Nigeria is introducing a new cryptocurrency oversight system that relies on tax and identity verification rather than blockchain monitoring, as part of a major overhaul of its tax framework.
Under the Nigeria Tax Administration Act (NTAA) 2025, which took effect on Jan. 1, crypto service providers must link transactions to Tax Identification Numbers (TINs) and, where applicable, National Identification Numbers (NINs). The move aims to make crypto activity visible to tax authorities without the need for complex blockchain surveillance.
By tying transactions to individual identities, authorities can match crypto activity with income declarations, tax filings, and historical records, addressing enforcement gaps from previous regulations.
Identity-based reporting replaces on-chain monitoring
Virtual asset service providers (VASPs) operating in Nigeria are now required to submit regular reports to tax authorities detailing the nature and value of digital asset transactions. These filings must include customer identification data, such as names, contact information, TINs, and NINs for individual users.
The law also allows tax authorities to request additional data, mandates long-term retention of transaction and customer records, and requires VASPs to flag suspicious or large transactions to tax agencies and financial intelligence units, integrating crypto oversight with the country’s anti-money laundering (AML) framework.
For regulators, this approach is a practical alternative to technically complex and costly blockchain analytics. By linking compliance to tax and identity systems, authorities can track crypto flows as they pass through regulated entities.
The reform addresses enforcement gaps left by earlier legislation. According to Tech Cabal, despite Nigeria introducing a tax on crypto profits in 2022, compliance was uneven because transactions were difficult to link to identifiable taxpayers. Mandatory TIN and NIN reporting is designed to close this gap.
A global trend in crypto tax reporting
Nigeria’s framework aligns with an international shift toward identity-based crypto reporting. The NTAA follows the OECD’s Crypto-Asset Reporting Framework (CARF), which also came into effect on Jan. 1, and Nigeria is among the countries planning full implementation of the global standard by 2028.
By adopting these measures, Nigeria signals its commitment to integrating into the emerging global crypto reporting network.
