Nigeria has officially taken a significant step toward regulating and monetizing its fast-growing digital asset economy, announcing that cryptocurrency-related activities will now fall under the country’s formal tax framework.
The move marks one of the most significant regulatory shifts in Africa’s largest cryptocurrency market, signaling the government’s intention to tighten oversight, curb revenue leakages, and bring digital asset transactions into the national economic framework.
Nigeria Introduces Comprehensive Crypto Taxation Under New Law
According to a recent TechCabal report, the newly signed tax legislation expands Nigeria’s tax net to include cryptocurrency trading, exchange activities, and digital asset income streams. Further, the Nigerian Tax Administration Act (NTAA 2025) now requires crypto transactions to be tied to an individual’s Tax Identification Number (TIN) and National Identification Number (NIN)
Interestingly, this updated framework was designed to address the large volume of unregulated crypto transactions occurring across centralized exchanges, peer-to-peer platforms, and blockchain-based financial services used by millions of Nigerians.
Under the new law, individuals and corporations engaging in crypto transactions will now be subject to capital gains tax, income tax, and reporting requirements. Authorities say the measure aims to improve transparency in a sector that has long operated at the edge of formal financial oversight, making it difficult for regulators to track money flows or enforce taxation.
Meanwhile, this new development places Nigeria among a growing list of countries that are formalizing their crypto taxation rules. Furthermore, the country’s new focus on cryptocurrency stems from the government’s plans to increase tax revenue and reduce its dependency on oil income.
Targeting Revenue Leakage and Enhancing Oversight
The push to tax cryptocurrency activity also reflects Nigeria’s effort to prevent further economic leakages amid ongoing fiscal pressure. Officials stated that billions of naira in crypto transactions occur each year without taxation, a trend they intend to reverse.
The law requires crypto exchanges and Virtual Asset Service Providers serving Nigerian users to request customer details, including full name, address, TINs, and NINs. These entities will be required to submit monthly transaction reports and cooperate with tax authorities to ensure compliance with applicable regulations. Furthermore, these platforms must report large or suspicious transactions to the tax authorities and retain customer records for a specified period.
Meanwhile, this new dynamic could reshape the broader cryptocurrency landscape, potentially prompting exchanges to seek licensing or adopt stricter Know Your Customer (KYC) processes in line with Nigeria’s anti-money laundering standards.
Impact on Crypto Usage and Market Sentiment in Nigeria
The announcement has generated mixed reactions within the local crypto community. Some traders fear increased tax burdens could discourage trading or push activities further into decentralized platforms. Others argue the move legitimizes digital assets and could attract institutional players who were previously wary of regulatory uncertainty.
Meanwhile, Nigeria’s decision could recalibrate crypto adoption trends in the country, especially across fintech startups, traders, and blockchain-based remittance services. While the long-term impact remains uncertain, the introduction of a tax framework marks a pivotal turning point in Nigeria’s evolving relationship with cryptocurrency.
Temitope Olajide
