The Nigerian government is set to implement new regulations in 2025 to track and tax cryptocurrency transactions, marking a significant shift in its approach to digital assets. This initiative aims to integrate previously anonymous crypto transactions into the formal economy, potentially reshaping Nigeria's financial landscape. Virtual Asset Service Providers (VASPs) will be required to submit detailed monthly reports to tax authorities, including transaction types, dates, volumes, and customer identification information. This move is part of Nigeria's broader strategy to increase its tax-to-GDP ratio from under 10% to 18% by 2027. The government views the cryptocurrency market as a crucial revenue source, given Nigeria's active crypto market and high peer-to-peer trading volumes. The proposed regulations will require VASPs to enhance compliance systems, potentially leading to industry consolidation. The Nigerian Securities and Exchange Commission plans to provide guidance to help VASPs adapt to these new requirements.