Nigeria enforces identity-linked crypto oversight under new tax law
Nigeria has officially begun enforcing identity-based oversight of cryptocurrency activity, introducing a new regime that ties virtual asset transactions to individual taxpayers under the Nigeria Tax Administration Act (NTAA) 2025.
As of January 1, 2026, Virtual Asset Service Providers (VASPs) operating in Nigeria are required to report detailed customer and transaction information to the Nigeria Revenue Service (NRS), as well as the Securities and Exchange Commission (SEC).
The NTAA’s reporting framework aligns closely with the OECD’s Crypto-Asset Reporting Framework (CARF), which came into force on January 1, 2026.
Under CARF, member jurisdictions gain the ability to collect and share information on digital asset transactions across borders, helping to combat tax evasion.
By integrating identity systems like TIN and NIN into its reporting pipeline, Nigeria now joins countries such as the United Kingdom, where crypto service providers are already required to gather and share tax-linked user data.
How will Nigeria track crypto transactions?
Central to this framework is the use of the Tax Identification Number (TIN) and the National Identification Number (NIN), two key tools now being deployed to trace crypto activity back to named individuals.
The TIN is assigned to individuals and businesses by the NRS and the Joint Revenue Board, serving as the primary marker for compliance and enforcement within Nigeria’s tax system.
Meanwhile, the NIN anchors each citizen’s identity in the national biometric database, containing facial and fingerprint data.
By mandating that all VASPs collect and submit both identifiers, Nigeria has created a system capable of mapping digital transactions to real-world tax records, sidestepping the need for complex blockchain surveillance software.
Authorities can now request user data and transaction histories without prior notice, closing enforcement gaps that had previously allowed crypto profits to go untaxed.
Under the NTAA’s provisions, monthly filings from exchanges must include key details about the service provided, the type and value of assets transacted, and the full identities of both the customer and any counterparties involved.
These include names, contact information, tax IDs, and, when applicable, the NIN.
Additionally, VASPs must flag unusually large or suspicious transactions and share those alerts with both tax authorities and the Nigerian Financial Intelligence Unit (NFIU).
Crypto exchanges are also expected to retain customer records, identification data, and transaction histories for no less than seven years from the date of the last activity.
Failure to meet reporting requirements may trigger a ₦10 million ($7,014) fine in the first month, with recurring fines for each subsequent month of non-compliance.
The SEC has also been empowered to suspend or revoke licences for sustained violations.
Crypto tax to support the Nigerian economy
According to official estimates, Nigeria processed over $92.1 billion in digital asset transactions between July 2024 and June 2025.
While the figure reflects total value moved, not profits, the government sees even a small portion of it as a potentially significant source of tax revenue.
With oil revenues under pressure and a tax-to-GDP ratio among the lowest in Africa, authorities are looking to the digital economy as a new frontier for revenue collection.
The government hopes to raise its tax-to-GDP ratio to 18% by 2027, up from under 10% currently.
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