{"id":104896,"date":"2026-01-13T08:08:52","date_gmt":"2026-01-13T13:08:52","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=104896"},"modified":"2026-01-13T08:08:52","modified_gmt":"2026-01-13T13:08:52","slug":"nigeria-starts-tracking-crypto-users-by-identity","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/nigeria-starts-tracking-crypto-users-by-identity\/104896\/","title":{"rendered":"Nigeria starts tracking crypto users by identity"},"content":{"rendered":"
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Nigeria has officially started strict monitoring of cryptocurrency activity. The new rules link every crypto transaction to real people and taxpayers. This change comes under the Nigeria Tax Administration Act 2025.<\/p>\n

From January 1, 2026, all crypto platforms operating in Nigeria must share user and transaction details with the Nigeria Revenue Service. They must also report the same information to the Securities and Exchange Commission. This applies to all Virtual Asset Service Providers.<\/p>\n

The new system follows a global standard called the Crypto Asset Reporting Framework. This framework also became active on January 1, 2026. It allows countries to collect and share crypto data across borders. The main goal is to stop tax evasion.<\/p>\n

By adopting this system, Nigeria now stands alongside countries like the United Kingdom. In these countries, crypto companies already collect tax linked user data and share it with authorities.<\/p>\n

The core of Nigeria\u2019s tracking system is identity verification. Two numbers are now key. These are the Tax Identification Number and the National Identification Number.<\/p>\n

The Tax Identification Number is issued by the Nigeria Revenue Service. It is used to track tax payments by individuals and businesses. It plays a major role in tax enforcement.<\/p>\n

The National Identification Number links citizens to the national biometric database. This database includes facial scans and fingerprints. It confirms a person\u2019s real world identity.<\/p>\n

Crypto platforms must now collect both numbers from users. This allows the government to connect digital asset activity directly to tax records. Authorities no longer need advanced blockchain tracking tools to follow transactions.<\/p>\n

Tax officials can now demand user data and transaction histories without advance notice. This closes loopholes that once allowed crypto profits to go unreported.<\/p>\n

Every month, exchanges must submit detailed reports. These reports must include the type of service offered. They must show the value and kind of assets traded. They must also include full identity details of users and counterparties. This includes names, contact details, tax numbers, and NIN where required.<\/p>\n

Platforms must also flag large or suspicious transactions. These alerts are shared with tax authorities and the Nigerian Financial Intelligence Unit.<\/p>\n

Crypto companies are required to store user data and transaction records for at least 7 years after the last activity.<\/p>\n

Failure to follow the rules can be costly. Companies face a \u20a610 million fine in the first month of non compliance. Additional fines apply for every month the issue continues. Regulators can also suspend or cancel licences for repeated violations.<\/p>\n

The government believes this move will help the economy. Nigeria recorded over $92.1 billion in digital asset transactions between July 2024 and June 2025. This figure reflects total value moved, not profits.<\/p>\n

Even so, officials believe taxing a small part of this activity could generate major revenue. With oil income declining and tax collection remaining low, the government is turning to the digital economy.<\/p>\n

Nigeria currently has one of the lowest tax to GDP ratios in Africa. It is under 10%. The government aims to raise this to 18% by 2027. Crypto taxation is now a key part of that plan.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Nigeria has officially started strict monitoring of cryptocurrency activity. The new rules link every crypto transaction to real people and\u2026<\/p>\n","protected":false},"author":294,"featured_media":104897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76],"tags":[3927,2979,33979],"class_list":["post-104896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-crypto","tag-nigeria","tag-top-stories"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/104896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=104896"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/104896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/104897"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=104896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=104896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=104896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}