Nigeria has introduced a new cryptocurrency taxation framework under the Nigerian Tax Administration Act (NTAA) 2025, set to take full effect in 2026.
The law formally integrates digital assets into the national tax system by linking crypto transactions to Tax Identification Numbers (TINs) and National Identification Numbers (NINs), marking a significant step toward regulating the country’s rapidly expanding crypto market.
Under the new framework, all cryptocurrency transactions must be tied to verified identities. Virtual Asset Service Providers (VASPs), including exchanges and brokers, are required to register with tax authorities, conduct strict Know Your Customer (KYC) checks, and submit monthly transaction reports.
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They must also retain customer and transaction records for a minimum of seven years, while large or suspicious transactions are to be reported to the Nigerian Financial Intelligence Unit (NFIU). Non-compliance may attract fines of up to ?10 million or lead to license revocation.
Rather than monitoring blockchain activity directly, the government will rely on VASPs to track and report crypto transactions. This approach enables regulatory oversight while maintaining blockchain security and aligns Nigeria with global standards such as the OECD’s Crypto Asset Reporting Framework (CARF), effectively positioning the country within the international crypto compliance system.
This new cryptocurrency taxation framework comes as Nigeria has become one of Africa’s top crypto adopters according to Chainalysis 2025 Global Adoption Index.
The West African country remains one of the fastest-growing cryptocurrency markets globally, with transaction volumes estimated at $92.1 billion between July 2024 and June 2025.
Recall that in February 2021, the Central Bank of Nigeria (CBN) directed banks and other financial institutions to stop facilitating crypto-related transactions. This effectively cut off crypto exchanges from the formal banking system, even though crypto trading itself was not made illegal for individuals. The move was driven by concerns around money laundering, terrorism financing, fraud, and consumer protection.
However, this position began to soften in late 2023, when the CBN issued new guidelines allowing banks to open and operate accounts for Virtual Asset Service Providers (VASPs), under strict conditions. This marked a shift from an outright restriction to a regulated engagement model.
The new crypto tax framework under the NTAA 2025 (effective 2026) builds on this regulatory shift. Instead of banning crypto activity, the government is now moving toward formalization, oversight, and taxation, bringing digital assets into the official financial and tax system.
Notably, profits made from crypto deals in Nigeria won’t attract the old 10% capital gains tax. Instead, they will be treated as chargeable gains under personal income tax, with rates climbing as high as 25%. This new rule will put crypto earnings squarely in the same tax bracket as other personal and corporate incomes.
With the high rate of crypto adoption in the country, taxation of crypto related activitives could generate substantial revenue, supporting the government’s goal of increasing its tax-to-GDP ratio from below 10% to 18% by 2027 and reducing dependence on oil revenues.
Outlook
The Nigeria Crypto Tax Law 2026 establishes a transparent and enforceable structure that connects digital assets to real-world identities. It is expected to enhance market credibility, encourage formal participation, and support long-term sector growth reshaping the country’s cryptocurrency landscape while strengthening government revenue generation.