Oyedele Says New Tax Laws Offer Clarity, Not Extra Burden on Crypto Traders

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has assured Nigerians that the newly enacted tax laws are not intended to impose additional financial strain on cryptocurrency traders but to provide long-needed clarity on the taxation of digital assets. Speaking at a policy dialogue in Lagos, Oyedele explained that the reforms — which include the Nigeria Tax Act, the Nigeria Tax Administration Act, and amendments to the Nigeria Revenue Service (Establishment) Act — were crafted to modernise Nigeria’s tax system, broaden the tax net, and align the country with global standards. He emphasised that the goal was not to punish or overtax crypto users but to eliminate uncertainty around how digital transactions should be treated under existing tax rules. “The reforms do not introduce new or higher taxes on crypto traders,” Oyedele said. “They simply provide clarity, treating gains from digital assets the same way as other investments such as shares or property.” Under the new framework, profits from cryptocurrency transactions will be categorised as taxable income or capital gains, depending on the nature of the activity. Losses can also be reported in line with established tax principles. The Federal Inland Revenue Service (FIRS) and the Ministry of Finance are expected to release detailed implementation guidelines to ensure smooth compliance. Oyedele noted that measures will be introduced gradually and in consultation with stakeholders, to allow both individuals and businesses time to adapt. Reactions from the crypto market have been mixed. While some investors welcome the clarity as a step toward boosting investor confidence, others fear compliance hurdles due to the complexity of tracking digital transactions across different platforms. Tax analysts have stressed that simplified record-keeping tools and public education will be crucial for effective implementation. Oyedele reiterated that the reforms will take effect in phases, guided by ministerial directives and explanatory notes. “Our objective is a fair and transparent tax system that supports innovation and encourages investment in Nigeria,” he said. Nigeria, with one of the highest crypto adoption rates in Africa, is expected to set a regional precedent with the rollout of these reforms, which could influence how other African countries approach the regulation of digital assets.