The Nigerian government has implemented a sweeping regulatory overhaul, mandating that all cryptocurrency transactions be linked to real-world identities via Tax Identification Numbers (TINs) and National Identification Numbers (NINs). This initiative, part of the Nigeria Tax Administration Act (NTAA) of 2025 and spearheaded by the newly rebranded Nigeria Revenue Service (NRS), officially launched on January 1, 2026.
The new rules require Virtual Asset Service Providers (VASPs) to collect detailed customer information—including names, addresses, TINs, and NINs—before activating accounts or providing services. These platforms must then submit monthly transaction reports to the NRS, detailing the assets traded, their fair market value, and the personal details of the individuals involved. The policy aims to bring Nigeria's vast informal crypto economy into the formal tax net, creating a traceable and transparent digital asset ecosystem for taxation and enforcement.
Compliance is enforced with heavy penalties. Exchanges face an administrative fine of ₦10 million for the first month of failing to report, with a recurring ₦1 million fine for every subsequent month of default. The Securities and Exchange Commission has warned it may revoke the licenses of non-compliant platforms. The government's goal is to create a "digital paper trail" to accurately assess personal income tax, which can be as high as 25% on realized profits from digital asset sales.
While proponents argue the move provides regulatory clarity to attract institutional investment, critics warn it risks financial inclusion. Millions of Nigerians use crypto for savings and remittances, and the bureaucratic burden could push users toward unregulated peer-to-peer platforms. In response, the NRS has offered a temporary preparatory window for small-scale users and exempted over 90% of nano-businesses from certain corporate taxes.
This policy represents a decisive shift from years of regulatory uncertainty toward a formalized, tax-compliant digital asset market in Africa's leading cryptocurrency hub.
