Starting January 1, 2026, every single crypto transaction in Nigeria needs to be tied to a real identity. No exceptions.
The Nigeria Tax Administration Act 2025 went live this month, and it’s bringing some serious changes. Anyone trading digital assets now has to link their accounts to a Tax Identification Number (TIN) and National Identification Number (NIN). The government isn’t playing around here.
The New Rules Hitting Exchanges
The new rules hit crypto exchanges hard. Virtual Asset Service Providers operating in Nigeria must verify every customer’s tax ID before letting them trade. This applies whether you’re buying Bitcoin, selling Ethereum, or moving any digital asset through an exchange.
Think about what this means. Nigeria processed around $92.1 billion in crypto transactions between July 2024 and June 2025. That’s a massive market that was mostly flying under the tax radar. Not anymore.
The Nigeria Revenue Service now requires monthly reports from every exchange. These reports need names, addresses, phone numbers, emails, TINs, NINs, transaction dates, asset types, values, and sales figures. They want everything.
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The Compliance Burden Gets Real
Crypto platforms face strict penalties if they don’t comply. First-time violations cost 10 million naira (roughly $7,000). Miss another month? That’s 1 million naira ($700) every single month after. Keep failing, and the Securities and Exchange Commission might just revoke your license entirely.
Exchanges also need to flag suspicious transactions. Large transfers go straight to the tax authorities and the Nigerian Financial Intelligence Unit. The government wants a complete digital paper trail.
Here’s something that surprised many traders: platforms must keep all KYC records and transaction data for a minimum of seven years. That’s a long time to hold onto customer information.
Why Nigeria Took This Route
The government tried taxing crypto before. Back in 2022, they introduced a 10% tax on digital asset profits. It flopped because nobody could actually track who was making what. Transactions stayed anonymous, and enforcement became impossible.
This time, they’re going straight to the identity layer. Instead of trying to track blockchain transactions, they’re forcing exchanges to connect every trade to a verified taxpayer. It’s simpler and way more effective.
The move also puts Nigeria in line with the OECD’s Crypto-Asset Reporting Framework, which kicked off January 1, 2026. They’re joining a global push to bring crypto under tax oversight.
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The Reality Check for Users
Personal income tax on crypto gains now goes up to 25% on realized profits. That’s substantial. For traders who’ve been operating without declaring earnings, this changes everything.
Getting your TIN happens through the Nigeria Revenue Service or Joint Revenue Board. The NIN connects to biometric data like fingerprints and facial scans. Once linked, your crypto activity becomes visible to tax authorities whenever funds touch the formal financial system.
Some people worry this might push users back to peer-to-peer platforms. Ayotunde Alabi, CEO of Luno Nigeria, pointed out the timing issue. Taxation arrived before clear licensing rules. That creates uncertainty about who exactly falls under these requirements.
Looking Ahead at Enforcement
The enforcement window is open. Tax authorities can request additional information from exchanges anytime, with or without notice. They’re watching closely as the system rolls out.
Nigeria banned crypto banks from dealing with exchanges back in 2021. Then they reversed that ban in 2023. In 2024, they even detained Binance executives over naira manipulation accusations. The relationship between government and crypto has been rocky, to say the least.
This new approach feels different though. It’s less about blocking crypto and more about bringing it into the system. Whether that works depends on how the industry adapts.
Some exchanges support the clarity. Others see it as taxation without a proper regulatory framework. The debate continues while compliance deadlines loom.
For now, Nigerian crypto traders face a choice: register properly, keep detailed records, and pay taxes on gains, or risk penalties and account freezes. The anonymous crypto days in Nigeria just ended.
Also Read: On-Chain vs. Off-Chain Transactions: What’s the Difference?
What is the Nigeria crypto tax ID requirement?
All crypto traders must link their accounts to a Tax Identification Number (TIN) and National Identification Number (NIN) starting January 2026. Exchanges verify these before allowing any transactions.
How much tax do Nigerians pay on crypto profits?
Personal income tax on crypto gains reaches up to 25% on realized profits. This applies to all digital asset sales through registered exchanges.
What penalties do exchanges face for non-compliance?
First violations cost 10 million naira. Each following month adds 1 million naira in fines. Continued failure can result in license revocation by the Securities and Exchange Commission.
Can I still trade crypto anonymously in Nigeria?
No. The Nigeria Tax Administration Act 2025 requires identity verification for all crypto transactions through registered platforms. Anonymous trading is no longer permitted.
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Disclaimer:
Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.
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