Digital Assets Coalition Demands Suspension of Nigeria’s Virtual Asset Tax Guidelines

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The Digital Assets Coalition (DAC) has urged the Nigeria Revenue Service (NRS) to suspend its newly issued Guidelines on the Taxation of Virtual Assets. The coalition warned that key structural provisions risk driving digital asset activities offshore and disproportionately penalizing young tech earners.

Its Spokesperson, Mr Obinna Iwuno, stated this at a media conference organised by the coalition on Thursday in Lagos.

Iwuno said that although the coalition supported the taxation of digital assets, some provisions of the framework appeared to target the movement of funds rather than actual profits.

He said the group backed the taxation of gains from virtual assets, customer verification and stricter reporting requirements for operators.

Iwuno, however, noted that certain aspects of the guidelines imposed charges, irrespective of whether investors made profits or incurred losses.

“We support the taxation of virtual assets without qualification. Our concern is with a design choice that taxes the movement of money itself,” he said.

Iwuno raised concerns over the 1.5 per cent stamp duty on conversions between naira and digital assets, as well as the one per cent withholding tax deducted from the gross value of cryptocurrency sales.

He also faulted provisions requiring taxes to be remitted in digital tokens instead of naira.

According to him, Section 39 of the Nigeria Tax Administration Act, 2025, stipulates that taxes should be paid in recognised currency.

He said virtual assets were not legal tender in Nigeria and should not be treated as such for tax purposes.

“The levy affects remittances to students abroad, freelancers converting earnings that have already been subjected to income tax, and traders who incurred losses during the year.

“Instead of taxing profits, it imposes a…