New Tax Law Forces Crypto Platforms in Nigeria to Report User Identities

The shift is part of a broader restructuring of the country’s tax system and is designed to bring crypto activity into formal reporting channels without deploying complex blockchain surveillance tools.

Key takeaways:

• Crypto platforms must now link user activity to tax and national identity numbers
• Nigeria is prioritizing tax and identity data over onchain transaction monitoring
• The new framework aims to close long-standing enforcement gaps in crypto taxation

The new rules came into force on Jan. 1 under the Nigeria Tax Administration Act 2025, one of the most extensive tax reforms the country has introduced in years. Under the law, crypto service providers are required to associate transactions with Tax Identification Numbers, and in the case of individuals, National Identification Numbers as well. By anchoring crypto reporting to existing identity systems, authorities aim to make digital asset activity traceable at the compliance level rather than at the blockchain level.

Instead of attempting to decode anonymous wallet activity, tax authorities can now cross-check reported crypto transactions against declared income, historical tax records, and other financial data. Officials see this as a more efficient way to surface taxable activity that previously existed in regulatory blind spots.

From onchain tracking to identity-based compliance

The framework places new obligations on virtual asset service providers operating in Nigeria. These firms must submit periodic reports detailing the volume, value, and type of crypto transactions they facilitate. Crucially, those reports must include customer information such as names, contact details, and tax identifiers, with national ID numbers becoming mandatory for individual users.

Beyond routine reporting, the law grants tax authorities the power to demand additional data and requires providers to store transaction and customer records for extended periods. Large or suspicious transfers must also be flagged to tax agencies and financial intelligence units, effectively folding crypto activity into Nigeria’s existing anti-money laundering regime.

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For regulators, the approach is seen as more practical than relying on blockchain analytics, which can be costly, technically demanding, and limited when transactions move across multiple networks or jurisdictions. By focusing on regulated intermediaries and identity-linked reporting, authorities can track how crypto flows intersect with the formal economy.

The reform also addresses weaknesses in earlier policies. Nigeria introduced a tax on crypto profits in 2022, but enforcement proved difficult because many transactions could not be tied to identifiable taxpayers. Making TINs and NINs mandatory appears to be a direct response to that problem.

Nigeria’s move does not exist in isolation. The new system aligns with global efforts to standardize crypto tax reporting, including the Crypto-Asset Reporting Framework developed by the Organisation for Economic Co-operation and Development. That framework also took effect on Jan. 1, and Nigeria is among a group of countries that have committed to fully implementing it by 2028.

By embedding crypto oversight into tax and identity systems, Nigeria is signaling its intention to plug into an emerging international reporting network. Rather than treating digital assets as an ungovernable frontier, the country is positioning crypto as another taxable activity—one that must now leave an identifiable paper trail.

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