Nigeria has adopted a new digital asset tax framework under the Nigerian Tax Administration Act (NTAA) 2025, linking cryptocurrency transactions to Tax Identification Numbers (TINs) and National Identification Numbers (NINs). The model focuses on service providers instead of trying to monitor blockchains directly.
VASPs must register, verify users, and file monthly reports
Under the framework, Virtual Asset Service Providers (VASPs) must register with tax authorities and carry out mandatory KYC checks. Identity verification is tied to TIN and NIN data. Starting in 2025, VASPs are required to submit monthly transaction reports covering asset categories, transaction and sale dates, transaction values, customer identity details, and counterparty information.
Large or suspicious transactions must also be reported to the Nigerian Financial Intelligence Unit, or NFIU. The rules require VASPs to retain transaction records and customer identity information for at least seven years. Non-compliance can bring penalties of up to ₦10 million and possible license revocation.
Framework aligns with global crypto tax reporting standards
The law is designed to move crypto activity into Nigeria’s formal tax system. By connecting transactions to verified identities, authorities can compare digital asset income with declared earnings and tighten tax enforcement. The source says the framework is aligned with the OECD’s Crypto Asset Reporting Framework, or CARF, which is set to take effect on January 1, 2026.
In practice, Nigeria is following the same broad direction seen in the UK and the EU by requiring service providers to collect and report taxpayer identity data. That creates an auditable trail without relying on direct blockchain surveillance tools.
$92.1 billion in transaction volume raises the stakes
The report estimates that Nigeria’s cryptocurrency market recorded $92.1 billion in transaction value between July 2024 and June 2025. That figure reflects total transaction volume rather than profit, but even partial taxation could open a sizable revenue channel for the government.
Nigeria is also trying to lift its tax-to-GDP ratio from below 10% to 18% by 2027 as it looks to reduce reliance on oil. That gives crypto taxation a clear place in the country’s broader fiscal plan. The framework also brings trade-offs: higher compliance costs and privacy concerns. The source notes that smaller platforms may struggle, which could accelerate market consolidation, while tougher rules may also make the market more appealing to institutional investors.