Nigeria Implements Mandatory Tax Identification Measures for Digital Asset Transactions

PANews, January 13 – According to Finance Feeds, on January 1, 2026, the Nigerian government will officially launch a comprehensive regulatory reform requiring all cryptocurrency transactions to be linked to real-world identities through the Taxpayer Identification Number (TIN) and National Identification Number (NIN). This initiative, led by the newly renamed Nigerian Revenue Service (NRS), is part of the 2025 Nigerian Tax Administration Act. By integrating these identity markers, the government aims to bring the country’s vast informal cryptocurrency economy into the formal tax system, creating a traceable and transparent ecosystem for digital wealth. Now, Virtual Asset Service Providers (VASPs) operating in the country must legally verify customers’ tax identities before activating accounts or providing services.

According to the new guidelines coming into effect in 2026, registered cryptocurrency exchanges will face strict data collection requirements and heavy fines for non-compliance. These platforms must submit monthly transaction reports to the Nigerian Revenue Service, and failure to report these details will result in an administrative fine of 10 million naira for the first month of default, followed by a recurring fine of 1 million naira for each subsequent month. In addition, the Securities and Exchange Commission has warned that licenses may be revoked for exchanges that fail to meet these transparency standards.