Research Article

Cryptocurrency Transactions, Tax Compliance and Regulatory Frameworks in Nigeria

Peters Ade Sanni1*, Ruth Anyalewa Haruna Ph.D2
1 Kogi State Polytechnic, Lokoja
2 Kogi State Polytechnic
* Corresponding author: sannipeters@gmail.com
Published: Jul, 2026
Pages: 25-43

Abstract

Cryptocurrency growth in Nigeria offers opportunities but is constrained by weak reporting, decentralization, and limited capacity, affecting compliance and revenue. This study examined the effects of cryptocurrency transactions and regulatory frameworks on tax compliance in Nigeria. Using a cross-sectional survey design, data were collected from 400 respondents comprising cryptocurrency users, traders, MSME owners, VASP staff, tax consultants, and tax officials to assess transaction behaviours, compliance patterns, and perceptions of tax education, enforcement, technology infrastructure, and regulatory frameworks. Descriptive analyses revealed very high engagement in cryptocurrency activities alongside moderate levels of tax compliance. Results from the first regression model showed that cryptocurrency transaction activity had a significant positive effect on tax compliance (B = 0.210, t = 2.917, p = 0.004), explaining 2.3% of the variance. This indicates that more active cryptocurrency users tend to exhibit greater adherence to tax obligations. The second regression model demonstrated that regulatory frameworks, tax education, enforcement, and technology infrastructure each exerted significant positive influences on tax compliance, collectively explaining 15.3% of the variance (R² = 0.153). These findings underscore the critical role of institutional measures, particularly enforcement and digital infrastructure in strengthening voluntary compliance within the cryptocurrency ecosystem. The study concludes that both behavioural engagement in cryptocurrency and robust institutional support are essential for improving tax compliance in Nigeria's digital asset sector. It recommends enhanced tax education programs, clearer regulatory guidelines, stronger enforcement mechanisms, and investment in digital monitoring infrastructure to integrate cryptocurrency activities into effective tax administration. The findings provide evidence-based insights for policymakers seeking to strengthen tax governance in a rapidly evolving financial landscape.

Keywords

Cryptocurrency Transactions Tax Compliance Regulatory Frameworks Tax Education Enforcement Digital Infrastructure Nigeria

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How to Cite

Sanni, P. A., & Ph.D, R. A. H. (2026). Cryptocurrency Transactions, Tax Compliance and Regulatory Frameworks in Nigeria. Nigerian Accounting Horizon Journal, 11(1), 25-43.

P. A. Sanni, and R. A. H. Ph.D, "Cryptocurrency Transactions, Tax Compliance and Regulatory Frameworks in Nigeria," Nigerian Accounting Horizon Journal, vol. 11, no. 1, pp. 25-43, July 2026.

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