Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has dispelled misconceptions about Nigeria’s revised tax laws, emphasizing that income from virtual assets, such as cryptocurrency, is not newly taxable.
Speaking at an interactive session with journalists, influencers, and public analysts, Oyedele clarified that such income has always been subject to taxation under the existing Personal Income Tax Act. The new reforms, set to take effect on January 1, 2026, aim to provide clarity and ensure fairness, including provisions for loss deductions.
“There is no new tax on individuals who were not previously taxable,” Oyedele stated. “Income from online content creators, influencers, and virtual assets has always been taxable. The reforms simply streamline the process and promote equity.” He noted that income received as gifts, not as payment for transactions, remains non-taxable.
Oyedele outlined the administration’s efforts to overhaul Nigeria’s complex tax landscape, reducing over 60 taxes and levies to fewer than 10 to simplify compliance. Several levies, including a 5% charge on airtime and data, a cybersecurity levy on bank transfers, a carbon tax on single-use plastics, and excise duties on vehicles, have been reversed or suspended. “Our approach is people-centric, growth-focused, and efficiency-driven,” he said, underscoring the reforms’ goal to create a modern, business-friendly tax system.
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The reforms introduce a progressive tax structure, with high-income earners—representing the top 3% of Nigerians—facing up to a 25% tax rate. Meanwhile, workers earning the national minimum wage of N70,000 per month, approved by President Bola Tinubu in 2024, will be exempt from personal income tax. “These reforms reduce the burden on ordinary Nigerians while ensuring wealthier individuals contribute fairly to national development,” Oyedele explained.
Oyedele called for public support to ensure the reforms’ success, emphasizing their role in fostering a globally competitive economy. “Let us work together to implement these changes effectively and position Nigeria for a brighter future,” he urged.
