Nigeria has formally introduced cryptocurrency taxation in its tax system. The Nigeria Tax Administration Act (NTAA) 2025, which took effect on January 1, 2026, serves as the foundation for the new system and mandates that cryptocurrency transactions and profits be linked to taxpayer identities for tax purposes and traceability.
Transactions involving cryptocurrency are no longer regarded as opaque or anonymous under the law. Rather, Nigerian tax officials will use two official identifiers to directly link activities to people and companies.
These include the Tax Identification Number (TIN) as its main point of reference and National Identification Number (NIN).
The goal of linking TINs and NINs to cryptocurrency transactions is to provide the federal government with a clear view of income from digital assets. It also ensures that charges are reported correctly in accordance with current tax regulations.
Stricter Reporting and Oversight
The NTAA 2025 requires exchanges and wallet platforms, which are among Virtual Asset Service Providers (VASPs), to routinely collect and submit comprehensive user data to tax authorities. Official legal summaries state that the following must now be included in monthly reports:
- TIN and NIN, contact information, and user names.
- Dates of transactions, kinds of assets, and Naira prices.
- Records of cryptocurrency transactions, transfers, and receipts of crypto as rewards or income.
Additionally, platforms must keep transaction histories and KYC information for a minimum of seven years, which adds a level of responsibility not present in previous fiscal systems.
Policy Context and Compliance
The change is part of a broader overhaul of Nigeria’s tax system 2026, which was implemented in June 2025. The goal is to increase the government’s revenue base and modernise compliance.
Authorities and fiscal officials have stressed that the reforms clarify current obligations rather than imposing new taxes on previously untaxed activities. Despite worries about enforcement and public understanding, the NTAA merely specifies that income should be recorded and reported in practice.
Officials note that income from digital assets, such as cryptocurrency, has always been subject to tax under regular income tax regulations.
What This Means for Nigerians
The changes indicate a move toward integration with the formal economy for individual traders, investors, and companies that use cryptocurrency. According to analysts, the system could increase transparency, reduce tax evasion, and align Nigeria with global standards such as the OECD Crypto-Asset Reporting Framework (CARF), which took effect in early 2026.
Critics caution that some traders may return to peer-to-peer (P2P) marketplaces, where enforcement is more difficult, due to higher compliance costs and reporting obligations. However, supporters contend that, because Nigeria remains one of the world’s most active cryptocurrency markets, a robust tax infrastructure is necessary.