{

“title”: “How to Report Crypto Income in Nigeria: A Complete 2024 Guide”,
“content”: “

Understanding Crypto Taxation in Nigeria

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With Nigeria ranking among Africa’s top cryptocurrency markets, understanding how to report crypto income is crucial for compliance. The Federal Inland Revenue Service (FIRS) classifies cryptocurrency earnings as taxable income under the Capital Gains Tax Act. Whether you’re trading Bitcoin, Ethereum, or altcoins, profits from sales, mining, staking, or airdrops must be declared to avoid penalties. This guide breaks down Nigeria’s crypto tax requirements into actionable steps.

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Step-by-Step Guide to Reporting Crypto Income

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1. Calculate Your Gains: Subtract your purchase cost (including transaction fees) from your selling price for each crypto transaction during the tax year.

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2. Determine Taxable Income: Combine all gains from trades, mining rewards, staking yields, and NFT sales. Losses can offset gains but must be documented.

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3. Obtain a Tax Identification Number (TIN): Register with FIRS if you don’t have one. This is mandatory for filing.

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4. File Capital Gains Tax Returns: Submit Form CG T1 through the FIRS TaxPro-Max portal before the annual deadline (typically March 31st).

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5. Pay Your Tax: The current Capital Gains Tax rate is 10% of your net crypto profits. Payment is made via the same portal.

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Documents Required for Reporting

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• Transaction history from all exchanges (Binance, Luno, etc.)

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• Records of wallet addresses used

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• Proof of initial crypto purchases (bank statements/receipts)

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• TIN verification document

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• Screenshots of mining/staking rewards

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Deadlines and Penalties for Non-Compliance

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All crypto income must be reported annually by March 31st for the previous tax year. Failure to comply results in:n

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• 5% monthly interest on unpaid taxes

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• Possible fines up to ₦50,000 for false declarations

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• Prosecution for tax evasion under Section 41 of FIRS Establishment Act

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Note: FIRS now collaborates with blockchain analytics firms to trace high-volume traders.

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Tips for Keeping Accurate Crypto Records

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1. Use portfolio trackers like CoinTracker or Koinly for automated profit/loss reports

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2. Download monthly exchange statements in CSV format

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3. Separate personal and trading wallets

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4. Store receipts for hardware wallets and mining equipment (deductible expenses)

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5. Document fair market values in Naira at transaction time

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Frequently Asked Questions (FAQ)

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Q: Do I pay tax if I hold crypto without selling?
nA: No. Tax applies only when you dispose of