The Nigeria Revenue Service has directed Virtual Asset Service Providers and peer-to-peer escrow operators to make a valid Tax Identification Number a compulsory requirement for account activation, in a move aimed at strengthening tax compliance across Nigeria’s cryptocurrency sector.

The directive is contained in the Guidelines on the Taxation of Virtual Assets released on Monday, forming part of the agency’s new tax framework covering cryptocurrencies, stablecoins, tokenised assets and other digital assets.

The directive is part of a broader tax and regulatory overhaul of Nigeria’s virtual asset sector, introducing stricter reporting obligations for cryptocurrency businesses and tougher tax compliance requirements for digital asset transactions.

Under the new guidelines, medium and large companies that generate profits from cryptocurrency and other virtual asset transactions will be subject to a 30 per cent corporate income tax on their crypto-related gains in line with the Nigeria Tax Act, 2025.

The Nigeria Revenue Service said individuals and entities engaged in virtual asset activities must register for tax purposes and obtain a Tax Identification Number before undertaking any taxable transactions 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 cryptocurrency users, investors and businesses operating in Nigeria’s virtual asset sector must possess a valid tax identity to meet compliance and reporting obligations.

The agency also clarified that Virtual Asset Service Providers, including cryptocurrency exchanges, trading platforms, wallet service providers and other businesses facilitating virtual asset transactions, as well as peer-to-peer escrow operators, must verify users’ tax registration before activating their 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.

The requirement effectively makes tax verification a mandatory part of the onboarding process for regulated cryptocurrency platforms operating in Nigeria.

The new requirement is part of the Federal Government’s broader effort to strengthen regulatory oversight and improve tax compliance across Nigeria’s rapidly expanding digital asset sector.

In July, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, establishing a unified framework for the regulation of cryptocurrencies, stablecoins, tokenised assets and other virtual assets across government agencies.

The framework is designed to strengthen regulatory coordination, combat fraud and promote innovation within the digital economy.

The Tax Identification Number requirement also reflects the growing adoption of digital assets in Nigeria. Industry estimates indicate that between 22 million and 26 million Nigerians own or use cryptocurrencies, making the country one of Africa’s largest cryptocurrency markets.

Cryptocurrency has also emerged as a key payment channel for many Nigerians.

A recent cross-border payments study found that about 40 per cent of Nigerians use cryptocurrency for international money transfers, far exceeding the global average of 11 per cent, highlighting the growing role of digital assets in cross-border payments.

The Federal Government has been stepping up efforts to strengthen tax administration following the implementation of Nigeria’s new tax laws, with the latest measures extending tax compliance requirements to the country’s expanding virtual asset ecosystem.