Nigeria has officially brought virtual currencies, including cryptocurrencies, under its tax umbrella as part of the country’s sweeping fiscal reform, the Presidential Fiscal Policy and Tax Reforms Committee has confirmed. Taiwo Oyedele, the committee’s chairman, disclosed the new measure during an online lecture organized by the Capital Market Academics of Nigeria (CMAN) on Wednesday, signaling a major step toward regulating Nigeria’s digital economy.
Virtual currencies are digital or electronic forms of value that exist exclusively online and are typically issued by private developers or virtual communities. Some are platform-specific, while convertible virtual currencies—like Bitcoin and other cryptocurrencies—can be exchanged for real-world money. Oyedele emphasized that, under the new law, such digital assets will now be subject to taxation, aligning Nigeria with global trends in digital asset regulation.
Despite the new taxation on virtual currencies, Oyedele highlighted a key opportunity for young investors: capital market gains remain exempt from tax. He described this exemption as a strategic tool to encourage youth participation in 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?” Oyedele said.
Oyedele also stressed the need to counter misinformation that has discouraged Nigerians from investing in the capital market. He pointed out that false narratives about taxation have caused some young investors to shy away from regulated markets, affecting livelihoods in the short term. “Real people make bad decisions when misinformed. Narratives drive sentiments, and the latter creates our reality,” he explained, urging Nigerians to make informed investment decisions.
To ensure clarity and public understanding of the new tax law, the committee is partnering with the National Orientation Agency (NOA) to translate the law into local languages and educate citizens, especially at the grassroots level. The law also mandates government accountability for tax refunds and requires Nigerians, including remote workers earning from abroad, to declare their incomes, strengthening the nation’s tax compliance framework.
source: nairametrics