Nigeria has embarked on a decisive shift in how it oversees the country’s booming cryptocurrency sector by tying digital asset transactions directly to Tax Identification Numbers (TINs) and National Identification Numbers (NINs).
This move, now mandated under the Nigeria Tax Administration Act (NTAA) 2025 and effective January 1, 2026, aims to finally bring the often opaque world of crypto trading into clearer view for tax and regulatory authorities.
Once often outside the formal tax net, crypto transactions in Nigeria—which accounted for an estimated $92.1 billion in value between mid‑2024 and mid‑2025—will now be visible to tax officials without direct blockchain surveillance.
Key Takeaways
- Crypto exchanges and service providers in Nigeria must now link user transactions to Tax Identification Numbers (TINs) and, where applicable, National Identification Numbers (NINs).
- The new rules allow tax authorities to track crypto activity through identity and tax records without directly monitoring blockchain networks.
- Virtual Asset Service Providers are required to submit detailed monthly reports, retain customer data for at least seven years, and flag suspicious transactions.
- The framework closes enforcement gaps that previously limited compliance with Nigeria’s 10% tax on crypto profits introduced in 2022.
- Nigeria’s approach aligns with the OECD’s Crypto-Asset Reporting Framework, positioning the country within a global system for crypto tax transparency.
Identity Reporting Replaces Blockchain Monitoring
Under the new regulations, Virtual Asset Service Providers (VASPs), such as exchanges and custodial platforms, must now collect comprehensive identity information from all customers. Monthly reports submitted to the Federal Inland Revenue Service (FIRS) must include:
- Full name, residential address, contact details
- Tax Identification Number (TIN)
- National Identification Number (NIN) for individuals
- Transaction dates, asset types, and values
- Nature of services provided
- Details of counterparties where applicable
This requirement marks a departure from earlier policy approaches that struggled to link digital asset activity with individual taxpayers. By anchoring crypto transactions to identity records, authorities can now match crypto‑related earnings with declared income and tax filings without relying on costly on‑chain analytics.
A Broader Framework for Compliance and Enforcement
The NTAA 2025 also aligns Nigeria’s domestic policy with the Organization for Economic Co‑operation and Development’s (OECD) Crypto‑Asset Reporting Framework (CARF), which came into effect globally on January 1, 2026.
CARF standardizes the reporting of crypto transactions internationally, bolstering cross‑border transparency and helping curb tax evasion.
Beyond identity reporting, the law extends anti‑money laundering (AML) requirements:
- VASPs must flag and report large or suspicious transactions to both FIRS and the Nigerian Financial Intelligence Unit (NFIU).
- Customer and transaction records must be retained for a minimum of seven years.
- Tax authorities have the power to request additional data from service providers with or without notice.
These measures integrate crypto oversight into existing financial crime prevention frameworks, significantly broadening the reach of regulatory enforcement.
Filling Enforcement Gaps
Nigeria’s earlier attempt to tax crypto activity under the Finance Act 2022—which imposed a flat 10% tax on crypto profits—saw patchy compliance because authorities lacked a reliable way to identify taxpayers behind wallet addresses. The new TIN/NIN linkage is designed to close that enforcement gap.
The law’s enforcement comes with tangible penalties for non‑compliance. VASPs that fail to meet reporting obligations can face fines—commonly starting at ₦10 million (about $7,000) for the first month of default and ₦1 million for subsequent months—and risk suspension or revocation of their operating license under the Securities and Exchange Commission (SEC).
Impact on the Crypto Ecosystem
For crypto users in Nigeria, these developments will reshape how they interact with digital assets. Exchanges and other service providers will demand verified identity credentials before onboarding users, effectively ending anonymous crypto trading within the regulated sector.
Experts believe this could significantly increase Nigeria’s tax revenues by tapping into a previously elusive source of income.
At the same time, industry stakeholders warn that stricter compliance requirements and reporting burdens might raise operational costs for crypto platforms and reduce service availability.
Regional and Global Context
Nigeria’s policy mirrors trends in other major jurisdictions. In the United Kingdom, for instance, crypto asset providers already collect details such as names, dates of birth, and tax references for residents and TINs for non‑residents—advancing a similar goal of identity‑based reporting without blockchain monitoring.
By integrating with the OECD’s reporting standards, Nigeria signals its intent to participate in a global network of crypto tax transparency. This alignment is expected to foster greater accountability for cross‑border crypto flows, while helping the country benefit from a share of revenues tied to its large crypto market.
Looking Ahead
As enforcement of the NTAA 2025 and related frameworks unfolds through 2026, Nigeria’s crypto sector will enter a new phase of formalization. What was once a loosely regulated frontier now sits squarely within the ambit of national tax and identity systems—a development that could serve as a template for other emerging markets wrestling with similar challenges of crypto taxation and oversight.
