- The Nigerian government is set to implement new tax rules to integrate cryptocurrency revenue into the country’s taxation framework.
- Tax authorities will be able to track funds through National Identification Numbers and Tax IDs linked to users’ accounts without directly interacting with the blockchain.
The Federal Government of Nigeria has included cryptocurrencies and other digital assets into its taxation model and aims to conclude its execution beginning in January 2026. According to reliable local sources, Nigeria plans to trace crypto funds through government-issued identification numbers linked to crypto accounts on exchanges.
Virtual Asset Tax Codified In Nigeria’s Updated Tax Legislation
Nigeria’s bold move to tax crypto earnings officially ends the era where crypto assets were mostly relegated to the country’s regulatory grey zone. This follows the revamping of the country’s tax rules in 2025, which puts crypto assets in the same tax bracket as fiat currency.
Under the Nigerian Tax Administration Act of 2025, “a taxable person engaging in virtual assets-related activities, including the exchange, trading, custody, or issuance of virtual assets” must register with the relevant authority as a Virtual Assets Service Provider (VASP) for tax purposes.
Scope of Taxable Virtual Asset Activity
The legislation highlighted taxable virtual assets transactions to include the sale, exchange, or transfer of virtual assets. Similarly, income-generating mining and staking activities, as well as airdrops, bounties, or any form of virtual asset received as rewards, are now part of the virtual asset taxation framework.
In addition, the new law makes a broad classification for taxable activities to include “any other transaction or activity relating to virtual assets.” Such activities would include payment of goods and services made with crypto, which, according to the legislation, will be treated like transactions done using fiat currency.
Authorities To Track Compliance Using Government ID Links
To adequately track the movement of cryptocurrency, Nigerian authorities will rely on the use of government-issued IDs linked to crypto accounts, particularly the NIN (National Identification Number). The NIN will be automatically linked to each individual’s Tax ID, granting the government unfettered access to fund networks without necessarily interfacing with the blockchain.
The Nigerian Tax Administration Act of 2025 mandates virtual asset service providers (VASPs) to submit the Tax IDs and National Identification Numbers of customers alongside other vital pieces of information like their names, addresses, phone numbers, and email addresses to tax authorities.
A 2025 Chainalysis report ranked Nigeria as the leader in institutional crypto activity in Sub-Saharan Africa, closely followed by South Africa. The study unmasked over 92.1 billion in crypto value flowing through the country’s economy between July 2024 and June 2025, highlighting the country’s growing influence as a top global crypto market shareholder.
The government of Nigeria now looks to tap into the billion-dollar crypto industry as part of its gameplan to boost its tax-to-GDP ratio from below 10% to 18% by 2027.
Crypto Goes Mainstream In Nigeria
While the inclusion of virtual asset revenue in the country’s tax net may not sit well with crypto users who have previously been conducting transactions untaxed, it signals the indisputable recognition of crypto in the country’s financial framework.
Nigeria’s Central Bank, alongside other regulatory agencies have been on a crackdown against crypto activities, especially P2P transactions, which expose average traders to more favorable foreign exchange options. At the peak of this regulatory assault, bank transactions that include references to crypto were flagged and blocked.
Given the emphasis on taxing virtual assets, Nigerian crypto traders and VASPs operating within the country can expect a refinement of crypto regulation to suit the changing economic realities. Relaxing the tense regulatory atmosphere could also lead to the return of giant crypto exchanges like OKX and Binance, which have blocked P2P trading and support for the Nigerian naira on their platforms.
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