The move brings digital asset activity directly into the country’s tax system and aligns Nigeria with global crypto reporting standards that took effect in 2026.
Nigeria has started tracking cryptocurrency transactions by linking them to individual tax and national identity records, marking a significant step in the country’s push to formalize oversight of the fast-growing digital asset market.
The framework is embedded in the Nigeria Tax Administration Act 2025, which allows authorities to associate crypto activity with individuals through their Tax Identification Number and National Identification Number. The system became operational as global crypto reporting standards came into force at the start of this year.
By integrating crypto data into existing tax and identity infrastructure, Nigerian authorities are moving away from informal monitoring toward direct attribution of digital asset activity to real people and businesses. The shift reflects broader efforts by governments worldwide to bring crypto transactions under conventional financial supervision.
How the tracking system works
Under the new rules, registered Virtual Asset Service Providers are required to collect and submit both TIN and NIN details alongside customer transaction records. The data is filed with tax authorities and can be shared with other financial oversight bodies when required.
A TIN is a unique identifier issued by the Nigeria Revenue Service and the Joint Revenue Board for tax administration and enforcement. The NIN, meanwhile, connects individuals to biometric information such as fingerprints and facial data stored in the National Identity Database. Together, the identifiers allow authorities to link crypto transactions to verified identities without relying on specialized blockchain surveillance tools.
Exchanges must report detailed information when filing returns, including the type of service provided, transaction dates, asset values, and total sales amounts. Customer records must include basic personal details such as name, address, phone number, email address, tax ID, and NIN where applicable.
The law also gives authorities the power to request additional information from exchanges at any time without prior notice, strengthening the government’s ability to audit and investigate crypto-related activity.
Compliance obligations and penalties
The framework places significant compliance obligations on crypto platforms operating in Nigeria. Exchanges are required to proactively flag and report large or suspicious transactions to both tax authorities and the Nigerian Financial Intelligence Unit.
They must also maintain know-your-customer records and retain customer transaction and identification data for at least seven years after the last recorded activity. Failure to comply can result in financial penalties of up to ₦10 million in the first month of default, followed by ₦1 million for each additional month of non-compliance. Persistent violations may lead to suspension or loss of operating licenses.
These measures mirror international anti-money laundering and tax enforcement standards and signal a tougher regulatory stance toward digital asset intermediaries.
Formalizing a major crypto market
Nigeria is one of the world’s most active cryptocurrency markets. The country processed an estimated $92.1 billion in digital asset transactions between July 2024 and June 2025, underscoring the scale of activity taking place largely outside traditional financial channels.
Officials see the new reporting system as a way to curb tax evasion, improve compliance, and broaden the country’s tax base as it seeks to reduce dependence on oil revenues. Even modest taxation of crypto-related activity could generate meaningful fiscal inflows over time.
The move also aligns Nigeria with the Organization for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, which took effect on Jan. 1, 2026. The framework enables participating jurisdictions to collect, analyze, and share information on cross-border digital asset transactions.
Nigeria’s tax tracking initiative builds on earlier regulatory steps. Last year, the government passed legislation formally bringing digital assets into the tax net. In April 2025, cryptocurrencies were classified as securities under the Investments and Securities Act, placing them under the oversight of the Nigerian Securities and Exchange Commission.
Together, these measures point to a clearer regulatory environment for crypto in Africa’s largest economy, even as they raise compliance costs for exchanges and reduce anonymity for users. For market participants, the message is increasingly clear that crypto activity in Nigeria is no longer operating outside the reach of the state.
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