Between July 2023 and June 2024, Nigerians transacted more than US$59 billion in cryptocurrency. That’s not margin money or hobbyist speculation; that’s everyday people, creatives, traders, sending value through crypto because the economic climate pushed them to seek alternatives to a weak naira and inflation. In that same period, stablecoins alone accounted for a huge chunk of transactions, as Nigerians tried to protect savings and conduct business more efficiently.
These are not fringe numbers. They show a mass movement of wealth flowing through digital assets. So now that the government is stepping in with a proposed tax regime for digital asset profits, taxing individuals at 25%, more for corporations/Virtual Asset Service Providers (VASPs), this isn’t just fair. It’s logical. It’s overdue.
From Bans to Taxation; A Better Alternative
Just a few years ago, the Nigerian government was blocking banks from working with crypto platforms. Regulators floated ideas about banning certain social media, regulating content, and shutting down platforms that were seen as “foreign influences.” Creatives and crypto enthusiasts were largely in opposition, but the alternatives then were worse; we were faced with choosing between marginalisation, censorship, and uncertainty.
Taxing digital asset gains, NFTs, staking rewards, and airdrops, this new proposed law (for 2026) is a far more mature, manageable, and inclusive way of integrating Nigeria’s digital economy into formal policy. It signals that the government is recognising the stark reality that digital creators are earning, trading, and innovating. So instead of banning or ignoring this obviously booming and lucrative sector, the state now wants to partner, or at least collect its share.
Reluctance from Creators: What It Reveals
Despite how reasonable this law is, many creators are pushing back. I see it in forums, articles, and social media. The arguments sound like:
- “Why should I pay when the system is corrupt?”
- “How will I even know what to report?”
- “This will kill innovation.”
Some of that pushback is valid. Tax systems can be abused. Transparency is weak. Regulatory consistency is lacking. But some of the reluctance reveals something more troubling, a desire to enjoy all the upside without fulfilling the duties of citizenship.
If you have been earning from NFTs, crypto sales, staking, or content platforms, and you expect recognition, legitimacy, and protection under law, you can’t selectively “opt out” of obligations. It undermines the credibility of the digital economy. It signals that creators believe their work, done well, should be treated differently and unfairly compared to others who pay taxes in “traditional” businesses.
Enough Data to Show It’s Not Game Over
- Nigeria ranks #2 globally in overall crypto adoption and #1 in peer-to-peer (P2P) transaction volume according to multiple independent analyses.
- Creators are already earning real money, as we know Africa’s creator economy is worth US$3.08 billion in 2023, led heavily by women. It’s projected to grow to nearly US $17.84 billion by 2030.
- But many creators still make very little: over 60% of Nigerian digital creators report monthly earnings below ₦100,000 (just a few hundred dollars), which for most is barely enough to cover basic costs of data, electricity, and tools.
These stats show two things: first, there is serious value in the digital asset + creator space; second, much of it is informal, fragile, and unprotected because of regulation gaps. Taxation could be the line that pulls some of it into a legal, stable, formal economy.
Taxation Is Deserved, Not Punitive
Yes, taxing digital asset income will introduce friction. Creatives with “side hustle” incomes, those afraid of being targeted by opaque regulation, or those unsure how to comply, will feel squeezed. But we must consider the following:
- It’s not just about generating revenue. A tax regime can force improvements in infrastructure, legal clarity, and protection.
- It gives creators legal standing. If you pay taxes, you can demand services, advocate for your rights, and count on government oversight and enforcement.
- It levels the playing field. When some people avoid taxes, it distorts opportunity. Those who comply will be disadvantaged if the burden of non-compliance becomes “the norm.”
The Risks & Creative Responses Needed
To make this new law work, without hurting small creators, several things must happen:
- Clear guidelines, low barriers
Authorities must publish user-friendly guidelines for what counts as taxable, how to report, and perhaps even simplified thresholds so that very small earnings are exempt or taxed at lower rates. - Support structures
Creators need tools: apps, platforms, accountants familiar with crypto/NFT tax, and affordable legal advice. Otherwise, only big creators will benefit; small ones will drop off. - Transparency & accountability
If creatives are being taxed, the government must show that funds are being used for public goods, internet access, regulation protection, education, and energy. Without that, public trust will erode. - Recognition of informal income and volatility
Crypto and digital asset income is often volatile. There should be allowances for losses, “off” months, and expenses that offset tax liability.
Pay the Tax, Demand the Promise
This proposed tax regime shouldn’t be met with fear; it should be met with preparedness. For years, creatives and crypto-folk have operated in legal grey zones. The move to taxation is a signal that Nigeria’s digital economy is maturing, and you have a stake in that future.
If you are building with NFTs, trading crypto, or earning from online content, you have a choice: shrink back into shadowlands or step into legitimacy, take your place among those who build futures.
Yes, you must pay. Yes, it should be fair. Yes, it should be transparent. But refusing to pay because of fear or a sense of “the system doesn’t deserve it” ultimately harbours disempowerment, not protest.
This isn’t just about protecting personal incomes. It’s about claiming the digital economy’s promise for all Nigerians, creatives, traders, builders, whether you’re in Lagos, Port Harcourt, Kano, or anywhere.
If we treat this tax regime as an opportunity, rather than a threat, we’re not compromising; we’re consolidating. We’re not walking away from systems; rather, we’re shaping them into what they ought to be.
