From 2026, dodging taxes in Nigeria could cost crypto startups their licences — and ₦10m
- Nigeria's new tax laws impose an initial penalty of ₦10 million for VASPs failing to comply within the first month.
- The Securities and Exchange Commission (SEC) can suspend or revoke licenses of non-compliant VASPs.
- The Nigeria Tax Administration Act, 2025 (NTAA) aims to boost the country's tax-to-GDP ratio from under 10% to 18% by 2027.
The introduction of stringent tax laws for VASPs in Nigeria reflects the government's attempt to regulate a rapidly growing sector. However, the high compliance costs and penalties may deter innovation and investment in the crypto space, potentially stifling economic growth. A balanced approach that fosters growth while ensuring compliance is essential for the sustainable development of Nigeria's digital economy.
