Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, recently revealed that Nigeria’s new tax law will subject virtual currencies, including cryptocurrencies, to taxation. He made this announcement during an online public lecture organised by the Capital Market Academics of Nigeria (CMAN).
Virtual currency, Oyedele explained, refers to forms of digital value that exist only online, often issued by private developers or virtual communities. Some currencies are only usable within a particular platform, while others like most cryptocurrencies, are convertible and can be exchanged for real-world money.
Despite this new tax provision, the reform law exempts capital market gains from taxation. According to Oyedele, this creates a strategic opportunity to draw young investors into regulated financial markets. He pointed out that misinformation has scared many young Nigerians away from 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.” He added that “real people make bad decisions when misinformed. Narratives drive sentiments, and the latter creates our reality.”
Oyedele further expressed concern that the market is vulnerable to short-term distortions fueled by false information. He stressed:
“The market is often right in the long run, but some investors may have lost their livelihood in the short run.”
On tax administration, the new law mandates that the government reserve a portion of its revenues specifically for tax refunds, making it more accountable and efficient. As Oyedele put it,
“In the new tax law, the government will no longer share all the revenue generated.”
To ensure Nigerians understand the reform, his committee is working with the National Orientation Agency (NOA) to translate the law into local languages. This partnership aims to raise awareness at the grassroots level so that people fully grasp their rights, obligations, and the opportunities created by the tax changes.
Oyedele also highlighted the government’s global reach in enforcing the law: Nigeria has signed agreements with more than 100 countries to collect data on remote workers, helping to enforce tax remittance. He noted that all remote workers who are tax residents must declare their income, regardless of where the company they work for is based.
By taxing virtual currencies, Nigeria is tapping into the booming $90+ billion crypto transaction market, helping boost tax revenue as part of a broader push to raise the country’s tax-to-GDP ratio from under 10% toward an 18% target by 2027.
