Nigeria’s FIRS Reportedly Profiling Startups Paying Salaries in Crypto

In early August, the officials from Nigerians Government and finance managers described Federal Inland Revenue Service (FIRS) interest in crypto-denominated payrolls.

These posts part advisory, part cautionary tale say that FIRS appears to be profiling startups and scale ups that compensate remote staff in Bitcoin or stablecoins. If you are South African citizen and availing SASSA grant, then you can check the payments from SASSA Status Check page of our website. While FIRS has not publicly confirmed an audit sweep, practitioners warn the groundwork is being laid.

Why Crypto Payroll Draws Attention

Crypto payrolls complicate PAYE withholding, exchange-rate timing, and the classification of benefits vs. salary. Companies paying in tokens must still compute PAYE on an NGN equivalent at the date of payment and remit accordingly. Without careful documentation, authorities may argue that under-withholding occurred, creating interest and penalties.

Spot Rate and Timing

The core challenge is selecting a reliable spot rate at the moment of payment and proving it with screenshots, price feeds, and wallets’ TXIDs

Allowances vs. Salaries

If teams receive part of their compensation as a “token allowance,” the line between taxable compensation and expense reimbursement blurs. FIRS will likely push a conservative position: treat most token transfers as taxable salary unless rigorously substantiated.

Contractors vs. Employees

Labeling remote contributors as “contractors” does not automatically remove PAYE obligations. Substance (control, regularity, exclusivity) will prevail over form.

Compliance Playbook for Startups

• Maintain a payroll pack for each cycle: rate source, TXIDs, approvals, and NGN conversions.
• Consider gross-up policies to avoid accidental under-withholding.
• Ensure contracts specify tax treatment and documentation responsibilities.
• Engage auditors early to validate withholding calculations and employee vs. contractor assessments.

The Road Ahead

Even if no headline-grabbing audits occur, expect targeted information requests to test the waters. Startups that get their documentation house in order now will weather any formal review with minimal disruption.