Taiwo Ayodele.webp
The Digest:

Nigeria has introduced a formal cryptocurrency taxation framework under the 2025 Tax Administration Act, set to take full effect in 2026. The rules mandate identity linking, strict reporting by exchanges, and align with global compliance standards

Key Points:
  • Crypto transactions must be linked to Tax Identification Numbers (TIN) and National Identification Numbers (NIN).
  • Virtual Asset Service Providers (VASPs) must register with tax authorities and conduct KYC checks.
  • Exchanges must report transactions monthly and retain records for at least seven years.
  • Suspicious or large transactions must be reported to the Nigerian Financial Intelligence Unit (NFIU).
  • Non-compliance can result in fines up to ₦10 million or license revocation.
  • Nigeria’s crypto market saw an estimated $92.1 billion in transactions between July 2024 and June 2025.
  • The framework aligns with OECD’s Crypto Asset Reporting Framework (CARF) for international compliance.
As Nigeria moves to formalize its crypto landscape, the new tax rules represent both opportunity and obligation, a balancing act between revenue generation and regulatory oversight. In the storm of digital finance, clarity often comes with compliance.


Sources: Nigerian Tax Administration Act 2025, market reports