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Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed that virtual currencies, including cryptocurrencies, will now fall under Nigeria’s tax framework. He made the disclosure during an online public lecture organised by the Capital Market Academics of Nigeria (CMAN) on Wednesday.
Oyedele explained that 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.
“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 on our capital market are better and it is exempted?” Oyedele said. He noted that the tax exemption for capital market gains creates a strategic opportunity to encourage young investors to participate in regulated financial markets.
He lamented that widespread misinformation has discouraged youth participation in the 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.”
Oyedele also stressed that the market remains vulnerable to short-term distortions caused by false information, adding, “The market is often right in the long run, but some investors may have lost their livelihood in the short run.”
The new tax law also includes provisions for tax refunds, with funds specifically reserved to honour legitimate claims, ensuring transparency and accountability. “In the new tax law, the government will no longer share all the revenue generated,” he said.
To improve public understanding of the reforms, the committee is collaborating with the National Orientation Agency (NOA) to translate the law into local languages and promote awareness at the grassroots level.
Oyedele emphasized that the partnership is crucial for ensuring Nigerians fully comprehend their rights, obligations, and the opportunities within the reformed tax system.
