Nigeria Uses Tax IDs to Trace Crypto Activity Without Onchain Monitoring

Nigeria is rolling out a new approach to cryptocurrency oversight that relies on tax and identity systems rather than blockchain surveillance, as part of a sweeping reform of its tax regime.

Under Nigeria’s newly tax reforms, crypto service providers are required to link transactions to Tax Identification Numbers (TINs) and, where applicable, National Identification Numbers (NINs). 

The framework, which took effect on Jan. 1, is embedded in the Nigeria Tax Administration Act (NTAA) 2025 and marks one of the country’s most sweeping tax overhauls. 

By requiring identity disclosure at the reporting layer, Nigeria aims to make cryptocurrency activity visible to tax authorities without directly requiring tax authorities to monitor blockchain infrastructure.

As a result, transactions previously difficult to associate with individuals can be matched against income declarations, tax filings and historical records. 

Identity-based reporting replaces onchain surveillance

Under the new framework, virtual asset service providers (VASPs) operating in Nigeria must file regular returns with tax authorities that include details about the nature and value of the digital asset transactions they facilitate. 

These reports must include customer identification data, including names, contact details and tax IDs, with NINs required for individual users where applicable under Nigeria’s identity laws.

The law also enables tax authorities to request additional information from service providers and requires long-term retention of transaction and customer records.

VASPs are also mandated to share relevant transaction data with tax authorities and financial intelligence units, extending existing AML reporting obligations.

For local regulators, the approach provides a more practical alternative to blockchain analytics, which can be technically complex and costly. By connecting compliance with tax and identity systems, authorities can follow crypto flows as they interact with regulated entities. 

The framework attempts to close enforcement gaps left by earlier legislation. to local news outlet Tech Cabal, even though Nigeria introduced a tax on crypto profits in 2022, compliance was uneven because of the difficulty of linking trades to identifiable taxpayers. 

The mandatory use of TINs and NINs seems to be designed to close this enforcement gap. 

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A global shift in crypto tax enforcement

Nigeria’s model mirrors a broader international trend toward identity-based crypto reporting.

The NTAA aligns with the Organization for Economic Co-operation and Development’s (OECD’s) Crypto-Asset Reporting Framework (CARF), which also . 

to the OECD, Nigeria is among a second batch of countries committed to implementing the global framework by 2028.

Nigeria’s adoption of such mechanisms signals its intent to integrate into this emerging global reporting network.

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