Nigeria’s ongoing fiscal reforms have taken a significant step toward modernising the nation’s tax architecture, as virtual currencies — including cryptocurrencies and other forms of digital assets — are now officially taxable under the country’s updated tax framework. This clarification was made by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a virtual public lecture organised by the Capital Market Academics of Nigeria (CMAN) on Wednesday.
Oyedele explained that the inclusion of virtual currencies within the nation’s tax net aligns with global trends, where digital assets increasingly represent substantial sources of income, investment, and cross-border financial transactions. He defined virtual currency as a form of digital value created and maintained electronically, typically issued by private organisations or online networks. While many digital currencies operate within closed platforms, convertible virtual currencies—such as cryptocurrencies—allow users to trade them for actual money, making them relevant to national tax systems.
Capital Market Gains Remain Exempt from Taxation
Despite the expanded tax coverage that now includes virtual currencies, Oyedele emphasised that gains from Nigeria’s capital market remain exempt from taxation for the vast majority of investors. He described this as a deliberate incentive aimed at attracting more young Nigerians into structured, regulated investment channels.
According to him, a widespread misconception has discouraged young people from participating in stocks and other regulated investment instruments. “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 tax-exempt?” he asked.
He stressed that misinformation has led to poor financial decisions. Many young Nigerians, he noted, wrongly believe that a flat 30% tax applies to capital market gains. This misconception undermines investor confidence and contributes to avoidable short-term losses driven by fear, rumours, and speculative pressure.
“The market is often right in the long run,” Oyedele added, “but some investors may lose their livelihood in the short run when they react to misinformation.”
New Law Introduces a Structured Tax Refund System
A major highlight of Nigeria’s reformed tax law is the establishment of a formal mechanism for tax refunds — a practice largely absent in previous frameworks. Oyedele revealed that the new law mandates the government to set aside a portion of all tax revenue specifically for refund obligations. This change, he said, will strengthen public trust in the tax administration and ensure fairness, particularly for businesses that frequently encounter withholding tax challenges or excess deductions.
Committee Intensifies Public Sensitisation
To address widespread ignorance of tax policies and citizens’ rights, the Tax Reforms Committee is partnering with the National Orientation Agency (NOA) to translate the new tax law into several local languages. This initiative aims to ensure that Nigerians — especially those at grassroots levels — are well informed about their rights, obligations, and available benefits under the reformed tax system.
Oyedele said the awareness drive is critical, as tax compliance and public confidence can only improve when citizens clearly understand the rules and how they apply to their daily lives.
Nigeria Joins Global Effort to Tax Remote Work
In addition to virtual currency taxation, Oyedele noted that Nigeria has entered into data-sharing agreements with more than 100 countries. This collaboration allows Nigerian authorities to access income data for citizens engaged in remote work with foreign employers. The goal, he said, is to ensure transparency and improve compliance among digital economy workers, freelancers, and online service providers.
He reiterated that all remote workers residing in Nigeria are required to declare their income, regardless of where their employer or client is based.
