The Presidential Fiscal Policy and Tax Reforms Committee has announced that virtual currencies which includes cryptocurrencies will now fall under Nigeria’s tax net as part of the country’s sweeping new fiscal reform legislation.
Committee chairman, Taiwo Oyedele revealed this during an online public lecture hosted by the Capital Market Academics of Nigeria (CMAN) which was monitored by Fintechinsights on Wednesday.
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Virtual currencies, he explained, are digital units of value that exist entirely online and are often created by private developers or virtual communities. While some operate only within specific platforms, convertible virtual currencies such as cryptocurrencies can be traded for fiat money.
Capital market gains remain tax-exempt
Despite the new tax provision covering virtual currencies, Oyedele noted that gains from capital market investments are explicitly exempt from taxation. He described the measure as a deliberate incentive to draw younger investors into regulated financial markets.
“Virtual currency under the new law is liable to tax. Capital market gains for virtually everybody are exempted, so why are we not telling our young people that the returns in our capital market are better and tax-free?” he said.
He argued that persistent misinformation has discouraged young Nigerians from investing in the capital market.
“If you ask many young people today to invest, they’ll insist there’s a 30% tax on it but that’s simply not true,” he said. “People make bad decisions when misinformed. Narratives shape sentiments, and sentiments influence reality.”
According to Oyedele, false narratives often create short-term disruptions in the market, even though “the market tends to correct itself over time but some investors suffer losses before that happens.”
Reform law introduces mandatory tax refund funds
Oyedele also pointed to new provisions requiring government to ring-fence funds specifically for tax refunds, a move he said would improve accountability and ensure that legitimate claims are honoured without delay.
“In the new tax law, the government will no longer distribute all the revenue collected,” he said. “A portion must be set aside strictly to meet refund obligations.”
Government pushes for broader public awareness
To better educate Nigerians on the updated tax system, the committee is partnering with the National Orientation Agency (NOA) to translate the reform law into major Nigerian languages and expand grassroots awareness.
He emphasised that the collaboration is crucial for helping citizens understand their rights, responsibilities, and the opportunities created by the reforms.
In a related development, Fintechinsights recalls that Oyedele recently disclosed that Nigeria has signed agreements with more than 100 countries to access data on remote workers, part of its effort to enforce tax compliance in the digital economy.
Speaking at a webinar organised by the NOA last week, he clarified that Nigerians earning income remotely, regardless of employer or location must self-declare their earnings for tax purposes starting from January 2026.
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