Nigeria Implements New Cryptocurrency Surveillance System Linked to Taxes

Nigeria Adopts Tax Reforms to Regulate Cryptocurrencies

Nigeria is redefining its approach to cryptocurrency oversight, emphasizing taxation and identity systems rather than blockchain monitoring as part of a comprehensive tax reform. According to the newly implemented tax reforms, cryptocurrency service providers are required to associate transactions with Tax Identification Numbers (TIN) and, where applicable, National Identification Numbers (NIN). This regulation, which took effect on January 1, is part of the Nigeria Tax Administration Act (NTAA) 2025 and represents one of the most significant tax reforms in the country.

By enforcing identity disclosure at the reporting level, Nigeria aims to make cryptocurrency activities visible to tax authorities without needing to monitor blockchain infrastructure. Thus, transactions that were previously difficult to link to specific individuals can now be correlated with income statements, tax returns, and historical records.

Under the new framework, Virtual Asset Service Providers (VASPs) in Nigeria must submit regular reports to tax authorities, detailing the nature and value of facilitated digital asset transactions. These reports must include customer identification data, including names, contact information, and TINs, while NINs are mandatory for individual users. The law also allows tax authorities to request additional information from service providers and imposes long-term record-keeping requirements for transaction and customer details. Additionally, VASPs are required to flag suspicious and large transactions to tax agencies and financial intelligence units, thereby extending oversight under anti-money laundering (AML) legislation.

This model aligns with a broader international trend toward identity-based reporting for cryptocurrencies. The NTAA corresponds with the OECD's cryptocurrency asset reporting framework, which also came into effect on January 1. According to the OECD, Nigeria is part of a group of countries committed to implementing this global framework by 2028. Nigeria's adoption of such mechanisms signals its intention to integrate into this emerging global reporting network.