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
The Nigeria Customs Service (NCS) is seeking a reduction in import duty exemptions, which rose to N34 trillion, limiting its ability to increase its revenue generation threshold.
The Comptroller-General of the Customs Service, Mr Adewale Adeniyi, disclosed that the value of import duty exemption certificate approvals increased to that level in 2025, describing the policy as one of the major factors restricting its revenue generation.
At an investigative session of the Senate Committee on Finance with revenue-generating agencies in Abuja on Monday, Mr Adeniyi explained that government fiscal policies have continued to impact the revenue-generating capacity of the Customs Service, both positively and negatively.
“The NCS would have generated significantly higher revenue over the years if not for government-approved import duty waivers and other external factors affecting collections,” he said.
He added that the Import Duty Exemption Certificate scheme, introduced in March 2020, accounted for about N34 trillion in approvals in 2025, with nearly 60 per cent covering duty-free importation of military hardware due to Nigeria’s prevailing security challenges.
Other government-backed duty waivers, he noted, covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes.
While acknowledging the impact of the waivers on Customs revenue, Mr Adeniyi argued that fiscal policy should not be assessed solely on the basis of revenue generation but also on its broader economic and social objectives.
He, however, urged the federal government to establish stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
The committee also expressed displeasure over the absence of several heads of government agencies invited to the hearing, including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and the Federal Medical Centre (FMC), Jabi.
The Chairman of the Senate Committee on Finance, Mr Sani Musa, warned that the affected chief executives must appear at the committee’s next sitting or face severe sanctions under the Senate’s rules.
In the competitive world of online trading, finding a trading brokerage partner that balances reliability, technological innovation, and accessible conditions is essential. Headway broker has emerged as a significant player, currently serving over 4 million users globally.
In this article, we take a detailed look at what makes this broker for trading a notable option for both novice and experienced traders.
Headway Regulatory Foundation and Safety
Safety is the cornerstone of any trading relationship. Headway broker operates under the regulation and licensing of the Financial Sector Conduct Authority (FSCA). This regulatory oversight ensures that the broker adheres to strictly defined standards for transparency and operational conduct, providing traders with an added layer of security and confidence when managing their portfolios.
Trading Platforms and Instruments
Efficiency in trading Forex and other markets is driven by the tools at your disposal. Headway provides a robust technological trading ecosystem:
Industry-Standard Platforms: The broker fully supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), the most widely used platforms for technical analysis and automated trading.
Proprietary Mobile App: For traders who prioritize mobility, Headway offers its own custom-built trading app. It is readily available for download on both Google Play and the App Store, allowing for seamless account management and trading on the go.
Diverse Market Access: Traders have a wide range of opportunities with access to over 300 trading instruments, ensuring plenty of choice for different strategies and asset classes.
Trading Account Types Offered by Headway
Headway broker understands that every trader enters the market with a different level of experience:
Three Account Tiers: To ensure inclusivity, the broker offers three distinct types of accounts (Cent, Standard and Pro), tailored to suit different levels of expertise and capital requirements.
Demo Account: For those looking to refine their skills without financial risk, Headway provides a comprehensive demo trading account. This is the perfect environment to practice strategies, understand how the platform works, and gain confidence before transitioning to live trading.
Customer Support and Incentives
Headway supports its user base with comprehensive resources and financial incentives:
24/7 Technical Support: Market fluctuations happen at any time. Headway provides round-the-clock technical support for the traders, ensuring that help is always available whenever a question or issue arises.
150$ No Deposit Bonus: To help new traders get started, Headway offers a $150 no deposit bonus. This is an excellent way to test the broker’s execution speed and trading environment with zero initial risk.
IB Partnership Program: Beyond individual trading, Headway fosters growth through its Introducing Broker (IB) partnership program. This allows partners to build their business and earn commissions by referring new traders to the platform.
Conclusion
With its combination of FSCA regulation, a vast range of instruments, and modern platforms like MT4, MT5, and its own proprietary app, Headway FX broker provides a comprehensive environment for modern traders. Whether you are using the demo account to hone your skills or taking advantage of the 150 no deposit welcome bonus, this broker offers the stability and tools needed for your trading journey.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.40 per cent on Monday, July 13, buoyed by buying interest in 11 Plc, Central Securities Clearing System (CSCS) Plc and UBN Property Plc, which offset the profit-taking in Food Concepts Plc, the parent company of Chicken Republic.
11 Plc gained N20.69 to end at N227.64 per share compared with last Friday’s price of N206.95 per share, CSCS Plc grew by N1.83 to N91.48 per unit from N89.65 per unit, and UBN Property Plc added 1 Kobo to sell at N1.81 per share versus N1.80 per share.
On the flip side, Food Concepts Plc depreciated by 24 Kobo to close at N2.45 per unit, in contrast to the preceding session’s N2.69 per unit.
As a result, the market capitalisation increased by N9.2 billion to N2.587 trillion from N2.578 trillion, and the NASD Security Index (NSI) improved by 15.33 points to 4,311.67 points from 4,296.34 points.
Yesterday, the volume of securities traded by investors surged by 615.9 per cent to 9.1 million units from the previous 1.3 million units, and the value of securities rose by 997.1 per cent to N320.4 million from the preceding session’s N29.2 million, while the number of deals decreased by 12.5 per cent to 28 deals from last Friday’s 32 deals.
At the close of trades, 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 73.9 million units exchanged for N5.2 billion.
GNI Plc also closed 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.
