Nigeria is taking a major step toward tightening oversight of its fast-growing crypto market — and tax compliance is at the center of it. Under the Nigeria Tax Administration Act 2025 (NTAA), authorities have begun linking cryptocurrency transactions directly to individuals using their Tax Identification Numbers (TINs) and National Identification Numbers (NINs).
The move marks a shift from anonymous trading toward a system where crypto activity can be associated with real identities and tax records. It also places Nigeria among countries adopting the Organization for Economic Co-operation and Development’s (OECD) new Crypto-Asset Reporting Framework, which became effective globally on January 1, 2026. That framework is designed to help governments collect, analyze, and share information on cross-border digital asset activity.
How the tracking system works
Every Nigerian individual and business is issued a TIN by the Nigeria Revenue Service and Joint Revenue Board. It is used for tax administration and enforcement. The NIN, meanwhile, is the national digital ID tied to biometric data including fingerprints and facial records. Under the NTAA, Virtual Asset Service Providers (VASPs) — such as crypto exchanges — must collect both identifiers from customers and link them to transaction records.
Instead of relying primarily on external blockchain-tracking tools, the government will now receive information straight from exchanges. VASPs are required to file comprehensive reports covering the type of service provided, transaction dates, the value of assets exchanged, and total sales amounts. Basic customer details — name, address, phone number, email, tax ID, and NIN where applicable — must also be submitted.
Authorities reserve the right to request additional information at any time, without advance notice.
Stricter reporting and penalties for noncompliance
The law also pushes exchanges to monitor and flag unusual or large crypto transactions. These must be reported to both tax authorities and the Nigerian Financial Intelligence Unit. Customer identification and transaction data must be stored for at least seven years after the last activity, reinforcing long-term traceability.
Failure to comply doesn’t come cheap. Exchanges could face penalties of up to ₦10 million (around $7,014) for the first month of default and ₦1 million (around $702) for each additional month. Suspension or loss of operating licenses is also on the table.
A rapidly growing market under formal rules
Nigeria is not targeting a small niche sector. Between July 2024 and June 2025, the country’s crypto market handled an estimated $92.1 billion worth of digital assets, making it one of the world’s most active hubs. Bringing just a portion of that activity into the tax net could significantly boost government revenue at a time when the country is working to diversify beyond oil income.
The new tracking approach is part of a broader effort to formalize the crypto sector, reduce tax evasion, and lift Nigeria’s tax-to-GDP ratio. In recent years, lawmakers have introduced legislation to bring digital assets squarely within existing financial rules. Cryptocurrencies were officially classified as securities under the Investments and Securities Act signed in April 2025, giving the Nigerian Securities and Exchange Commission direct regulatory authority over the sector.
With the NTAA now in motion, Nigeria is signaling that its booming crypto ecosystem will operate under closer scrutiny — not outside the tax system.
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