Nigeria’s Crypto Tax Trap: Your NIN Will Betray You! 🐍🧾

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Key Highlights

  • Nigerian authorities, with the diligence of a detective in a 19th-century novel, now track citizens’ crypto income using their National ID (NIN) and Tax ID (TIN). 🕵️‍♂️
  • Crypto transactions are now taxable under NTAA 2025, a law so modern it might as well be written in a futuristic scroll. 📜
  • Virtual Asset Service Providers (VASPs) are instructed to report monthly customer and transaction details-because nothing says “trust us” like a mountain of paperwork. 📋

The Nigerian government, ever the vigilant guardian of fiscal order, has begun its grand quest to track crypto earnings under the Nigeria Tax Administration Act (NTAA) 2025. The new law, a labyrinth of red tape, allows the government to track citizens’ earnings using their Tax Identification Number (TIN) and National Identification Number (NIN). 🧩

According to a local report, the law officially became effective on January 1, 2026, and is designed to help authorities match crypto transactions to tax records-because nothing says “fairness” like a digital fingerprint. 🕵️‍♀️

Mandatory crypto tax reporting

Under the law, Virtual Asset Service Providers (VASPs), like crypto exchanges, must submit monthly reports to the tax authorities. These requested reports must include the user’s name, address, phone number, email, TIN, NIN, transaction dates, the type and value of the digital assets, and the total sales value. Because nothing says “transparency” like a 10-page form. 📄

Any counterparties involved in a transaction must also provide contact details. In addition, authorities can request more information from VASPs with or without notice. VASPs must also report large or unusual transactions to the Nigerian Financial Intelligence Unit (NFIU) to prevent money laundering and illegal activity. Because why trust a man with a wallet full of digital coins? 🚫

The government has instructed that VASPs that do not follow the requirements will pay ₦10 million ($7,026.57) for the first month and ₦1 million ($702.66) for the following months and could lose their license. A small fortune in Nigerian naira, which, in this context, is roughly the price of a decent loaf of bread. 🥖

The law further requires exchanges to retain KYC records, customer transactions, and identification data for at least seven years. Individuals engaged in crypto activities are also required to maintain books and report earnings to tax authorities. Because nothing says “freedom” like a seven-year audit. 📅

Similar to CARF

The NTAA aligns with the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework (CARF), which also took effect on January 1, 2026. It provides the tax officials with information on crypto trades done inside and outside Nigeria. According to the government, this framework “will enable tax authorities to track information on both local and foreign crypto transactions.” Because nothing says “global cooperation” like a tax form. 🌍

The government has informed citizens to get their TIN through the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB). The TIN is initially used to track individuals and businesses for taxes, while the NIN ties individuals to biometric data like fingerprints and facial scans. It also serves as the foundation for generating TINs. Because why have one ID when you can have two? 🔍

Nigeria’s history with cryptocurrency

Nigeria’s relationship with cryptocurrency has been nothing but dramatic over the years. In 2024, the government placed a ban on cryptocurrency and even detained two employees from Binance. Because nothing says “progress” like arresting crypto workers. 🚨

Despite this, the citizens still find a way to continue trading digital assets. This is surprising considering the fact that the Central Bank of Nigeria (CBN) had banned banks from dealing with crypto back in 2021. Because who needs banking when you can trade in shadows? 🕵️‍♂️

That same year, a total of $47 billion in transactions was recorded. Between June 2024 and June 2025, Nigeria received an estimated $92.1 billion in crypto transactions. The NTAA 2025 seeks to make this volume taxable by ensuring that digital asset profits are reported. Because nothing says “economic growth” like a tax on your digital dreams. 💸

Moreover, this initiative is coming after a failed attempt in 2022, when a 10% tax on crypto profits was enforced due to untraceable trades. However, this new law changes everything. Because now, even your crypto is under the government’s watchful eye. 👀

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2026-01-12 23:39