The Nigerian government is set to implement new regulations in 2025 to tax cryptocurrency transactions, marking a significant shift in its approach to digital assets. This initiative aims to integrate previously anonymous crypto activities 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 trading environment. The new regulations will necessitate robust compliance systems from VASPs, potentially leading to industry consolidation. As Nigeria embarks on this regulatory path, it may serve as a model for other developing nations seeking to balance digital innovation with fiscal policy.