Nigeria is taking a decisive step toward full crypto transaction traceability, unveiling a framework that directly links digital asset activity to national identity and tax records as part of a broader tax enforcement overhaul.
NTAA 2025 Brings Crypto Into the Tax Net
Under the Nigeria Tax Administration Act (NTAA) 2025, the government plans to make crypto transactions fully traceable by connecting them to individuals’ Tax Identification Numbers (TINs) and National Identification Numbers (NINs). This marks a major shift for Africa’s largest economy, which has historically struggled to monitor crypto flows due to limited tracing capabilities.
The initiative enables authorities to match crypto transactions against income declarations and tax filings, effectively removing anonymity from taxable digital asset activity. By attaching transactions to TINs, the government aims to ensure that crypto-derived income is captured within the formal tax system.
CARF Alignment Expands Oversight
Nigeria’s move also aligns with the OECD’s Crypto-Asset Reporting Framework (CARF), which officially took effect on January 1, 2026. The framework is designed to combat crypto tax evasion and avoidance by enabling cross-border data sharing and standardized reporting.
According to government statements, CARF will allow Nigerian tax authorities to track both domestic and foreign crypto transactions, placing the country in line with global compliance trends. Officials have pointed to similar systems in the UK, where crypto providers collect detailed taxpayer information to support enforcement.
A Market Too Large to Ignore
The timing of the reform is no coincidence. Nigeria received an estimated $92.1 billion in digital asset transactions between June 2024 and June 2025, highlighting the scale of economic activity taking place outside traditional tax channels. Authorities believe that formal taxation of this volume could unlock significant public revenue.
Tax IDs in Nigeria are issued through the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB). These identifiers are already used to track individuals and businesses, making them a natural extension point for crypto oversight.
Heavy Reporting Duties for VASPs
The NTAA 2025 imposes strict obligations on Virtual Asset Service Providers (VASPs), requiring them to file monthly returns with tax authorities. These filings must include customer names, addresses, phone numbers, emails, Tax IDs, and NINs, leaving little room for anonymity.
Reports must also detail transaction dates, asset types, transaction values, service descriptions, and sales values, along with identifying information for any counterparties involved. Nigerian authorities reserve the right to request additional information at any time, with or without prior notice.
Suspicious Activity and AML Integration
Beyond tax reporting, Nigeria now expects VASPs to flag and report large or suspicious transactions to both tax authorities and the Nigerian Financial Intelligence Unit (NFIU). This effectively integrates crypto oversight into the country’s anti-money laundering framework.
Exchanges must also retain KYC data, transaction histories, and identity records for at least seven years after a user’s last transaction. Individual crypto users are similarly required to maintain detailed records and books, ensuring that transaction histories can be audited if necessary.
Learning From Past Failures
Nigeria previously attempted to tax crypto profits through the Finance Act of 2022, which introduced a 10% tax on virtual asset gains. That effort largely failed, as transactions could not be reliably linked to individuals. The new ID-based system is designed to eliminate that weakness.
SEC Oversight and Penalties
The framework aligns with the Investment and Securities Act (ISA) 2025, which recognizes cryptocurrencies as securities. This empowered the Securities and Exchange Commission (SEC) to oversee VASPs, Digital Asset Operators, and exchanges.
Non-compliant VASPs face monthly fines starting at roughly $7,026, followed by ongoing penalties of about $703, alongside the risk of license suspension or revocation. The message is clear:
