The Presidential Fiscal Policy and Tax Reforms Committee has disclosed that virtual currencies, including cryptocurrencies, will be subject to taxation under Nigeria’s new tax reform framework.
Chairman of the committee, Taiwo Oyedele, made the disclosure during an online public lecture organised by the Capital Market Academics of Nigeria (CMAN) on Wednesday.
Virtual currency refers to a digital or electronic form of value that exists solely online and is typically issued by private developers or virtual communities. While some are restricted to specific platforms, convertible virtual currencies—such as cryptocurrencies—can be exchanged for real-world money.
Capital market gains are exempted from tax
Oyedele clarified that despite the new tax provisions covering virtual currencies, capital market gains have been exempted from tax, creating what he described as a strategic opportunity to attract young investors to regulated financial markets.
“Virtual currency under the new law is liable to tax. Capital market gains for virtually everybody is exempted, so why are we not telling our young people that the returns on our capital market are better and it is exempted?” he said.
He lamented that misinformation has discouraged many young Nigerians from participating in the capital market.
“If you go and ask any young person on the street now to invest in the market, he or she will tell you that there is 30% tax on it, and that is misinformation. Real people make bad decisions when misinformed. Narratives drive sentiments, and the latter creates our reality.”
According to him, the market remains vulnerable to short-term distortions caused by false information, stressing that “the market is often right in the long run, but some investors may have lost their livelihood in the short run.”
New law provides for tax refunds
Oyedele also highlighted provisions in the new tax law that mandate the government to set aside funds specifically for tax refunds, ensuring greater accountability and efficiency in the system.
“In the new tax law, the government will no longer share all the revenue generated,” he added, explaining that funds must be reserved to honour legitimate refund claims.
Committee moves to boost public awareness
To improve public understanding of the tax reform measures, the committee is partnering with the National Orientation Agency (NOA) to translate the law into local languages and ensure broader awareness, especially at the grassroots level.
He said the collaboration was essential to ensure Nigerians fully grasp their rights, obligations, and the opportunities within the reformed tax system.
What you should know
- Oyedele had also revealed that Nigeria has entered into agreements with over 100 countries to gather data of remote workers in a bid to enforce tax remittance.
- Speaking during a webinar hosted by the National Orientation Agency last week, Oyedele addressed concerns about taxation in the digital economy, particularly for remote workers and online income earners.
- Oyedele noted that, regardless of the company or country, every remote worker in Nigeria is obligated to declare their income by themselves.
