The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has announced that virtual currencies would now be subject to tax under the latest Nigeria’s new tax reform framework.
The tax expert disclosed this during an online public lecture organised by the Capital Market Academics of Nigeria (CMAN), describing the revised tax legislation as fiscal torch light intended to guide digital financial activities in the country.
Oyedele clarified that virtual currency referred to digital or electronic value that exists solely online without any physical form, adding that such currencies are often created and managed by private developers or specific online communities.
He pointed out that while some were used only within those communities, others, like cryptocurrencies, can be exchanged for real-world money, making them significant enough to fall under the country’s tax net.
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The seasoned tax expert explained that the new tax reform exempted capital market gains from taxation, as part of Federal Government’s fiscal strategies toencourage more young Nigerians to invest in formal financial markets.
He charged all stakeholders in the economy to intensify awareness campaigns to highlight the benefits of long-term investments to the nation’s economic growth.
Oyedele, who cautioned the public to eschew all forms of misinformation about the ongoing tax reforms, which could discourage young people from exploring opportunities in the capital market, noted that many youths wrongly assumed that capital market returns attract a 30 percent tax but debunked the erroneous impression.
He pointed out that real people make bad decisions when misinformed and that inaccurate information could easily discourage potential investors to stake their funds in the economy.
Making further clarification on tax refunds, the tax reforms committee chairman explained the new law mandated the government to set aside funds specifically for refund purposes, adding that this provision is to ensure transparency and accountability under the new fiscal regime.
To ensure wider understanding of the tax reforms, Oyedele disclosed that the committee was already collaborating with the National Orientation Agency (NOA) with a view to translating key aspects of the new tax law into local languages so that people at the grassroots can understand their rights and obligations under the new fiscal legislations.
