November 20, (THEWILL) — The Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, has announced that virtual currencies, including cryptocurrencies, will now be liable to tax under Nigeria’s revised tax system.
Speaking at an online lecture hosted by the Capital Market Academics of Nigeria (CMAN), Oyedele clarified that this is not a total tax hike but a move to bring more clarity and fairness. He pointed out that under the new law, capital market gains remain exempt, calling it a strategic opportunity to encourage young Nigerians to invest in regulated markets instead of speculative assets.
Oyedele also highlighted refund provisions in the law: the government will reserve a portion of revenue to honour legitimate tax refund claims, signalling an effort to improve transparency and taxpayer trust.
To ensure broad public understanding, the committee is partnering with the National Orientation Agency (NOA) to translate key parts of the tax reform into local languages so that citizens across the country can grasp their rights and obligations under the new regime.
How the New Tax Rules Will Treat Virtual Assets
Under the Nigeria Tax Administration Act (NTAA) 2025, Virtual Asset Service Providers (VASPs) are subject to Taxable activities, including selling, trading, staking, or receiving virtual assets, as well as airdrops or rewards tied to those assets.
Income paid in virtual currency for goods or services will be treated like fiat currency income and taxed accordingly, based on the market value at the time of the transaction.
Regulatory clarity: The reform brings digital assets fully into the tax net, formalising how they are taxed and ensuring compliance among crypto users.
Fairness and modernisation: By allowing deduction of losses, the law tries to balance taxation with the risky nature of virtual asset markets.
Revenue potential: With Nigeria’s growing activity in the crypto space, this taxonomy could become a new source of tax revenue.
Youth and investor behaviour: Exempting capital market gains may shift some youth interest back into securities, helping deepen the country’s traditional financial markets.
By bringing virtual currencies into the tax net, Nigeria’s fiscal reform law marks a major step toward modernising its revenue system. The clearer rules are expected to improve compliance, protect investors, and guide how Nigerians engage with digital assets going forward.
Ogochukwu Onwaeze
