NRS makes Tax ID mandatory for new crypto account activations

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.

The requirement was introduced in the Guidelines on the Taxation of Virtual Assets released on Monday as part of the agency’s new framework for taxing cryptocurrencies, stablecoins, tokenised assets, and other digital assets.

The move forms part of a broader tax and regulatory overhaul of the virtual asset sector, which includes new reporting obligations for crypto businesses and higher tax compliance requirements for digital asset transactions.

The guidelines also 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.

What they are saying

The NRS said 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.

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.

The agency also clarified that 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.

• “VASPs and P2P escrow operators are required to make a valid Tax ID a precondition for account activation in accordance with section 8 of the NTAA,” the guidelines stated.

This effectively integrates tax verification into the onboarding process for regulated crypto platforms operating in Nigeria.

More details

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.
• The tax ID requirement also reflects the increasing use of digital assets in Nigeria. Industry estimates suggest that between 22 million and 26 million Nigerians currently own or use cryptocurrency, making the country one of Africa’s largest crypto markets.

Cryptocurrency has also become an important payment tool for many Nigerians. A recent cross-border payments study found that about 40% of Nigerians use cryptocurrency for international money transfers, significantly above the global average of 11%, underscoring the growing role of digital assets in cross-border transactions.

What you should know

The federal government has been expanding its tax administration efforts following the implementation of Nigeria’s new tax laws.

• NRS Executive Chairman Dr. Zacch Adedeji recently said the agency is targeting N40.7 trillion in tax, petroleum royalty, and other revenue collections in the 2026 fiscal year, reflecting a broader push to strengthen revenue mobilisation.
• 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 30% corporate income tax on their crypto gains.
• The compliance drive comes as the federal government significantly expanded public spending. President Bola Tinubu signed the 2026 Appropriation Bill into law with total expenditure of N68.32 trillion, following an upward revision of the budget earlier in the year.

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.