Nigeria’s new crypto tax policies may not drive the revenue it needs

As Nigeria grapples with economic challenges, the government is set to introduce a tax on cryptocurrency transactions. This move appears to be an effort to tap into the burgeoning digital economy and the informal sector.

In February, Nigeria sued Binance for unpaid taxes and introduced new cryptocurrency taxations in an effort to boost its faltering economy, but it may not have the intended effects.

As the 53rd largest economy in the world, Nigeria is predicted to enjoy the highest average GDP growth between 2010 and 2050, according to Citigroup. However, the country’s economic development has faltered in recent years, forcing the government to introduce significant tax reforms, a minimum wage framework, and more. 

The country claims pursuing unregulated crypto exchanges like Binance can provide more than $81 billion to refill its coffers, aided by introducing a tax on cryptocurrency transactions.

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