Nigeria to Lift Ban on Crypto Trading Soon to Boost Revenue

According to Bloomberg, the bill outlines a framework for taxing crypto transactions and introducing other levies.

The bill is currently before lawmakers and is expected to be adopted this quarter.

“[This] will ensure that all eligible transactions on regulated exchanges are brought into the formal tax net,” the agency said.

It also “acknowledges the substantial amount of tax revenue that will accrue from cryptocurrency transactions,” the SEC added.

This is coming at a time that Nigerians can’t actively trade cryptocurrencies via banks without repercussions, so many opt for Peer-to-Peer (P2P) trading.

Former governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, enforced a ban on crypto trading and his successor, Mr Yemi Cardoso, has followed in the path— blaming their activities for the weakening of the Naira.

Despite these restrictions, Nigerians continue to use cryptocurrencies daily which adoption as high as top 5 globally.

Cryptocurrencies have helped Nigerians to sidestepped double-figure inflation and depreciation of the Naira against the Dollar since devaluation was carried out in June 2023.

The SEC is also looking to extend the scope of crypto licensing, including issuing permits that will enable residents to trade in formal centralized exchanges where transactions can be monitored and taxed, the regulator said.

“We anticipate gradual traction toward centralized exchanges, because they will provide greater protections and comfort for investors,” the SEC said.

Nigeria is exploring all avenues to raise more revenue and ease borrowing in the 2025 budget.

Last week, the National Assembly approved a N54.99 trillion budget, the highest ever for the country but analysts note that the country will struggle to fund it without significant increase in government revenue.