Cryptocurrency continues to embed itself into Nigeria's digital economy, especially among younger demographics. But as participation grows, a recent survey reveals a troubling disconnect: the vast majority of young crypto users remain outside the formal tax system and possess little understanding of their fiscal obligations.
The survey, which drew responses from 92 individuals aged 18 to 33, found that 37 per cent currently trade or use digital assets. Yet this level of engagement has not translated into tax system integration. A striking 70.7 per cent of respondents said they do not have a Tax Identification Number, while only 22.8 per cent confirmed possession of one. Another 6.5 per cent were uncertain of their status.
This registration gap carries significant policy weight. For taxation to function effectively, taxpayers must be identifiable within the system. Where a large share of participants operates outside formal registration structures, raising compliance levels demands more than enforcement alone. It calls for simplified onboarding, targeted outreach, and deliberate engagement with these digitally native users.
Awareness of crypto-related tax obligations proved equally low across the sample. When asked about the new tax reform's implications for digital asset transactions, 64.1 per cent said they were unaware that certain cryptocurrency earnings and transactions would attract tax deductions. Meanwhile, 72.8 per cent reported that they do not understand how crypto taxes are calculated, reported, or paid. The same proportion — 72.8 per cent — acknowledged not understanding their responsibilities and obligations as crypto traders under the new law.
Perhaps most revealing, 87 per cent of respondents either did not know or were unsure which government agency holds regulatory authority over cryptocurrency and virtual asset activities in Nigeria.
These figures suggest the primary obstacle is not unwillingness to comply but a fundamental lack of understanding. A tax obligation loses practical force when individuals cannot answer basic questions: Which transactions are taxable? How are gains determined? Where should activity be reported? Who oversees the rules?
Beyond knowledge gaps, the survey captured concerns about transparency, fairness, and enforcement. Many respondents questioned how crypto activity would be tracked, how taxes would be collected, and whether the revenue generated would translate into tangible public benefits. Such concerns matter because tax compliance is shaped as much by trust in the system as by the letter of the law.
