Crypto transactions are becoming more common in Nigeria, from everyday trading to business payments. As crypto use continues to grow, the government is taking steps to bring it into the country’s tax system.
With this new move, crypto transactions are no longer operating in a grey area.
What the New Law Is About
Nigeria has passed a new tax law that links crypto activity to Tax Identification Numbers (TIN) and National Identity Numbers (NIN). The idea is to ensure that crypto can be traced for tax purposes while maintaining blockchain security and integrity. The government holds crypto platforms liable rather than putting wallets on the blockchain. It makes enforcement easier and more realistic.
🇳🇬 NOW: Nigeria requires crypto transactions to be linked to Tax IDs and National IDs. pic.twitter.com/x40iwTMCl1
— Cointelegraph (@Cointelegraph) January 13, 2026
What Crypto Platforms Must Do
Exchanges and brokers have become Virtual Asset Service Providers (VASPs) with defined responsibilities. They must collect key user details before allowing people to trade.
These details include:
- Full name
- Residential address
- TIN and NIN
VASPs will file monthly reports with tax authorities. These reports show transaction volumes, values, and user details tied to crypto transactions. On top of that, platforms must flag large or suspicious trades and report them to law enforcement agencies.
Nigeria has passed a new tax law linking crypto transactions to identities via Tax Identification Numbers (TIN) and National Identity Numbers (NIN), ensuring traceability for tax purposes without compromising blockchain security. VASP are required to collect user details…
— Wu Blockchain (@WuBlockchain) January 13, 2026
If you trade on a compliant platform, your crypto transactions are now linked to your tax identity. It does not mean the government is spying on the blockchain itself. Tracking occurs only through regulated platforms. Depending on your trading or investing, you may need to declare crypto gains as income.
Why Nigeria Is Doing This
The crypto trading market in Nigeria is huge. The government intends to reduce tax evasion, increase transparency and increase revenue. A connection between crypto transactions and national IDs is a useful way to address the loopholes surrounding crypto. It also brings Nigeria up to the standards applied in the rest of the world’s major economies.
How Govt will tax Crypto.
According to the new tax reform Acts:
They plan to use “Virtual Asset Service Providers” (VASPs) ie Bybit, as mandatory informants for the tax authority.
HOWEVER, it’s a wide net because:
1 Your Exchange Must Report You: Every exchange (Binance,… pic.twitter.com/4gZxY9dip2
— Tax Explained.NG🇳🇬 (@Taxexplainedng) January 14, 2026
Conclusion
By connecting digital resources to TIN and NIN transactions, the government is introducing crypto transactions into the official tax system. Nigeria takes responsibility for the crypto growth that is responsible, transparent, and legal.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
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