The Digital Assets Coalition has formally requested that the Federal Government revise its recent guidelines regarding virtual asset taxation. The group warns that the current structure threatens Nigeria’s $92 billion digital market and could jeopardize the nation’s status as a leader in the Sub-Saharan African cryptocurrency sector.
During a Lagos press conference on Thursday, the coalition presented a position paper titled, “Tax the Profit, Not the Movement of Money.” While the organization favors taxing virtual assets, they argue that the existing framework unfairly targets fund transfers instead of genuine investment gains. Spokesperson Obinna Iwuno noted that the current approach acts as a barrier to participation rather than a tax on profit, potentially stifling innovation and pushing users toward offshore platforms.
The coalition highlighted specific concerns regarding the 1.5 per cent stamp duty on naira-to-crypto conversions and a one per cent withholding tax applied to sales, even when investors experience financial losses. Furthermore, they criticized the policy of requiring tax remittances in digital tokens instead of local currency. Iwuno explained that these rules could disproportionately impact young Nigerians who rely on the market for remittances and freelance income.
Citing global examples where similar transaction taxes harmed local markets—such as India and Kenya—the group called on the Nigeria Revenue Service to pause the implementation of these guidelines. They suggested a shift toward a profit-based tax model, mandatory national currency payments, and broader consultations with industry stakeholders to foster a more sustainable economic environment.
