In a significant move for the nation's digital economy, Nigeria has officially announced that virtual currencies will now be subject to taxation under its newly reformed fiscal framework. The landmark declaration was made by the Presidential Fiscal Policy and Tax Reforms Committee.
Official Announcement on Virtual Currency Taxation
Taiwo Oyedele, the committee's chairman, revealed this pivotal shift in policy during an online public lecture organized by the Capital Market Academics of Nigeria. The event took place on Wednesday, 21 November 2025.
Oyedele provided crucial details, explaining that the revamped law imposes clear tax liabilities on digital currencies, a category that includes popular cryptocurrencies. However, in a strategic move to steer investment, he simultaneously highlighted that capital market gains are exempted from taxation for virtually all investors.
Promoting Regulated Markets Over Crypto
During his address, Oyedele posed a critical question to the public, aiming to redirect the investment focus of the youth. “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 that it is exempted?” he stated.
He expressed deep concern that a wave of widespread misinformation is actively discouraging many young Nigerians from investing in the formal capital market. A key misconception he identified is the false belief that capital gains are taxed at a steep 30 percent rate. Oyedele argued that such incorrect narratives are powerful drivers of poor investment choices.
“Real people make bad decisions when misinformed. Narratives drive sentiments, and the latter creates our reality,” he warned, underscoring the tangible impact of false information on financial behavior.
Ensuring Fiscal Accountability with Tax Refunds
Beyond the taxation of digital assets, Oyedele outlined another cornerstone of the new law designed to ensure fiscal responsibility. He confirmed that the legislation mandates the government to set aside funds specifically for tax refunds.
This measure ensures that not all government revenue will be shared indiscriminately. Instead, a dedicated portion will be reserved to honor legitimate refund claims from taxpayers, introducing a new layer of financial accountability to the system.
