Nigeria Mandates Crypto Exchanges to Report User IDs for Tax Compliance

Under the NTAA 2025, crypto exchanges and VASPs operating in Nigeria are now mandated to collect and report specific identification details from their users, including TINs and NINs. These identification numbers are crucial for tracking individuals and businesses for tax purposes and serve as Nigeria’s primary identity verification. This new regime, which officially took effect on January 1, 2026, also stipulates that profits derived from crypto transactions will be subject to personal income tax. Furthermore, VASPs are required to flag and report large or suspicious transactions to Nigerian tax and financial intelligence units, thereby extending anti-money laundering (AML) obligations to the digital asset sector. Penalties for non-compliance can include administrative fines of ₦10 million for the first month and ₦1 million for every subsequent month of defaulting, along with potential license suspension.

The NTAA 2025 is part of a broader set of tax reform bills signed into law by President Bola Ahmed Tinubu on June 26, 2025, which aim to streamline tax collection, boost revenue, and align Nigeria with global standards. The new law explicitly treats profits from digital assets as chargeable gains and subjects them to personal income tax rates, which can climb as high as 25% for individuals, replacing the previous flat 10% capital gains tax on such assets. For companies, a 30% corporate income tax applies to profits from their crypto operations.

Nigeria’s updated regulatory approach aligns with international tax compliance standards, including the OECD’s Crypto-Asset Reporting Framework (CARF), which also became effective on January 1, 2026. CARF is a global initiative designed to facilitate the cross-border sharing of crypto tax data among participating jurisdictions, with over 60 countries committing to its implementation. The framework mandates reporting crypto-asset transactions to local tax authorities, which then share this data with partner jurisdictions where users are tax resident, with the first exchanges of information expected by 2027.

The primary stated reasons for these reforms are to enhance tax compliance, broaden government oversight of the rapidly growing digital economy, and bring Nigeria’s digital asset policies in line with global anti-money laundering (AML) and tax transparency standards. According to the Nigeria Tax Reforms Committee Chairman, the goal is to subject crypto profits to personal income tax, similar to traditional financial earnings. This shift reflects a global trend where governments are increasingly seeking to map crypto ownership and curb tax evasion, moving away from voluntary reporting towards a more enforced digital audit trail. Data from CoinLaw indicates that in 2025, 78% of the world’s largest economies will have formal crypto taxation policies in place, underscoring the international momentum behind such regulations.

Specific thresholds for what constitutes “large or suspicious transactions” that require reporting by VASPs have not been explicitly detailed in the provided information. While the NTAA 2025 requires banks to report accounts with cumulative monthly transactions of ₦50 million for individuals or ₦250 million for companies, it is unclear if these exact thresholds apply to crypto transactions reported by VASPs.

The implementation of the NTAA 2025 is expected to significantly reduce the anonymity previously associated with crypto transactions in Nigeria, enabling tax authorities to cross-reference digital asset income with declared earnings. This will likely lead to increased tax revenue for the Nigerian government and a more regulated environment for crypto users and businesses. The integration of CARF means that Nigerian authorities will also participate in the international exchange of crypto tax data, further tightening global tax compliance for residents engaging in cross-border crypto activities.

Nigerian crypto users and Virtual Asset Service Providers should take the following steps to ensure compliance with the new regulations:

• Obtain TIN and NIN: Individuals and businesses engaging in crypto activities must ensure they have valid Taxpayer Identification Numbers (TINs) and National Identification Numbers (NINs) and be prepared to provide them to crypto exchanges and VASPs.
• Maintain Detailed Records: Keep meticulous records of all cryptocurrency transactions, including dates, asset types, values in Naira at the time of transaction, and any associated fees, as these will be necessary for tax reporting.
• Understand Tax Obligations: Familiarize yourselves with the new personal income tax rates applicable to crypto profits, which can be up to 25%, and seek professional tax advice if needed.
• Comply with Reporting Requirements: Crypto exchanges and VASPs must update their systems and processes to collect and report client TINs/NINs and transaction data as mandated by the NTAA 2025.