Food Concepts Plc added 5 Kobo to sell at N3.00 per share versus N2.95 per share.
As a result, the market capitalisation increased by N23.91 billion to N2.660 trillion from N2.636 trillion, and the NASD Unlisted Security Index (NSI) gained 39.97 points to finish at 4,446.27 points, in contrast to Tuesday’s 4,406.30 points.
The NASD exchange witnessed three price losers at midweek, led by Nipco Plc, which shrank by N21.30 to close at N325.97 per unit compared with the previous session’s N347.27 per unit, Nitrox Industrial Gases Plc went down by N1.20 to quote at N24.30 per share versus the preceding session’s N25.50 per share, and Central Securities Clearing System (CSCS) Plc weakened to by 69 Kobo to N75.41 per unit from N76.10 per unit.
The volume of trades yesterday significantly improved by 71.5 per cent to 527,221 units from Tuesday’s 307,363 units, as the value of transactions soared by 49.9 per cent to N64.2 million from the preceding session’s N49.9 million, and the number of deals surged by 9.5 per cent to 46 deals from 42 deals.
When trading activities ended for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 64.6 million units exchanged for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
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