Chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, Taiwo Oyedele, has clarified that earnings earned from digital belongings, together with cryptocurrency, will not be newly taxable below Nigeria’s revised tax legal guidelines.
Somewhat, he stated such earnings has at all times been topic to taxation below the present Private Revenue Tax Act, which the brand new legal guidelines search to make clear.
Talking over the weekend throughout an interactive session with journalists, influencers, and public analysts, Oyedele addressed widespread misconceptions concerning the scope and intent of the brand new tax reforms, that are set to take impact on January 1, 2026.
“There isn’t any imposition of tax on people who weren’t beforehand taxable,” Oyedele acknowledged.
“On-line content material creators, influencers, earnings from digital belongings, and different income-generating actions have at all times been topic to tax. What the brand new legal guidelines do is present readability and guarantee equity, akin to permitting deductions for losses the place relevant.”
He emphasised that earnings obtained as a present, reasonably than as cost for a transaction, stays non-taxable.
Tax Harmonisation and Burden Discount
Oyedele additionally highlighted the administration’s ongoing efforts to simplify Nigeria’s tax system.
“We’re lowering over 60 totally different taxes and levies to fewer than 10,” he stated, noting that the objective is to ease compliance and eradicate the proliferation of a number of fees.
Opposite to fears of elevated taxation, a number of levies launched by earlier administrations have already been reversed or suspended. These embody the 5% levy on airtime and information, the cybersecurity levy on bank transfers, the carbon tax on single-use plastics, and excise duties on autos.
“Our strategy is people-centric, growth-focused, and efficiency-driven,” Oyedele added. “These reforms are designed to profit all Nigerians. Allow us to work collectively to make sure efficient implementation and place ourselves for the higher days forward of us.”
New tax reforms impose as much as 25% on high-income Nigerians
Oyedele disclosed that high-income earners, representing the highest 3% of the inhabitants, can pay as much as 25% of their earnings in taxes. In the meantime, Nigerians incomes the nationwide minimal wage shall be exempt from private earnings tax below the newly enacted tax reform legal guidelines.
Nigeria’s nationwide minimal wage is at the moment N70,000 monthly, as authorized by President Bola Tinubu in 2024.
He emphasised that the reforms are designed to cut back the tax burden on odd Nigerians whereas guaranteeing that wealthier people contribute extra to nationwide growth.
“The goals of the reforms have been clear from the very starting: scale back the tax burden on the lots, harmonise and simplify tax guidelines to deal with the multiplicity of taxes, and promote a contemporary, business-friendly and globally aggressive tax system,” Oyedele stated. “Our strategy is people-centric, growth-focused, and efficiency-driven.”
Clarifying Crypto Taxation: A Sensible Breakdown
Economist Kalu Aja supplied sensible examples to assist Nigerians perceive how crypto-related earnings is taxed below the present framework:
- If an unemployed particular person receives $100 (aproximately N100,000) from a relative overseas, they don’t pay earnings tax, because the quantity is under the N800,000 threshold. Nonetheless, they might incur VAT and digital switch fees.
- If that N100,000 is used to purchase Bitcoin and later bought for N200,000, the N100,000 revenue will not be taxable as earnings, once more because of the threshold.
- If the identical funding yields N2,000,000, leading to N1,900,000 revenue, earnings tax does apply, because the revenue exceeds N800,000.
- If the transaction is performed below a registered firm, the person doesn’t pay private earnings tax. Nonetheless, the corporate could also be chargeable for different taxes except its annual turnover is under N50 million, during which case it’s exempt from company earnings tax.
The Committee reiterated that the reforms goal to advertise equity, simplicity, and financial progress, whereas encouraging formalization and defending small companies.
What You Ought to Know
- Final month, Oyedele disclosed that the tax reform legal guidelines have been formally revealed within the authorities gazette, marking a serious step in overhauling the nation’s fiscal framework.
- The reforms, signed into regulation on June 26, 2025, set up a brand new basis for taxation, administration, and income assortment in Africa’s largest financial system.
- The 4 new legislations are the Nigeria Tax Act (NTA), 2025; the Nigeria Tax Administration Act (NTAA), 2025; the Nigeria Income Service (Institution) Act (NRSEA), 2025; and the Joint Income Board (Institution) Act (JRBEA), 2025
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