Nigeria is adopting a transformative method for overseeing cryptocurrency activities by linking tax and identity systems, as outlined in its recent tax reforms.

Under these reforms, crypto service providers must associate transactions with Tax Identification Numbers (TINs) and National Identification Numbers (NINs) when necessary. This framework was implemented as part of the Nigeria Tax Administration Act (NTAA) 2025, officially commencing on January 1.

This change aims to enhance transparency regarding cryptocurrency dealings for tax authorities without necessitating direct monitoring of blockchain networks.

Details regarding the implementation of this framework include:

• Virtual asset service providers (VASPs) are obligated to submit regular reports to tax authorities containing information about digital asset transactions and customer identification details.
• The requirement for reporting customer data, including names and tax IDs, aims to bring significant transparency to crypto transactions.
• This law empowers tax authorities to request supplementary information from VASPs and mandates the long-term preservation of transaction and customer records.

Nigeria’s initiatives reflect a broader worldwide trend towards identity-centric reporting for cryptocurrencies. The NTAA aligns with the OECD’s Crypto-Asset Reporting Framework (CARF) as part of a global network aimed to be in place by 2028.

Readers are advised to verify information independently.