Nigeria has initiated a significant transformation in its approach to cryptocurrency regulation, emphasizing tax and identity systems instead of blockchain monitoring. This new framework, effective from January 1, aligns with the Nigeria Tax Administration Act (NTAA) 2025 and represents a major overhaul of the country's tax policies.
Under this reform, virtual asset service providers (VASPs) are required to associate transactions with Tax Identification Numbers (TINs) and National Identification Numbers (NINs) for individuals. These service providers must submit regular reports detailing the nature and value of digital asset transactions, including customer identification data. Additionally, the law mandates the long-term retention of transaction records and allows tax authorities to request further information as needed.
By implementing identity-based reporting, Nigeria aims to enhance the visibility of cryptocurrency activities to tax officials, facilitating better tracking of transactions tied to income declarations and historical records. This shift addresses enforcement challenges present in previous legislation, particularly following the introduction of a crypto profit tax in 2022, which faced compliance issues due to difficulties in linking trades to identifiable taxpayers.