Nigeria Eyes Crypto Cash: National IDs and Taxes in the Spotlight 💰

• In this post:
• The Nigerian government plans to trace crypto transactions under the new Nigeria Tax Administration Act (NTAA) 2025.
• The country’s tax authorities will be able to trace crypto funds via the Tax Identification Number (TIN) and the National Identification Number (NIN).
• The government plans to track crypto funds and match them against income declarations and tax records by attaching the transactions to TINs.

The Nigerian government plans to make crypto transactions fully traceable under the Nigeria Tax Administration Act (NTAA) 2025. The legislation allows authorities to link digital asset transfers to individuals’ Tax Identification Numbers (TINs) and National Identification Numbers (NINs).

This move marks a major step in improving transparency in the country’s crypto space, which previously lacked the ability to monitor digital asset flows effectively. By matching crypto transactions against income declarations and tax records, the government aims to curb tax evasion and ensure proper reporting.

The initiative aligns with the Organization for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), which came into effect on January 1, 2026. CARF is designed to prevent tax avoidance in the crypto sector, providing governments with tools to track both domestic and international crypto transactions.

Nigeria’s approach mirrors efforts in other countries, such as the UK, where crypto providers collect customer information, including names, birth dates, and tax identifiers, to ensure compliance with national tax regulations.

The Nigerian government issues the TIN (Tax ID) through the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB). The government uses the Tax ID to track individuals and businesses for tax administration, enforcement, and compliance.

The West African country’s initiative comes as a report revealed that it received approximately $92.1 billion in digital assets between June 2024 and June 2025. The amount represents the total transaction value, which Nigeria hopes to benefit from once taxable. 

The NTAA 2025 requires Virtual Asset Service Providers (VASPs) to file monthly returns to the relevant tax authority. The law also requires the returns to contain the name, address, telephone number, email address, Tax ID, and the national identification number of individual customers. 

The returns are expected to include the nature of the crypto service provided, transaction dates, the type and value of the digital assets transacted, and the sales value of the cryptocurrency. Any other counterparty involved in the transaction is also required to provide the name, address, telephone number, and email address. The law also revealed that Nigerian tax authorities can request additional information from VASPs, with or without notice.

Nigeria requires VASPs to flag and report large or suspicious crypto transactions

The Nigerian government added that it expects VASPs to flag and report large or suspicious transactions to both the tax authorities and the Nigerian Financial Intelligence Unit (NFIU). The initiative boosts the country’s crypto oversight into its anti-money laundering framework.

Nigeria Tightens Crypto Rules: KYC, Record-Keeping, and Compliance Under Spotlight

Crypto exchanges in Nigeria are now required to retain Know Your Customer (KYC) records, customer transaction histories, and identification data for at least seven years after the last transaction. Under the country’s income tax law, individuals engaging in crypto activities must also maintain proper records and report digital asset transactions to the relevant tax authorities.

Nigeria previously attempted to tax crypto profits under the Finance Act of 2022, which imposed a 10% tax on virtual asset gains. The effort failed due to difficulties in linking transactions to individual users.

The new initiative complements the Investment and Securities Act (ISA) 2025, which formally recognizes cryptocurrencies as securities. This regulatory framework allows the Securities and Exchange Commission (SEC) to monitor Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOs), and Digital Asset Exchanges (DAXs).

Under the law, non-compliant VASPs face penalties of $7,026.57 in the first month of default and $702.66 for each subsequent month. Persistent violations may also lead to license suspension or revocation, ensuring stricter enforcement in Nigeria’s growing crypto market.