New Act: National, Tax Identification Numbers Now Mandatory For Crypto, Bank Transactions

Beginning from January 2026, Nigerians volition beryllium required to supply their afloat details — including National Identification Number (NIN), Tax Identification Number (Tax ID), telephone number, and address, among others — to entree services from Virtual Assets Service Providers (VASPs) for crypto and different virtual plus trades.

This caller requirement, embedded successful the Nigeria Tax Administration Act, 2025, and the Nigeria Tax Act, 2025, is designed to plug loopholes successful the fiscal strategy and tighten regulatory oversight crossed some the ceremonial and integer economy.

The country’s taxation reforms besides marque it mandatory for anyone earning an income to person a Tax ID to entree services from immoderate fiscal institution, security company, oregon stockbroking firm.

VASPs are firms oregon individuals licensed to connection services specified arsenic the exchange, transfer, custody, oregon absorption of integer assets—including cryptocurrencies, tokens, and integer collectables—on behalf of their clients.

This comes arsenic President Bola Ahmed Tinubu directed fiscal and superior marketplace regulators to fortify oversight connected utilizing stablecoins and integer currencies successful Nigeria. The Nigeria Tax Administration Act, 2025, 1 of 4 acts gazetted pursuing reforms successful the country’s taxation laws, is portion of efforts to grow the nation’s taxation nett and deepen gross collection.

Consequently, it is present compulsory for Nigerians to supply some their National Identification Number (NIN) and Tax Identification Number (Tax ID) for each crypto-related dealings and accepted banking transactions.

Defaulting VASPs volition look a N10 cardinal sanction, with an further N1 cardinal for each period of non-compliance, and the Securities and Exchange Commission (SEC) whitethorn revoke their license.

Section 8(2) of the Nigeria Tax Administration Act, 2025, specifically states that:

“A idiosyncratic engaged successful banking, insurance, stock-broking, oregon different fiscal services successful Nigeria shall guarantee that each taxable idiosyncratic provides a Tax ID.”

According to the act, a taxable idiosyncratic is anyone “who carries retired economical enactment successful a spot oregon a idiosyncratic exploiting tangible oregon intangible spot for the intent of obtaining income therefrom by mode of commercialized oregon business, oregon an bureau of Government acting successful that capacity.”

Thus, immoderate idiosyncratic oregon entity carrying retired economical enactment successful Nigeria, oregon exploiting carnal oregon intelligence spot to gain income done commercialized oregon services, becomes taxable — irrespective of whether the idiosyncratic is nonmigratory wrong the country.

Also, Section 25(1) of the Nigeria Tax Administration Act, 2025 states:

“A taxable idiosyncratic engaged successful services related to the exchange, custody, oregon absorption of virtual assets arsenic a Virtual Asset Service Provider (VASP) shall, with oregon without notice, successful summation to the returns provided successful sections 11 and 13 of this Act, taxable to the applicable taxation authorization the accusation prescribed successful subsection (2).”

The monthly returns that VASPs indispensable taxable are expected to see a statement of the virtual plus work (exchange, sale, oregon transportation of virtual assets), the transaction date, the benignant and worth of the virtual assets involved, and the income worth of the virtual assets.

They are besides required to supply the customer’s name, address, telephone number, email address, and Tax ID, including the customer’s National Identification Number, arsenic good arsenic the aforesaid details for immoderate counterparty progressive successful the transaction — on with immoderate different particulars prescribed by the applicable taxation authority.

It further states:”Notwithstanding subsections (1) and (2), the applicable taxation authorization whitethorn astatine immoderate time, with oregon without notice, petition a VASP to taxable further accusation successful a prescribed form, connected a specified date.”

Beyond compliance astatine onboarding, banks volition record quarterly reports to taxation authorities. These reports indispensable see details of caller customers, existing ones whose cumulative monthly transactions transcend N25 cardinal for individuals and N100 cardinal for corporates.