Nigeria has officially begun linking cryptocurrency transactions to individual taxpayers, marking a major shift in how the country regulates and monitors digital assets.
Under the newly enforced Nigeria Tax Administration Act 2025, crypto activity can now be traced directly to individuals using their Tax Identification Number (TIN) and National Identification Number (NIN). The move gives authorities clearer visibility into who is trading crypto, how much is being moved, and whether those transactions are being properly reported for tax purposes.
This policy aligns Nigeria with the global Crypto-Asset Reporting Framework (CARF) developed by the Organization for Economic Co-operation and Development, which officially came into force on January 1, 2026. The framework allows governments to collect, analyze, and share information on cross-border digital asset activity.
How the system works
Under the new law, all registered Virtual Asset Service Providers (VASPs) operating in Nigeria must collect both TIN and NIN details from customers. These identifiers are then reported alongside transaction data, allowing tax authorities to link crypto activity directly to real individuals and their tax records.
A TIN is issued by Nigeria’s tax authorities to track individuals and businesses for compliance and enforcement. The NIN, meanwhile, connects users to biometric information such as fingerprints and facial data stored in the National Identity Database.
By relying on these identifiers, Nigeria can monitor crypto activity without deploying expensive blockchain surveillance systems, instead using existing national databases.
Expanded reporting obligations for exchanges
Crypto exchanges are now required to submit detailed transaction filings when customers trade digital assets. These reports must include:
- The type of virtual asset service provided
- Transaction dates and asset values
- Total sales amounts
- Customer information such as name, address, phone number, email, TIN, and NIN (where applicable)
Authorities also have the power to request additional customer or transaction data from exchanges at any time, without prior notice.
On top of that, exchanges must proactively flag and report large or suspicious transactions to both tax authorities and the Nigerian Financial Intelligence Unit. Know-your-customer records and transaction data must be retained for at least seven years after a customer’s last activity.
Penalties for non-compliance
Exchanges that fail to comply face steep penalties. Violations can result in fines of up to ₦10 million (around $7,000) in the first month of default, followed by ₦1 million (about $700) for every additional month of non-compliance. Persistent breaches could also lead to license suspension or revocation.
A step toward formalizing Nigeria’s crypto market
Nigeria is one of the world’s most active crypto markets, processing an estimated $92.1 billion in digital assets between July 2024 and June 2025. Even modest taxation of that activity could generate significant revenue for a country aiming to reduce its reliance on oil exports.
The government says the new framework is designed to curb tax evasion, formalize the crypto sector, and improve Nigeria’s tax-to-GDP ratio over time.
The move builds on earlier regulatory steps. In 2025, cryptocurrencies were officially classified as securities under the Investments and Securities Act, bringing them under the authority of the Nigerian Securities and Exchange Commission.
Together, these measures signal a clear shift: crypto in Nigeria is no longer operating in a regulatory gray area—it is now firmly within the country’s tax and compliance system.
