Nigeria’s tax rules are bringing virtual assets further into the formal economy, alongside rapid growth in mobile money and instant payments across Africa. The changes place reporting duties on providers and set out how purchases made with digital assets should be taxed.
Virtual assets enter the tax system
Under the Nigerian Tax Administration Act, taxable businesses involved in exchanging, trading, holding or issuing virtual assets must register with the relevant tax authority as Virtual Asset Service Providers. Providers must also report transaction details, including the type and value of assets involved and customer identification information.
The law states that payments for goods and services made with virtual assets receive the same tax treatment as payments in conventional currency. Recipients must report those payments as income. The provisions bring digital asset activity within established tax procedures, although tax treatment alone does not resolve wider questions about how the assets may be used or regulated.
Payments infrastructure grows across Africa
The Nigerian rules are taking effect as digital payment networks expand across the continent. According to figures cited by Mastercard, 33 of Africa’s 54 countries have access to a national instant payment system. In 2025, approximately $1.4 trillion passed through African mobile money accounts in 92 billion transactions, based on GSMA data.
Mobile money has given people a way to make payments without relying heavily on bank branches. Instant payment systems could connect more of those services with banks, fintech companies and merchants. The extent of that connection will depend on local rules, technical capacity and whether providers can make their systems work together.
Mastercard estimates that around 400 million people in Africa remain unbanked. That leaves considerable room for wider access to financial services, but progress is likely to vary between countries. Connectivity, costs and confidence in digital services remain significant factors.
Nigeria’s tax provisions and the expansion of payment networks are distinct developments. Together, they show how digital finance is becoming a more established part of African economies: payment systems are handling growing volumes, while governments are defining how newer forms of financial activity fit within existing rules.
Newshub Editorial in Africa – 26 September 2026
Recent Comments