Nigeria Introduces New Rules To Track and Tax Cryptocurrency Transactions

• Nigeria now links crypto activity to real identities.
• Crypto income is fully taxable, with exchanges required to report user data to authorities.

Nigeria has now officially started tracking crypto transactions by linking the people’s tax IDs. This is the part of the Nigeria Tax Administration Act 2025, which took effect along with the global crypto tax 2026. This means now crypto is no longer informal, and it has come under the government radar with full visibility. 

New Law Forces Nigerian Crypto Platforms to Track and Report All User Activity

The Act is basically tracking all the people’s transactions through crypto exchanges that are operating in Nigeria. These exchanges must now collect users’ Tax Identification Number (TIN) and National Identification Number (NIN) and should report every crypto transaction to tax authorities. This means that the crypto transactions are directly connected to the real identities and tax records. 

After collecting the required documents, the Exchanges must submit Username, address, phone, email, TIN, NIN, Transaction date, Value, Total sales, Balance, and the report of large or suspicious transactions. They should keep these records for at least 7 years. They should share these data regularly with the tax authorities. If the crypto platforms don’t follow the rules, then the exchanges will be charged 10 million Nigerian Naira in the first month and 1 million Nigerian Naira for every additional month. If this continues from the exchanges, there is the possibility of licence suspension or shutdown. 

Nigeria processed about $92 billion in crypto transactions in one year, which is one of the world’s biggest crypto markets. So the government wants to stop crypto tax evasion and increase tax revenue. This can also improve its tax-to-GDP ratio and bring crypto into the formal tax system. 

Nigeria’s System aligns with the OECD Crypto Asset Reporting Framework(CARF), which allows countries to share crypto tax data and to track cross-border crypto activity. With tens of billions of dollars flowing into Nigeria through crypto, it is very hard for the regulators to ignore.

This move from the government shows that crypto in Nigeria is no longer anonymous, and every major transaction can now be traced to a person. For the users, this act brings them less legal uncertainty and more responsibility to declare crypto income.   

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