Nigeria’s plan to begin taxing cryptocurrency transactions from January 2026 may unintentionally drive traders toward unregulated peer-to-peer (P2P) markets, industry stakeholders have cautioned.

Under the Nigeria Tax Administration Act (NTAA), all crypto activities including trading, transfers, mining and staking income will be taxable. Licensed exchanges will be required to implement strict KYC/AML checks, store user data for seven years, and report large transactions to authorities. Non-compliance could attract fines of up to ₦10 million in the first month.

However, stakeholders say these rules are arriving too quickly amid slow licensing progress. Only two exchanges currently hold provisional approval, leaving most operators uncertain about compliance requirements.

Industry groups warn that high costs, strong identification demands, and the threat of penalties may push retail traders toward P2P platforms, where transactions are harder to track and remain largely outside regulatory oversight.

They fear the shift could weaken Nigeria’s formal crypto market, reduce transparency, and limit potential government revenue. Many are urging regulators to streamline licensing and phase in the tax more gradually to avoid driving activity underground. Visit www.jocomms.com for more news.