Nigeria’s Tax Reforms: We will tax cryptocurrency, give incentives to start-ups, Oloyede

The Chairman, Nigeria’s Tax Reforms Committee, Mr Taiwo Oyedele stated that gains made from investments in cryptocurrencies will be tax-deductible. He, however, stated that losses on crypto investments will be borne by the investor.

Oloyede disclosed at the recent interactive session with journalists and influencers to clarify the tax reform laws. He explained that investment in cryptocurrencies could be likened to investments in shares and stocks, which were subject to taxes.

“Cryptocurrency investment will be taxed when profit is made, but we will leave you when you make losses,” he said.

Meanwhile, the tax reforms Chairman had earlier stated that shares would only be taxed when the value to be sold is up to or more than N1.5million. Oloyede noted that if the shares are sold to diversify the owners’ share portfolio within the Nigerian marketplace, it would not be tax-deductible.

Nigeria’s Tax Reforms and Crypto

Responding to a journalist, Oloyede assured citizens that Nigeria’s tax reforms have robust incentives for start-ups. He said the tax law has a whole chapter on incentives for start-ups. The government is interested in making start-ups grow so that they are viable enough to employ people.

He stressed that the incentives would go a long way to reduce unemployment, increase income, and create sustainable households. “We will grow the economy so that we can tax income, not potential,” he said. While urging Nigerians to engage the new laws constructively, he stressed that it intends to “tax the growth and not the seed.”

Speaking to journalists at the session, he stated that “the poor are not being taxed under the new laws. The the average citizen will pay less, not more taxes.” Businesses will save costs through harmonization, enhanced input credits, faster tax refunds, lower withholding tax rates, and a planned reduction in corporate tax rate.

“Small companies are exempted from corporate tax, charging of VAT on their transactions, and withholding tax. The informal sector will benefit from incentives to join the formal economy rather than being penalized. This, he said, will thereby enhance its opportunity for growth.

“These reforms are not about raising taxes arbitrarily, but about making the system simpler, fairer, pro-people, and pro-growth. The measures designed to curb tax evasion are necessary to provide a level playing field for honest and patriotic Nigerians.”

A Prosperous Digital Future

As the country eyes a prosperous digital future, the Chairman also fielded questions about taxation for content creators and freelancers. Oloyede stated firmly that there will be nowhere to hide under the new tax regime.