Nigeria has introduced a new tax system for cryptocurrencies under the Nigerian Tax Administration Act (NTAA) 2025. This change means people can no longer trade digital currencies anonymously. Starting in 2026, everyone must identify themselves to the tax authorities.
This isn’t just a minor change; it represents a major shift in how digital money operates in Nigeria, the largest economy in Africa. For years, the Nigerian cryptocurrency market has been chaotic and mostly hidden from government oversight. With the NTAA 2025, the government is no longer resisting the trend; instead, they are taking control to benefit from it.
To understand why this is happening now, look at the numbers. They are shocking. Between July 2024 and June 2025, Nigerians traded about $92.1 billion in cryptocurrency.
For context, that amount is greater than the GDP of many African countries combined. The government wants to raise the country’s tax-to-GDP ratio from just 10% to 18% by 2027. Because of this, ignoring a $92 billion economy is no longer an option. The plan has changed from “ban it” to “bill it.”
How the Crypto Tracking System Will Work
The government is not trying to break the encryption of the blockchain. Instead, they are targeting the gatekeepers. Under the new rules, Virtual Asset Service Providers (VASPs), like Binance, Quidax, Yellow Card, and even your local P2P brokers, are now agents of the state.
Every transaction must include your Tax Identification Number (TIN) and National Identification Number (NIN). These platforms must keep your data for seven years. Any transaction that seems “large” or “suspicious” will be reported directly to the Nigerian Financial Intelligence Unit (NFIU).
The government is serious about enforcing these rules. If platforms do not comply, they face severe penalties. Exchanges that operate without following the rules could be fined up to ₦10 million or lose their operating license.
This move puts Nigeria in line with the OECD’s Crypto Asset Reporting Framework (CARF), meaning that we are now part of a global system that can track assets across borders.
What This Means For the Average Trader
Your crypto gains are now recognised as taxable income. If you make a profit on Solana or sell an NFT for a gain, be ready to pay taxes. The days of treating your crypto profits as untaxed money are over.
The Nigeria Crypto Tax Law 2026 has both pros and cons. It makes the industry more legitimate, which could attract more institutional investment and improve banking integration. However, it also takes away the privacy that many people liked about crypto.
