Nigeria has introduced a new tax law mechanism that could eventually make cryptocurrency transactions traceable using national identification (IDs).
This is in accordance with the Nigerian Tax Administration Act (NTAA) 2025, which states that the government plans to track crypto transactions in real time using Tax Identification Numbers (TINs) and National Identification Numbers (NINs).
A TIN number is a unique identifier issued to Nigerians and businesses by the Nigeria Revenue Service and the Joint Revenue Board. It lets tax authorities track individuals and organizations for tax administration, compliance, and enforcement.
NIN, on the other hand, is the national identifier that links individuals to personal biometric information, such as fingerprints and facial data, in the National Identity Database.
Under the new NTAA framework, all registered Virtual Asset Service Providers will be mandated to collect both TIN and NIN data and report them alongside customer transaction records.
As a result, the Nigerian government will be able to trace crypto activity back to real people and their tax records without relying on expensive, invasive blockchain surveillance infrastructure. By linking it to national IDs, crypto flows can now be matched with income declarations and tax records.
Nigeria Moves to Formalize Crypto Rules
Nigeria’s financial regulator announced last year that it is considering a bill to include crypto taxation in its regulatory framework.
Additionally, Nigeria’s approach aligns with developments under the Crypto-Asset Reporting Framework (CARF), an OECD initiative aimed at global tax transparency.
According to Chainalysis data, Nigeria has become one of Africa’s top cryptocurrency adopters, with the nation’s crypto market estimated to have gained $92.1 billion in value between July 2024 and June 2025. This makes the country one of the most active crypto hubs globally.
Therefore, even a fraction of that sum, once taxed, could generate massive income for the country.
