The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has announced that virtual currencies will now be subject to tax under Nigeria’s new tax reform framework.
He made this known during an online public lecture organised by the Capital Market Academics of Nigeria, where he explained that the updated law was designed to bring clarity to emerging digital financial activities.
According to Oyedele, virtual currency refers to digital or electronic value that exists solely online without any physical form. He noted that such currencies are often created and managed by private developers or specific online communities. While some are used only within those communities, others, like cryptocurrencies, can be exchanged for real-world money, making them significant enough to fall under the country’s tax net.
He further explained that the new tax reform exempts capital market gains from taxation, a move he believes should encourage more young Nigerians to invest in formal financial markets. Oyedele urged stakeholders to intensify awareness campaigns that highlight the benefits of long-term investment, especially when compared with cryptocurrency trading and gambling.
The committee chairman warned that misinformation is discouraging young people from exploring opportunities in the capital market. He noted that many youths wrongly assume that capital market returns attract a 30 percent tax, a belief he described as false and harmful. According to him, “real people make bad decisions when misinformed,” stressing that inaccurate information can easily mislead potential investors.
Speaking on tax refunds, Oyedele said the new law mandates the government to set aside funds specifically for refund purposes. He explained that this provision would ensure transparency and accountability, adding that under the new system, the government will no longer distribute all revenue collected without making room for legitimate refunds.
To ensure wider understanding of the tax reforms, Oyedele revealed that the committee is collaborating with the National Orientation Agency. The plan, he said, is to translate key aspects of the new tax law into local languages so that people at the grassroots can clearly understand their rights and obligations under the updated fiscal framework.
