Nigeria has entered a new era of cryptocurrency regulation. As of January 1, 2026, all crypto transactions in the country must be linked to a Tax Identification Number (TIN) and National Identification Number (NIN). For the millions of Nigerians in the diaspora who use crypto for remittances, investments, or trading, these changes have significant implications.
The New Regulatory Framework
Under the Nigeria Tax Administration Act (NTAA) of 2025, the government has introduced comprehensive compliance requirements for cryptocurrency users and platforms. This marks a significant shift from the uncertain regulatory environment that characterised previous years, when the Central Bank of Nigeria (CBN) had instructed banks not to work with crypto exchanges.
The key requirements include mandatory NIN-TIN linkage for all crypto wallets, regular data submission by exchanges to Nigerian authorities, and records of all deposits, trades, and transfers being reported to regulators.
What This Means for Binance Users
Binance, the world's largest cryptocurrency exchange, no longer supports direct naira services in Nigeria. In 2024, the platform stopped all naira deposits and withdrawals, with remaining naira balances converted to stablecoins. However, many Nigerians continue to hold crypto on the platform and trade through peer-to-peer methods.
Even for Nigerians abroad using Binance, any transaction connected to Nigeria must now be tied to NIN and TIN. Exchanges are expected to collect this data as part of their legal obligations, and failure to comply could result in penalties or loss of operating licences.
Why This Matters for Diaspora Nigerians
For Nigerians living abroad, cryptocurrency has become an increasingly popular method for sending money home, bypassing traditional remittance fees that can exceed 5-7% of the transfer amount. The new regulations mean that even diaspora users must ensure their Nigerian identification documents are in order.
If you earn profits from cryptocurrency trading connected to Nigeria, you may now need to include those gains as part of your taxable income under Nigerian law. This is particularly relevant for those who maintain Nigerian tax residency or have significant assets in the country.
Steps to Stay Compliant
First, ensure you have a valid National Identification Number. According to the Nigerian Revenue Service, your NIN is also valid as your Tax Identification Number. If you do not have an NIN, you can enrol at accredited NIMC centres abroad or during your next visit to Nigeria.
Second, keep records of all your cryptocurrency transactions, including dates, amounts, and counterparties. This documentation will be essential if you need to demonstrate compliance with Nigerian tax authorities.
Third, consider consulting with a tax professional who understands both Nigerian regulations and the tax laws of your country of residence. Cryptocurrency taxation can be complex, especially for those with cross-border obligations.
The Bigger Picture
Nigeria's move to regulate cryptocurrency reflects a global trend toward bringing digital assets into formal financial systems. While some users may view these requirements as burdensome, they also signal that the government is taking crypto seriously as a legitimate financial instrument rather than seeking to ban it outright.
For diaspora Nigerians, staying informed and compliant is essential. The penalties for non-compliance can be significant, and the regulatory environment is likely to continue evolving as authorities gain more experience with digital asset oversight.
Sources: Nigerian Tribune, Nigeria Tax Administration Act 2025, Central Bank of Nigeria