Digital Asset Transactions In Nigeria: Tax Implications  

Introduction

The world like they say, has become a digital village. Processes have evolved following technological interventions; people have adapted to new ways of doing things. One of the ways people have changed how things are done is the advent of digital assets. Many years ago, assets were primarily held in the form of cash, securities, plant and equipment, land, buildings etc. Now, digital assets have brought a new dimension to asset classes and investments in general.

The Oxford Learners Dictionary defines a digital asset as an item of text or media in a digital format that includes the right to the asset. Investopedia also defines digital assets as anything that is created and stored digitally, is identifiable and discoverable and has or provides value. Some of these digital assets include cryptocurrencies, Non-Fungible Tokens (NFTs), Central Bank digital tokens, security tokens etc.