Nigeria has introduced a new cryptocurrency oversight model that relies on tax and identity systems rather than direct blockchain surveillance.
Under the reforms, crypto service providers must link transactions to Tax Identification Numbers and, where applicable, National Identification Numbers.
The framework took effect on 1 January under the Nigeria Tax Administration Act 2025 as part of a broad tax overhaul.
Authorities aim to improve visibility of crypto activity by connecting transactions to existing tax and income records.
Virtual asset service providers are required to submit regular reports detailing the value and nature of digital asset transactions.
These filings must include customer identification data, extending existing anti-money laundering obligations.
Tax authorities are empowered to request additional information and require long-term retention of customer and transaction records.
Officials say the approach offers a more practical alternative to costly and complex blockchain analytics.
The reforms are intended to close compliance gaps that persisted after Nigeria introduced a tax on crypto profits in 2022.
Nigeria’s model aligns with the OECD’s Crypto-Asset Reporting Framework, which also came into force this year.
The OECD lists Nigeria among countries committed to adopting the global reporting standard by 2028.