The Federal Government, through the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has announced the introduction of new tax laws by September. These regulations will specifically address the growing cryptocurrency industry in Nigeria.
At the FIRS 2024 Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos, Dr. Adedeji emphasized the current lack of legal frameworks governing cryptocurrency transactions in Nigeria. He stressed the urgent need for regulation, considering the industry’s significant presence in the country.
Nigeria’s cryptocurrency market, valued at approximately $400 million, is one of the largest in Africa. About 33% of the population holds some form of digital currency. A report from Chainalysis highlighted that the nation’s cryptocurrency transaction volume grew by 9% year over year, reaching $56.7 billion between July 2022 and June 2023.
Dr. Adedeji outlined that the new tax laws aim to reform the nation’s revenue system by streamlining existing tax regulations and enhancing service delivery, all of which support President Bola Tinubu’s economic agenda. He cited outdated laws like the 1939 stamp duty tax, which was established before the advent of modern technology, as a key area for reform.
He also pointed out the unavoidable rise of cryptocurrency and the necessity for legal frameworks to govern it, as seen in other countries. Regulating this innovation ensures it does not hinder Nigeria’s economic development.
Dr. Adedeji expressed gratitude to the National Assembly for its consistent support, which has enabled the FIRS to meet its revenue targets and contribute to wealth distribution. He also mentioned that the FIRS is on track to achieve the N19.4 trillion target set by the National Assembly for this year.
Senator Muhammed Musa, Chairman of the Senate Committee on Finance, echoed the need to regulate the cryptocurrency industry. He highlighted the importance of updating tax laws to reflect modern realities, especially as cryptocurrencies have become a major source of income. He assured that the necessary legislative processes would begin once the Senate resumes from recess, allowing for amendments and the creation of new laws that align with current technological advancements.
