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FG lifts ban on Cryptocurrency, introduces taxation

Published

3 years ago

June 8, 2023

Advocate News Nigeria

FG cracks down on illegal crypto traders

Cryptocurrencies

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Federal government of Nigeria is making plans to tax cryptocurrencies in the new Finance Act. One of the provisions of the 2023 Finance Act is taxing proceeds from cryptos and other digital assets.

Former President Muhammadu Buhari on May 28, 2023 signed the 2023 Finance Act into law before he exited office.

The Finance Act introduced a series of tax reforms to modernize Nigeria’s fiscal framework.

One of the provisions in the Act is the introduction of a 10% tax on proceeds from the disposal of digital assets, including cryptocurrencies.

The move means Nigeria recognizes digital assets’ increasing influence and economic prospects while ensuring the tax system aligns with the changing landscape.

The 2023 Finance Act is comprehensive legislation seeking to enhance fiscal transparency, boost revenue generation, and promote economic growth.

According to report the Act seeks to rein in revenue from recognized digital assets like cryptocurrencies and bring them into the purview of taxation.

Also, the Nigerian government wants to create a level playing ground to ensure that they contribute to Nigeria’s revenue generation and development.

The move demonstrates Nigeria’s readiness to adapt to its fiscal policies, realities and accelerate technological advancements and the changing landscape of financial transactions.

The determination to impose a tax on the proceeds of digital assets shows the government’s recognition of the economic promise of cryptos. There has been remarkable growth in the global cryptocurrency industry in recent years.

By taxing proceeds from digital assets, the Nigerian government seeks to capture a part of the economic value made from these transactions, contributing to the country’s overall revenue drive.

Other Taxes In The 2023 Finance Act

The Federal government introduce a step toward broadening Nigeria’s tax base. Other taxes on the 2023 Finance Act are the personal income tax act, the Tertiary Education Fund tax, Customs, Excise Tariff, and Excise duties for the fiscal year.

TheCable reports that before the 2023 Finance Act, the Nigerian government had published the fiscal policy measures, which outline the rates of taxes and excise duties for the fiscal year.

The new measures consisted of supplementary protection measures, revised excise duty rates, and green taxes and were approved by Buhari.

The former Minister of Finance, Zainab Ahmed, had said that the Nigerian government was planning to tax cryptos and other digital assets. She said the plan aligns with the government’s policy initiatives of boosting cross-border and international taxation and growing e-commerce with emerging markets.

On May 2023, The federal government approved the national blockchain policy, allowing blockchain technology to lift the ban on cryptocurrency in Nigeria.

FG’s journey to cryptocurrency acceptance

Bitcoin and other cryptocurrencies have long been a topic of debate and regulatory scrutiny worldwide, and Nigeria has been no exception.

In February 2021, the Central Bank of Nigeria (CBN) issued a circular to deposit money banks (DMBs), non-bank financial institutions (NBFIs), and other financial institutions (OFIs) to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

The CBN further warned local financial institutions against dealing in crypto-assets or facilitating payments for crypto exchanges.

The apex bank cited concerns over money laundering, terrorism financing, cybercrime and the volatility of cryptocurrencies as reasons for the ban.

The directive received significant backlash from the Nigerian public and the cryptocurrency community, as many saw it as a hindrance to technological advancement and economic growth.

However, just two years later, the government has taken a surprising turn by introducing taxation on cryptocurrencies.

Here is a timeline of major events in the two-year period that shaped the evolution of Nigeria’s stance on cryptocurrencies.

February 5,2021: CBN directs banks to close accounts of persons or entities involved in cryptocurrency transactions within their systems.

February 9, 2021: CBN launches investigation into financial institutions offering services to cryptocurrency traders.

February 11, 2021: The senate invites the CBN, the Securities and Exchange Commission (SEC) to discuss opportunities and threats of cryptocurrency on Nigeria’s economy and security.

February 18, 2021: The International Monetary Fund (IMF) backs CBN, says cryptocurrencies may be used for illegal activities.

February 22, 2021: The SEC says there is a need to regulate cryptocurrencies.

February 26, 2021: Yemi Osinbajo, Vice President of Nigeria, calls for a regulatory framework for cryptocurrencies rather than an outright ban.

March 21, 2021: The CBN clarifies its position on the ban and states that individuals are not prohibited from buying and trading crypto, just not through any Nigerian bank or fintech.

April 15, 2021: SEC says discussion is ongoing with the CBN over the regulation of cryptocurrencies.

April 26, 2021: The Economic and Financial Crimes Commission (EFCC) warns Nigerians to be cautious before investing in Bitcoin.

July 22, 2021: The CBN announces plans to launch the “ eNaira”—a central bank digital currency (CBDC) — which is quite different from Bitcoin and other cryptocurrencies.

October 25,2021: Nigeria becomes first African nation to launch a digital currency — the “eNaira”.

April 7, 2022: CBN hits six banks with a N1.3 billion fine over alleged non-compliance with its regulation on accounts of cryptocurrency traders.

May 15, 2022: The SEC recognises digital assets as securities and issues regulations on exchange and custody of cryptocurrencies in the country.

Government Introduces Taxation On Cryptocurrency

The federal government surprised many by announcing its decision to tax cryptocurrencies.

The government said it recognized the growing adoption and economic significance of digital assets and aimed to harness their potential for revenue generation.

By doing so, Nigeria joins the league of jurisdictions currently taxing digital assets, including the United Kingdom, the United States of America, Australia, India, Kenya and South Africa.

December 2, 2022: Zainab Ahmed, minister of finance, budget and national planning, says there is a provision to tax cryptocurrency and other digital assets in the latest finance bill.

May 28, 2023: President Muhammadu Buhari signs the 2023 finance bill into law. The law introduces a 10 percent taxation of gains on the disposal of digital assets including cryptocurrency. The law is effective as of May 1, 2023.

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Nigeria records 8.51m terabytes of data use in first half of 2026

Published

3 weeks ago

August 27, 2026

Advocate News Nigeria

Nigerian Communications Commission

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Nigerians consumed a record 8.51 million terabytes of data in the first half of 2026, underscoring the country’s accelerating shift toward a digital-first economy.

Data from the Nigerian Communications Commission (NCC) confirmed this. Specifically, in January, consumption was 1.385 million terabytes; February, 1.260 million terabytes and March, 1.422 million terabytes.

In April, consumption was 1.414 million terabytes. It climbed to 1.504 million terabytes in May and 1.532 million terabytes in June.

In 2025 alone, Nigerians consumed over 13.2 million terabytes of data, a 35 per cent increase from 2024, reflecting how connectivity has become essential for daily life.

The surge in consumption was driven largely by the twin giants of the telecom sector, MTN Nigeria and Airtel Nigeria, whose half-year reports revealed data services have firmly overtaken voice as the primary revenue stream.

According to industry figures, average monthly data usage per subscriber rose sharply, reflecting the growing reliance on mobile broadband for work, entertainment, and commerce.

Streaming platforms, social media, fintech apps, and remote work tools have all contributed to the spike in demand.

MTN Nigeria reported that its 55.7 million active data subscribers consumed an average of 14.8 gigabytes per month, representing a 15.2 per cent increase year-on-year. Overall, MTN’s data traffic surged by 25.8 per cent across its network in the period.

This translated into a massive N1.70 trillion in data revenue, a 38.4 per cent jump compared to the same period in 2025. Data now accounts for more than half of MTN’s total service revenue, dwarfing its voice earnings of N993.5 billion, which grew at a modest 12 per cent.

Airtel Nigeria also posted strong numbers, recording N691 billion in data revenue ($507 million). While Airtel’s voice services contributed to a combined N1.42 trillion in voice earnings alongside MTN, the clear trend is that data has become the dominant driver of growth.

Together, MTN and Airtel generated N2.4 trillion from data services in H1 2026, cementing their role as the backbone of Nigeria’s digital economy.

MTN invested N620.5 billion in capital expenditure during the period, focusing on expanding 4G coverage, scaling 5G rollout, and strengthening fibre infrastructure. The company’s aggressive push into next-generation networks is aimed at meeting the surging demand for high-speed connectivity.

Airtel, meanwhile, faced challenges with fibre cuts and vandalism, forcing reinvestments to stabilize its network. The operator is blending 5G expansion with satellite partnerships to extend coverage into rural and semi-urban areas, where demand for reliable Internet is rising.

Despite these investments, many consumers continue to express dissatisfaction with service quality. Complaints of slow speeds, unstable connections, and high costs remain widespread, highlighting the gap between consumption growth and infrastructure capacity.

The NCC has repeatedly urged operators to deepen investments in fibre, towers, and spectrum to sustain the country’s digital transformation. Analysts note that the sector is undergoing a structural shift from voice-first to data-led growth, with internet connectivity now central to economic activity.

Industry experts predict that Nigeria’s data consumption will continue to rise exponentially as smartphone penetration increases and more services migrate online. The rollout of 5G is expected to further accelerate usage, enabling innovations in fintech, e-commerce, healthtech, and entertainment.

The consumption of 8.51 million terabytes in H1 2026 marks a historic high for Nigeria’s telecom industry. It reflects not only the appetite of a digitally hungry population but also the broader transformation of the economy.

With MTN and Airtel leading the charge, the challenge now lies in improving service quality, expanding infrastructure, and ensuring affordable access for millions of Nigerians. As data becomes the lifeblood of communication and commerce, the telecom sector’s ability to keep pace with demand will determine how effectively Nigeria harnesses the opportunities of the digital age.

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Business

AFRAA welcomes Enugu Air, strengthens Nigeria’s Domestic Aviation growth

Published

3 weeks ago

August 20, 2026

Advocate News Nigeria

Enugu Air

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The African Airlines Association (AFRAA) has admitted Enugu Air as Member, extending the Association’s membership base in Nigeria’s fast-growing domestic aviation market and reaffirming AFRAA’s commitment to supporting the continued development of African carriers across the continent.

This was announced by AFRAA in Nairobi on Wednesday, making Enugu Air the 50th Member of the association, joining the AFRAA airline fraternity, collectively representing more than 85 per cent of total international traffic carried by African airlines.

Speaking on the occasion, AFRAA Secretary General, Mr. Abdérahmane Berthé, said, “We are delighted to welcome Enugu Air into the AFRAA fraternity.

“As a state-backed carrier serving Nigeria’s rapidly expanding domestic market, Enugu Air represents the kind of homegrown investment that is vital to building resilient air connectivity across our continent.

“We look forward to supporting the airline through the IOSA certification process and to its continued growth within the AFRAA membership, as we work together to advance the cause of unified African skies.”

Reacting to the development, the CEO of Enugu, Capt Tolu Ita, described the admission into AFRAA as a major milestone in the airline’s short history.

“We are honoured to join the AFRAA fraternity. This membership underscores Enugu Air’s commitment to safe, reliable, and affordable air travel for Nigerians while contributing to the vision of a unified African aviation market.

“We look forward to collaborating with fellow AFRAA members and leveraging the association’s support as we grow our network and pursue IOSA certification,” Tolu stated.

Founded on July 7, 2025, Enugu Air commenced commercial operations with a fleet of Embraer E170/E190/E195 aircraft.

The airline, which has its headquarters in Enugu and operates from the Akanu Ibiam International Airport, currently serves nine domestic destinations including Enugu, Abuja, Lagos, Port Harcourt, Kano and Benin City.

As part of the airline’s growth strategy, Enugu Air plans to expand further across Nigeria and, in subsequent phases, to launch regional and international routes across Africa, Europe, and beyond.

As part of its growth strategy, Enugu Air plans to expand further across Nigeria and, in subsequent phases, to launch regional and international routes across Africa, Europe, and beyond.

The admission of Enugu Air aligns with AFRAA’s strategic priorities and strengthens the voice of the association. Nigeria, as Africa’s most populous nation and one of its fastest-growing economies, remains central to the realization of a truly integrated African aviation market.

Meanwhile, founded in Accra, Ghana, in April 1968, and headquartered in Nairobi, Kenya, AFRAA’s mission is to promote, serve African Airlines and champion Africa’s aviation industry.

The association envisions a sustainable, interconnected and affordable air transport industry in Africa, where African airlines become key players and drivers of African economic development.

AFRAA membership cuts across the entire continent and includes all the major intercontinental African operators.

The association’s members represent over 85% of total international traffic carried by African airlines.

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Business

NRS releases guidelines on Cryptocurrency, virtual assets taxation

Published

1 month ago

August 3, 2026

Advocate News Nigeria

Chairman of the Nigeria Revenue Service, Zacch Adedeji

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The Nigeria Revenue Service has issued comprehensive guidelines on the taxation of virtual assets, providing a regulatory framework for the taxation of cryptocurrency and other digital asset transactions in line with the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.

The new guidelines are aimed at taxpayers, Virtual Asset Service Providers, Peer-to-Peer marketplace operators, tax practitioners and individuals engaged in virtual asset activities, as the Federal Government intensifies efforts to expand the country’s tax base and strengthen compliance within the rapidly growing digital economy.

In a public notice issued on Monday, the NRS said it had formally released the Guidelines on the Taxation of Virtual Assets.

According to the agency, the document establishes a clear administrative framework governing tax obligations for virtual asset transactions in Nigeria.

“The Nigeria Revenue Service (NRS) wishes to inform taxpayers, Virtual Asset Service Providers (VASPs), Peer-to-Peer (P2P) marketplace operators, tax practitioners, and all persons engaged in virtual asset activities that it has issued the Guidelines on the Taxation of Virtual Assets.

“The Guidelines provide a clear administrative framework for the taxation of virtual assets in Nigeria. They set out the applicable tax obligations including registration, reporting and record-keeping obligations, valuation principles, and the tax treatment of virtual asset transactions in accordance with the provisions of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025.”

The NRS said the initiative forms part of broader reforms designed to improve certainty in tax administration as digital assets become increasingly integrated into the country’s financial system.

“The issuance of these Guidelines is part of the Service’s commitment to providing clarity, certainty, and consistency in the administration of Nigeria’s tax laws as they relate to the rapidly evolving virtual asset ecosystem. The Guidelines are intended to promote voluntary compliance, enhance transparency, and support the development of a fair and efficient tax framework for digital asset transactions.”

The agency urged all affected stakeholders to study the new provisions and ensure full compliance with their tax obligations.

“All affected taxpayers and stakeholders are encouraged to familiarise themselves with the provisions of the Guidelines and ensure full compliance with the applicable tax obligations.”

It added that the guidelines are available for download on its official website.

The release of the guidelines marks another step in Nigeria’s evolving regulatory approach to digital assets. In recent years, Nigerian authorities have moved from largely restricting cryptocurrency-related activities to establishing clearer legal and tax frameworks for the sector.

The guidelines also follow the enactment of the Nigeria Tax Act, 2025, and the Nigeria Tax Administration Act, 2025, which introduced sweeping reforms to the country’s tax system, including provisions covering emerging sectors such as virtual assets.

The reforms are expected to improve tax administration, increase government revenue and provide greater regulatory certainty for businesses and investors operating in Nigeria’s digital economy.