Nigeria has taken a decisive step to bring crypto activity into its formal tax system. Digital asset trades are to be linked to real-world identities using Tax Identification Numbers and National Identification Numbers within the framework of the new Nigerian Tax Administration Act 2025.
While the legislation does nothing to change the functionality of blockchain networks, authorities are now allowed to connect trading activity to individuals and corporations for tax purposes.
According to tech policy researcher Frank Eleanya, this approach will enable regulators to test the impact of digital assets on the economy without compromising the security of the blockchain.
By linking wallet activities to TINs created from NINs, tax authorities can therefore easily identify digital assets income and match it against extant tax records. What this does is to turn oversight from indirect into direct accountability.
The change brings Nigeria in line with global rules. Beginning on January 1, 2026, the OECD’s Crypto Asset Reporting Framework will allow tax agencies to send and receive crypto-transaction data across borders. Some countries, such as the UK, already mandate exchanges to collect taxpayer identifiers, and it seems that Nigeria is now following suit.
Also Read: Michael Selig Sparks Hope for CFTC’s Crypto Regulation in 2025
Why Crypto Is Now a Revenue Priority
The digital asset market in Nigeria has grown very fast. Transactions in the country reached about $92.1 billion from July 2024 to June 2025, placing Nigeria as one of the largest crypto markets in the world.
The government plans to raise its tax-to-GDP ratio from less than 10% to 18% by 2027. As oil revenues decline, digital assets are another source of income. The figure is a proxy for transaction volume, not profits, but taxable gains on even a small proportion could be substantial.
How the Reporting System Will Work
With new rules, the Virtual Asset Service Providers have to register with the tax authorities and file regular reports on a monthly basis. These reports should include the nature of service, time of transactions, asset values, and full customer identity information, such as TIN, NIN, and contact information.
Exchanges also need to flag large or suspicious transactions to both the tax authorities and the Nigerian Financial Intelligence Unit.
Compliance costs will go up. VASPs must keep user records for at least seven years and must always respond to information requests, even without any warning. According to analysts such as Kalu Aja, this simply draws crypto trading into Nigeria’s larger anti-money laundering system.
The old 10% crypto tax in Nigeria didn’t work out due to weak enforcement. In the new identity-linked system, traders are required to declare crypto income; there could be a fine imposed on platforms starting at 100,000 naira, or even cancellation of a license. With the Investment and Securities Act 2025, the law changes in Nigeria’s digital asset market.
Also Read: Arizona Files New Legislation to Remove Crypto From State and Local Taxes
