Nigeria to tax crypto, digital assets 10% on capital gains: Experts react
On the eve of his departure from office, May 28, former President Muhammadu Buhari signed into law the Finance Act 2023.
The Act introduced a series of tax reforms aimed at modernizing the country’s fiscal framework. Among its provisions was the introduction of a 10% tax on gains from the disposal of digital assets, including cryptocurrencies.
The Finance Act 2023 is a comprehensive piece of legislation that seeks to enhance fiscal transparency, boost revenue generation and promote economic growth. Recognizing the increasing prominence of digital assets, such as cryptocurrencies, the Act aims to bring them into the purview of taxation.
By doing so, the Nigerian government seeks to create a level playing field and ensure that these assets contribute their fair share to the country’s development. This signifies Nigeria’s recognition of the growing influence and economic potential of digital assets while ensuring that the tax system keeps pace with the evolving financial landscape. Cointelegraph contacted the local crypto ecosystem to understand how the industry and the community accept the Act.
Local crypto expert Barnette Akomolafe, from the crypto exchange app M7pay spoke about how the taxation can be seen as a step towards recognizing cryptocurrencies as legitimate assets and integrating them into the existing financial and regulatory framework. This is considering the already existing ban previously reported by Cointelegraph, the Central Bank of Nigeria barred commercial banks from servicing crypto exchanges back in February 2021.
Another local crypto expert, who prefers to stay anonymous said that the taxation of cryptocurrencies can be challenging due to the unique nature of digital assets, such as valuation, tracking
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