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Nigeria now requires cryptocurrency exchanges to collect customers’ tax and national identification numbers and report transaction data directly to authorities, under new regulations that took effect Jan. 1, 2026.
The policy marks one of the most comprehensive attempts by an African government to bring digital assets under formal tax oversight, affecting a market that processed an estimated $92.1 billion in the past year.
The framework requires cryptocurrency exchanges and other Virtual Asset Service Providers (VASPs) operating in the country to collect and submit detailed customer and transaction data to tax and financial authorities operating similarly to that of Ghana’s framework.
By tying crypto activity to both the Tax Identification Number (TIN) and the National Identification Number (NIN), regulators can directly associate digital asset transactions with real identities and existing tax records.
At the core of the new reporting regime is the integration of cryptocurrency transactions into Nigeria’s existing tax infrastructure. Under the Nigeria tax law, every registered VASP must collect customers’ TINs and, where applicable, their NINs as part of standard onboarding and compliance procedures.
A TIN is a unique identifier issued to individuals and businesses by the Nigeria Revenue Service and the Joint Revenue Board. It enables tax authorities to monitor income, enforce compliance, and administer taxes across different economic activities.
The NIN, by contrast, serves as a national identity credential, linking individuals to biometric data such as fingerprints and facial recognition records stored in the National Identity Database.
By combining both identifiers, the government can trace crypto transactions back to verified individuals without relying on complex or costly blockchain surveillance systems.
Authorities argue that this approach allows for more efficient oversight while embedding digital assets within the country’s existing tax administration framework.
The reporting requirements introduced by the Nigeria tax law are extensive. When filing returns, VASPs must disclose the nature of the virtual asset services provided, transaction dates, the value of assets exchanged, and total sales amounts over the reporting period.
These filings must also include customers’ basic personal details, such as names, addresses, phone numbers, email addresses, tax identification numbers, and NINs where available.
Beyond routine filings, regulators are empowered to request additional information from exchanges at any time, without prior notice. Crypto platforms are also obligated to proactively flag and report large or suspicious transactions to both tax authorities and the Nigerian Financial Intelligence Unit.
To strengthen enforcement, exchanges must retain customer identification and transaction records for a minimum of seven years after the last recorded activity.
Non-compliance carries significant consequences, including financial penalties of up to ₦10 million in the first month of default and ₦1 million for each subsequent month, as well as the potential suspension or revocation of operating licenses.
Nigeria’s reporting framework is closely aligned with the Organization for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, which came into force on Jan. 1, 2026.
The OECD standard is designed to enable tax authorities to collect, analyze, and share information on cross-border digital asset transactions, closing gaps that previously allowed crypto-related income to go unreported.
By adopting these standards into Nigeria tax law, the government positions itself to participate in international information-sharing arrangements while strengthening domestic oversight. The policy reflects a broader effort to integrate digital assets into formal financial and regulatory systems, rather than treating them as a parallel or informal economy.
Nigeria’s crypto market processed an estimated $92.1 billion in digital asset transactions between July 2024 and June 2025, placing the country among the most active crypto hubs globally.
Officials see the formalization of reporting and taxation as a way to capture a portion of that economic activity as public revenue, particularly as the country seeks to diversify away from oil dependence and improve its tax-to-GDP ratio.
The new reporting regime builds on earlier regulatory steps taken by Nigerian authorities. Last year, lawmakers passed legislation that formally brought digital assets into the tax net, providing the legal basis for the current reporting obligations.
In April 2025, cryptocurrencies were also classified as securities under the Investments and Securities Act, placing them under the regulatory oversight of the Nigerian Securities and Exchange Commission.
Together, these measures mark a shift toward comprehensive regulation of the crypto sector. By embedding digital assets within Nigeria tax law and securities regulation, authorities aim to curb tax evasion, improve transparency, and create clearer rules for both domestic and international operators.
While the long-term impact on user behavior and exchange operations remains to be seen, the introduction of identity-linked crypto reporting represents a significant milestone in Nigeria’s approach to digital assets.
For regulators, it offers a clearer view of a rapidly growing sector. For market participants, it signals that crypto activity is now firmly within the country’s formal tax and compliance landscape.
