The Nigerian government has introduced a significant shift in cryptocurrency oversight by enforcing identity-based reporting requirements under the Nigeria Tax Administration Act (NTAA) 2025. Beginning January 1, 2026, all Virtual Asset Service Providers (VASPs) operating within Nigeria will be obligated to report customer and transactional data to the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC).
Nigeria’s Step Towards Enhanced Crypto Oversight
This framework aligns with the OECD’s Crypto-Asset Reporting Framework (CARF), which empowers member countries to combat tax evasion by enabling cross-border information sharing. Nigeria’s integration of Tax Identification Numbers (TIN) and National Identification Numbers (NIN) into cryptocurrency reporting represents a major leap in its ability to track digital transactions back to individuals.
Under the system, VASPs are required to collect and submit comprehensive details, including customer identities, contact information, tax IDs, and NIN where applicable. With this approach, authorities can bypass the need for costly blockchain surveillance tools, ensuring streamlined compliance and enforcement.
How It Works
The government mandates that monthly filings submitted by exchanges include key data such as transaction types, the value of assets traded, and the identities of customers and counterparties. Furthermore, exchanges must flag suspicious or abnormally large transactions, reporting such activities to both the NRS and the Nigerian Financial Intelligence Unit (NFIU).
Failure to comply with these regulations can result in steep penalties, including fines starting at ₦10 million ($7,014) for the first month of non-compliance. Persistent violations could lead to the suspension or revocation of licenses by the SEC.
A Revenue Boost Amid Economic Strain
With over $92.1 billion in digital asset transactions processed between July 2024 and June 2025, Nigeria sees cryptocurrency as a key revenue frontier. As oil revenues decline and the country’s tax-to-GDP ratio remains one of the lowest in Africa, the government aims to elevate its tax-to-GDP ratio from under 10% to 18% by 2027.
This new approach to taxing cryptocurrency aligns with global best practices, placing Nigeria among other nations like the United Kingdom that have instituted robust crypto reporting systems.
Considerations for Crypto Investors
For crypto users in Nigeria, these regulations emphasize the importance of compliance to avoid penalties. Working with platforms that prioritize transparency and reporting obligations will become crucial. Popular exchanges like Coinbase may offer enhanced systems and tools to help users stay compliant with local tax laws. Explore Coinbase here to stay ahead of Nigeria’s crypto regulatory changes.
Looking Ahead
As Nigeria forges ahead with its ambitious cryptocurrency tax framework, it sets a strong precedent for other countries in Africa and beyond. By harmonizing its regulations with the global standard, the nation positions itself as a leader in digital financial governance. For both investors and businesses, staying informed and adapting to these changes will be key to thriving in Nigeria’s evolving digital economy.
