January 12, (THEWILL) — The Federal Government has announced plans to make cryptocurrency transactions traceable under the Nigeria Tax Administration Act (NTAA) 2025.
This move is aimed at curbing tax evasion, improving compliance, and strengthening oversight of Nigeria’s digital asset ecosystem.
Under the new law, crypto transactions will be linked to individuals and businesses through the Tax Identification Number (TIN) and National Identification Number (NIN).
This integration allows the newly established Nigeria Revenue Service (NRS)—which replaces the FIRS—to track digital asset flows and match them against income declarations.
The initiative represents a significant policy shift for Africa’s largest economy. By attaching crypto transactions to TINs, authorities can identify taxable income derived from digital assets.
These measures align Nigeria with the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), which took effect globally on January 1, 2026, to combat cross-border tax evasion.
Key compliance requirements under the NTAA 2025 and the Investment and Securities Act (ISA) 2025 include:
Virtual Asset Service Providers (VASPs), including exchanges and wallet providers, must file monthly returns with the NRS.
These reports must include customer names, addresses, TINs, NINs, and detailed transaction data such as the value of assets traded in Naira.
Crypto exchanges must retain Know Your Customer (KYC) records and transaction histories for a minimum of seven years. They are also required to flag and report large or suspicious transactions to the Nigerian Financial Intelligence Unit (NFIU).
The NTAA 2025 shifts how crypto is taxed. Previously subject to a 10% flat capital gains tax under the Finance Act 2022, crypto profits are now treated as “chargeable gains.”
For individuals, these are taxed at progressive personal income tax rates ranging from 15% to 25% (for those earning above the ₦800,000 tax-free threshold). For large companies, the rate is aligned with corporate income tax at 30%.
Non-compliant VASPs face an administrative fine of ₦10 million in the first month of default and ₦1 million for each subsequent month.
Continued failure to comply may result in the suspension or revocation of operating licenses by the Securities and Exchange Commission (SEC).
The government believes this framework will unlock significant revenue potential, noting that Nigeria received approximately $92.1 billion in digital assets between mid-2024 and mid-2025.
The ISA 2025 further reinforces this by formally recognizing cryptocurrencies as securities, granting the SEC clear statutory powers to regulate all digital asset operators.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
