Nigeria has been appointed to impose taxes on encryption transactions, and to open the capabilities of the main revenue

In the latest development, Nigeria plans to update digital asset regulations to impose taxes on encryption transactions, according to Bloomberg a report. This change will bring all qualified encryption transactions to the organized exchanges under the tax system, which may generate significant revenues to the country.

A draft law is reviewed to create a framework to impose taxes on encryption transactions and the introduction of other taxes by Nigerian legislators, with plans to adopt this quarter. The National Assembly regained the 2025 session on January 14.

SEC plans to expand the encryption license

The Securities and Stock Exchange Authority approved that the trading of the cryptocurrency will achieve significant tax revenues, but it did not reveal the expected amount of revenues. It also plans to expand the scope of the currency exchange licenses, allowing residents to trade on the central stock exchanges organized for better monitoring and tax monitoring. This step is expected to enhance investor confidence.

In August 2024, SEC in Nigeria issued the first encryption license, which represents a step towards clearer regulations. By September 2024, the Supreme Education Council began garbage on unorganized exchanges, with only an exchange of exchanges at that time.

SEC updates the rules to market encryption

The SEC interest extends to the marketing of encryption as well. In December 2024, SEC has updated the rules to address the issue of influencers on social media that enhance unorganized encryption products. Now, apparent asset service providers must obtain approval before working with third -party promoters to promote their encryption products.

Interestingly, the young population of Nigeria and the cunning in technology adopted encryption as a means of protection from inflation and low value of the light. Since he took office in 2023, President Paula Teenopo pushed financial reforms to increase government revenues and reduce the deficit. It is worth noting that the Nigerian parliament recently agreed to a record number 54.99 trillion (36.4 billion dollars) for the 2025 spending plan, indicating the government’s need to increase revenue flows.

Nigeria initially took a difficult position on encryption, and prohibited financial institutions from working with encryption companies due to security concerns. However, the government lifted the ban in December 2023.

Now, Nigeria focuses on cultivating the encryption market, with its potential. The country’s move to provide taxes on encryption is an essential step towards organizing the area. With the continued high encryption dependence, the government is working to maintain a competitive advantage while ensuring a safe environment for investors.