Nigeria Initiates Crypto Transaction Tracking Through Tax IDs
Nigeria has started tracking cryptocurrency transactions and linking them to individuals under the Nigeria Tax Administration Act 2025.
The Nigerian government has taken a significant step towards regulating the cryptocurrency sector by introducing a system to track crypto transactions through tax identification numbers. This move is in line with the new Organization for Economic Cooperation and Development’s crypto asset reporting framework, which came into effect on January 1, 2026. The framework enables authorities to collect, analyze, and share information on cross-border digital asset transactions.
Key Provisions of the Nigeria Tax Administration Act 2025
Under the Tax Administration Act 2025, crypto exchanges are required to report customer data, transaction details, and suspicious activities to tax and financial authorities. The law also mandates the collection of Tax Identification Numbers (TIN) and National Identification Numbers (NIN) from customers. A TIN is a unique identifier assigned to Nigerians and businesses by the Nigeria Revenue Service and the Joint Revenue Board, while a NIN is the national identifier that links individuals to personal biometric information such as fingerprints and facial data in the National Identity Database.
The Nigeria Tax Administration Act 2025 requires all registered Virtual Asset Service Providers (VASPs) to collect both TIN and NIN data and report this along with customer transaction records. This allows the government to trace crypto activity back to real people and tax records without relying on expensive or invasive blockchain surveillance infrastructures. When filing returns, VASPs must provide a variety of details, including the type of virtual asset service provided, the date of the transaction, the value of the assets involved, and the total sale amount.
Compliance and Penalties
Crypto exchanges that fail to comply with the new regulations may be subject to fines of up to 10 million (approximately $7,014) for the first month of non-compliance and 1 million (approximately $702) for each month of non-compliance, as well as risk suspension or loss of license. Additionally, exchanges are required to proactively flag and report large or suspicious transactions to both tax authorities and the Nigerian Financial Intelligence Unit.
The Nigerian cryptocurrency market processed an estimated $92.1 billion in digital assets between July 2024 and June 2025, making it one of the most active crypto hubs worldwide. By taxing even a fraction of this amount, the government could generate significant revenue and diversify away from oil revenues. The initiative aims to curb crypto-related tax evasion, formalize the sector, and improve the tax ratio to GDP in the coming years.
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