Nigeria Targets Crypto Tax Gap with New 2026 Reporting Regime

Effective January 1, 2026, Nigeria has introduced a new tax monitoring system for cryptocurrency transactions under the Nigeria Tax Administration Act 2025. Signifying Abuja's desire to integrate its rapidly expanding digital asset industry under international tax transparency rules, the framework is consistent with the OECD's Crypto-Asset Reporting Framework. This decision formally brings Nigeria's predicted 92 billion USD bitcoin market (July 2024–June 2025) under the tax net so as to reduce tax avoidance and increase government income.

According to the regulations, on a monthly basis, Virtual Asset Service Providers (VASPs) have to compile and disclose thorough consumer and transaction information to tax authorities. Required information includes Tax Identification Numbers (TINs), National Identification Numbers (NINs), names, addresses, transaction dates, asset types and values, and sales amounts. VASPs must likewise alert both tax authorities and the Nigerian Financial Intelligence Unit of questionable or significant transactions while keeping comprehensive logs for seven years and regulators empowered to demand more information without prior notification.

Strict penalties support compliance: non-compliant exchanges risk license suspension in addition to a 10 million NGN (about 7,014 USD) fine in the first month of violation and an additional 1 million NGN (about 702 USD) for each succeeding month. These steps build on reforms from April 2025 that categorized cryptocurrencies as securities under the Investments and Securities Act, hence reducing the regulatory perimeter surrounding digital assets. Together they represent a clear change from casual crypto activity to a severely monitored, tax-accountable environment.