Key Highlights
- Nigerian authorities will now track citizens’ crypto income using their National ID (NIN) and Tax ID (TIN).
- Crypto transactions are now taxable under NTAA 2025, which aligns with international standards like the OECD’s CARF.
- Virtual Asset Service Providers (VASPs) are instructed to report monthly customer and transaction details, including suspicious trades, or they lose their license.
The Nigerian government has started taking steps to track crypto earnings under the Nigeria Tax Administration Act (NTAA) 2025. The new law will reportedly allow the government to track the earnings of its citizens using their Tax Identification Number (TIN) and National Identification Number (NIN).
According to a local report, the law officially became effective on January 1, 2026, and is designed to help authorities match crypto transactions to tax records so that earnings can be checked and taxed properly.
Mandatory crypto tax reporting
Under the law, Virtual Asset Service Providers (VASPs), like crypto exchanges, must submit monthly reports to the tax authorities. These requested reports must include the user’s name, address, phone number, email, TIN, NIN, transaction dates, the type and value of the digital assets, and the total sales value.
Any counterparties involved in a transaction must also provide contact details. In addition, authorities can request more information from VASPs with or without notice. VASPs must also report large or unusual transactions to the Nigerian Financial Intelligence Unit (NFIU) to prevent money laundering and illegal activity.
The government has instructed that VASPs that do not follow the requirements will pay ₦10 million ($7,026.57) for the first month and ₦1 million ($702.66) for the following months and could lose their license.
The law further requires exchanges to retain KYC records, customer transactions, and identification data for at least seven years. Individuals engaged in crypto activities are also required to maintain books and report earnings to tax authorities.
Similar to CARF
The NTAA aligns with the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework (CARF), which also took effect on January 1, 2026. It provides the tax officials with information on crypto trades done inside and outside Nigeria. According to the government, this framework “will enable tax authorities to track information on both local and foreign crypto transactions.”
The government has informed citizens to get their TIN through the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB). The TIN is initially used to track individuals and businesses for taxes, while the NIN ties individuals to biometric data like fingerprints and facial scans. It also serves as the foundation for generating TINs.
Nigeria’s history with cryptocurrency
Nigeria’s relationship with cryptocurrency has been nothing but dramatic over the years. In 2024, the government placed a ban on cryptocurrency and even detained two employees from Binance.
Despite this, the citizens still find a way to continue trading digital assets. This is surprising considering the fact that the Central Bank of Nigeria (CBN) had banned banks from dealing with crypto back in 2021.
That same year, a total of $47 billion in transactions was recorded. Between June 2024 and June 2025, Nigeria received an estimated $92.1 billion in crypto transactions. The NTAA 2025 seeks to make this volume taxable by ensuring that digital asset profits are reported.
Moreover, this initiative is coming after a failed attempt in 2022, when a 10% tax on crypto profits was enforced due to untraceable trades. However, this new law changes everything.
Also Read: El Salvador Continues Adding Bitcoin to Strengthen Its Reserve
