Nigeria Implements Mandatory Tax Identification Measures for Digital Asset Transactions

ChainCatcher News, according to Finance Feeds, the Nigerian government has officially launched a comprehensive regulatory reform requiring all cryptocurrency transactions to be linked to real-world identities through Taxpayer Identification Numbers (TIN) and National Identification Numbers (NIN). This initiative, led by the newly renamed Nigerian Revenue Service (NRS), is part of the 2025 Nigerian Revenue Administration Act.

By integrating these identity markers, the government aims to bring the country's vast informal cryptocurrency economy into the formal tax system, creating a traceable and transparent ecosystem for digital wealth. Now, Virtual Asset Service Providers (VASPs) operating in the country must legally verify their clients' tax identities before activating accounts or providing services.

According to new guidelines to be introduced in 2026, registered cryptocurrency exchanges will face strict data collection requirements and will be subject to heavy fines for non-compliance. These platforms must submit monthly transaction reports to the Nigerian Revenue Service, and failure to report these details will result in an administrative fine of 10 million naira for the first month of default, followed by a recurring fine of 1 million naira for each subsequent month. In addition, the Securities and Exchange Commission has warned that licenses may be revoked for exchanges that fail to meet these transparency standards.