Nigeria’s New Tax Law Makes Crypto Transactions Traceable

Nigeria has enacted sweeping tax legislation that will fundamentally change how cryptocurrency transactions are monitored. The Nigerian Tax Administration Act (NTAA) 2025 requires crypto service providers to collect and report customers’ Tax Identification Numbers (TINs) and National Identification Numbers (NINs).

NIGERIA PASSES LAW LINKING CRYPTO TRANSACTIONS TO REAL IDENTITIES

– Nigeria has passed a new tax law that brings crypto activity into the formal tax system.

– The Nigeria Tax Administration Act (NTAA) 2025 requires crypto transactions to be tied to Tax Identification Numbers… pic.twitter.com/UgTuokRE1j

— BSCN (@BSCNews) January 13, 2026

This regulatory shift enables authorities to link digital asset transactions directly to real identities. The move positions Nigeria alongside international standards set by the Organization for Economic Co-operation and Development’s Crypto Asset Reporting Framework, which takes effect January 1, 2026.

Nigeria’s cryptocurrency market received an estimated $92.1 billion in value between July 2024 and June 2025. The country ranks among the largest crypto markets globally. Authorities aim to increase tax revenue as a share of GDP from less than 10% to 18% by 2027.

How Nigeria’s Identity Tracking Will Function

Under the new framework, virtual asset service providers must file monthly returns with tax authorities. These filings require detailed transaction information including dates, asset types, values, and complete customer identification data.

The TIN serves as a unique identifier issued jointly by the Nigerian Revenue Service and the Joint Tax Commission. It tracks individuals and businesses for tax administration and compliance purposes across the formal economic system.

Meanwhile, the NIN functions similarly to a social security number. It links personally identifiable information to biometric data including fingerprints and facial records stored in the National Identity Database.

For individual taxpayers, the TIN is generated directly from the NIN. This creates a unified tracking system that connects crypto activity to existing income declarations and tax records.

Tax authorities can now request supplementary information from crypto service providers with or without prior notice. Exchanges must maintain Know Your Customer records and retain transaction data for at least seven years.

Compliance Requirements and Reporting Standards

Virtual asset service providers face expanded compliance obligations under the legislation. Monthly reports must detail the nature of services provided, including exchanges, sales, transfers, and escrow arrangements.

Required customer information includes names, addresses, telephone numbers, and email addresses. Crypto transaction counterparties must also be identified with contact details and any additional relevant information.

Beyond standard tax filings, exchanges must report large or suspicious transactions to the Nigerian Financial Intelligence Unit. This extends cryptocurrency regulation into the country’s broader anti-money laundering framework.

Following this development, Nigeria’s position as Africa’s leading Web3 hub continues to strengthen. A 2024 report by Hashed Emergent revealed more than 80 Nigerian startups have collectively raised over $130 million.

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We are excited the unveil the first-ever Nigeria Web3 Landscape Report, in collaboration with our knowledge partners @QuidaxGlobal, @withconvexity_ , @Web3Bridge, and @InfusionLawyers.

Now in its… pic.twitter.com/jOMWgJJd3c

— Hashed Emergent (@HashedEM) April 14, 2025

The country’s developer community contributed 4% to new Web3 developer growth in 2024. This represents the highest percentage on the African continent.

In addition, financial sectors are embracing Web3 technology with increased stablecoin usage. Zone Payment Network Limited partnered with Nigeria’s Inter-Bank Settlement System to employ blockchain innovations for transaction processing.

The new tax law represents Nigeria’s most comprehensive fiscal legislation in decades. Cryptocurrency transactions have shifted from largely opaque activities to ones that can be tracked, audited, and taxed through existing government infrastructure.