The Nigeria Revenue Service (NRS) has directed Virtual Asset Service Providers (VASPs) and peer-to-peer (P2P) escrow operators to make a valid Tax Identification Number (Tax ID) a mandatory requirement for account activation, tightening tax compliance requirements across Nigeria’s cryptocurrency ecosystem.
This move is part of the agency’s new framework for taxing cryptocurrencies, stablecoins, tokenised assets, and other digital assets, as outlined in the Guidelines on the Taxation of Virtual Assets released on Monday.
New Tax Requirements
The guidelines introduced wider tax measures, including a provision that medium and large companies earning profits from cryptocurrency and other virtual asset transactions will be subject to a 30% corporate income tax on their crypto gains under the Nigeria Tax Act, 2025.
Individuals and entities involved in virtual asset activities are required to register for tax purposes and obtain a Tax Identification Number before carrying out taxable activities within the digital asset ecosystem.
“Any person engaged in VAs activities shall register for tax purposes and obtain a Tax ID,” the agency stated.
Integration with Existing Regulations
The requirement means crypto users, investors, and businesses operating within Nigeria’s virtual asset ecosystem are expected to have a recognised tax identity for compliance and reporting purposes.
Virtual Asset Service Providers (VASPs) — which include crypto exchanges, trading platforms, wallet service providers, and other businesses that facilitate virtual asset transactions — as well as P2P escrow operators must verify users’ tax registration before activating accounts.
This effectively integrates tax verification into the onboarding process for regulated crypto platforms operating in Nigeria, in accordance with section 8 of the NTAA.
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Broader Regulatory Efforts
The new requirement comes amid the federal government’s broader effort to strengthen oversight of Nigeria’s rapidly growing digital asset sector.
In July, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, creating a coordinated framework for the regulation of cryptocurrencies, stablecoins, tokenised assets, and other virtual assets across government agencies.
The framework is intended to improve regulatory coordination, curb fraud, and support innovation in the digital economy, with industry estimates suggesting that between 22 million and 26 million Nigerians currently own or use cryptocurrency.
Cryptocurrency has also become an important payment tool for many Nigerians, with about 40% of Nigerians using cryptocurrency for international money transfers, significantly above the global average of 11%.
The federal government has been expanding its tax administration efforts following the implementation of Nigeria’s new tax laws, with the NRS Executive Chairman Dr. Zacch Adedeji recently saying the agency is targeting N40.7 trillion in tax, petroleum royalty, and other revenue collections in the 2026 fiscal year.
As part of that effort, the NRS has introduced new tax rules for the virtual asset sector, including the requirement that medium and large companies earning profits from cryptocurrency and other virtual asset transactions will face a corporate income tax on their crypto gains.
The new crypto tax guidelines therefore represent part of a broader government effort to bring virtual asset activities more fully into Nigeria’s formal tax and regulatory framework, and it is likely that this move will have significant implications for the country’s digital economy, particularly in terms of revenue surge.
These regulations are part of a larger effort to manage the country’s economy.