Nigeria is tightening its tax framework for cryptocurrency and other virtual assets as authorities seek to bring more digital-asset activity into the formal tax system and increase government revenue.

Under the country’s new tax framework, which took effect in January 2026, businesses involved in virtual-asset activities, including exchanges and other virtual asset service providers (VASPs), are subject to new registration, reporting and identification requirements.

VASPs are required to register with the tax authorities and obtain a tax identification number. The framework also requires digital-asset businesses to provide information on transactions, including the type and value of assets traded and relevant customer information.

The measures are part of a broader effort by the Nigerian government to expand the country’s tax base and improve the authorities’ ability to track economic activity in the rapidly growing digital-asset sector.

Cryptocurrency transactions can generate taxable income through activities such as trading, the sale or transfer of virtual assets, mining, staking and certain digital-asset rewards.

The authorities are also seeking greater oversight of peer-to-peer, or P2P, cryptocurrency trading, which has become an important part of Nigeria’s digital-asset market.

However, P2P transactions conducted outside regulated platforms remain difficult for authorities to monitor. Some transactions take place through informal channels, making it harder to identify participants and assess their tax obligations.

Nigeria is one of Africa’s largest cryptocurrency markets, with digital assets widely used for investment, payments and cross-border transactions. The government has increasingly sought to regulate the sector while ensuring that crypto-related economic activity contributes to public revenues.

The new tax measures therefore mark another step toward integrating Nigeria’s cryptocurrency market into the country’s formal financial and tax system.

Authorities hope that improved registration, reporting and transaction tracking will help broaden the tax base and increase revenues without preventing the development of Nigeria’s growing digital-asset industry.