Nigeria has introduced a new tax law on cryptocurrency transactions, placing them under monitoring and also giving individuals the opportunity to earn a small amount of cryptocurrency profits. The primary objective of this step is to reform the tax system and enhance monitoring capacity by assigning users a unique Tax Identification Number (TIN) and a National Identification Number (NIN).
With the help of these identification numbers, the Nigerian government can trace the crypto transactions seamlessly and with the best accuracy. Moreover, in this process, the security of blockchain will not be compromised in any sense. TechCable’s analysis of the Nigerian Tax Administration Act (NTAA) 2025 discloses how the government plans to connect transactions to real identities via TINs and NINs. Wu Blockchain, a prominent crypto journalist and media outlet, has released this news through its official social media X account.
Linking TINs and NINs for Full Transaction Traceability
The main purpose of linking TINs and NINs with invisible cryptocurrency transactions is to make them traceable to tax authorities without damaging the transparency and security of transactions. In this way, Virtual Asset Service Providers (VASPs) need to collect users’ details for submitting a monthly transactions report to tax authorities. These details include TIN/NIN, names, and addresses for accuracy purposes.
Altogether, the only aims behind this step are to ensure the coverage of crypto transactions all around the world for Nigerian users. The government wants to cover every crypto transaction under this reformed tax system to fill any loopholes in the tax system. This framework has been actively working from January 1, 2026 to onward.
This type of information about the crypto customer helps to collect taxes easily, because the UK is the best example of this system. The UK is actively following this set of patterns for ensuring tax collection from every crypto user.
Nigeria Follows the UK Model to Strengthen Crypto Tax Compliance
In the UK, users need to give their detailed information, such as users name, date of birth, National Insurance numbers or Unique Taxpayer Reference numbers for residents, and Taxpayer Identification Numbers. Therefore, Nigeria is trying to implement this system in its country for the desired outcomes.
Nigeria’s cryptocurrency market is roughly calculated to have gained $92.1 billion in value between July 2024 and June 2025, which would place it among the world’s largest. So, Nigeria expects to increase the tax-to-GDP ratio from below 10% to 18% by 2027.
This strategic step of Nigeria will definitely prove a strong boost in pushing its GDP growth. The law States, “Taxpayers engaged in virtual asset activities shall keep records and ledgers in accordance with the provisions of Article 31 of this Law and report virtual asset activities to the relevant tax authorities.”
