# Nigeria crypto coalition urges drop of transaction taxes, profit tax

**Published:** 2026-08-06T16:18:51.399Z  
**Topic:** Crypto Payments  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/b53dcf1a-6b4c-44c9-86a1-bcd60999dfe5

Nigeria Digital Assets Coalition pushes NRS to scrap 1.5% stamp duty and 1% withholding tax on crypto moves, favoring profit‑based tax to keep users on‑shore.

The Digital Assets Coalition (DAC) has formally asked Nigeria’s Revenue Service to abandon the newly proposed 1.5% stamp duty on every naira‑crypto conversion and the 1% withholding tax on crypto sales, arguing that taxing each transaction—whether profitable or not—will push users to offshore platforms and cut government revenue [1].

| At a glance | |
|---|---|
| Proposed stamp duty | 1.5% on every naira‑crypto conversion |
| Proposed withholding tax | 1% on total value of crypto sales |
| Guideline release date | August 3 (NRS) |
| Coalition’s preferred model | Tax profits only, not transaction volume |

## DAC’s objections to transaction‑based taxes  
The coalition’s position paper, *Tax the Profit, Not the Movement of Money*, says the 1.5% stamp duty and 1% withholding tax would apply even when investors incur losses or merely move funds, inflating costs far beyond typical exchange fees. It warns that ordinary Nigerians—families sending remittances, small importers, freelancers paid in stablecoins, and students earning modest crypto rewards—could face double taxation on already‑taxed income, eroding the sector’s appeal [1].

## International precedents and recommended reforms  
DAC points to India, Kenya and Turkey, where similar transaction taxes either failed to generate expected revenue or were later repealed after driving trading offshore. By contrast, the United Kingdom, South Africa and Brazil tax only the gains from crypto investments, a model DAC says would sustain revenue and keep activity within the formal economy. Its recommendations include postponing the guidelines, widening stakeholder consultations, removing transaction taxes, collecting taxes solely in naira, and preserving registration and reporting obligations for exchanges [1].

## What to watch  
- **Regulatory timeline:** Any official postponement or amendment to the August 3 guidelines.  
- **Tax policy shift:** Announcement of a profit‑based tax framework versus the current transaction taxes.  
- **User migration:** Changes in on‑shore exchange volumes that could indicate users moving to offshore platforms.  

The coalition’s push highlights a tension between revenue goals and the need to nurture Nigeria’s fast‑growing crypto ecosystem. Whether the NRS adopts a profit‑only tax model or proceeds with the transaction levies will shape the sector’s future compliance and its contribution to the national treasury.

## Sources
1. Legit.ng — [Crypto Tax: Digital Assets Coalition Urges FG to Drop Transaction Charges, Tax Profits Instead](https://www.legit.ng/business-economy/technology/1723588-crypto-tax-digital-assets-coalition-urges-fg-drop-transaction-charges-tax-profits-instead/)
2. Investopedia — [investopedia.com/cryptocurrency-news-5114163](https://www.investopedia.com/cryptocurrency-news-5114163)

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Cite as: TrendWatcher, "Nigeria crypto coalition urges drop of transaction taxes, profit tax", https://www.trendwatcher.in/article/b53dcf1a-6b4c-44c9-86a1-bcd60999dfe5