Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), announced that the Federal Government will introduce new tax laws in September, which will include regulations specifically targeting the cryptocurrency industry.
Speaking at the FIRS 2024 Stakeholders Engagement in Lagos, Dr. Adedeji emphasized the urgent need for regulatory frameworks for cryptocurrency in Nigeria, which currently lacks legal oversight despite the industry’s estimated worth of $400 million and significant growth.
Cryptocurrency’s Role in Nigeria’s Economy
Nigeria’s cryptocurrency sector is one of the largest in Africa, with around 33% of the population holding some form of digital currency. A report from Chainalysis highlighted a 9% year-over-year increase in Nigeria’s cryptocurrency transaction volume, totaling $56.7 billion between July 2022 and June 2023.
Overhauling Nigeria’s Tax System to Boost Economic Growth
Dr. Adedeji explained that the upcoming tax laws would aim to modernize the nation’s revenue system, harmonize existing tax laws, and improve services to align with President Bola Tinubu’s economic agenda. He cited the outdated 1939 stamp duty law as an example of the urgent need for reform.
Importance of Regulating Cryptocurrency for Economic Stability
While acknowledging the inevitability of cryptocurrency’s presence in Nigeria, Dr. Adedeji stressed the need for regulation to ensure it does not harm the country’s economic development. He noted that other countries have established similar regulations to manage such innovations.
Acknowledging Legislative Support and Progress on Revenue Goals
Dr. Adedeji expressed gratitude to the National Assembly for its consistent support, which has enabled FIRS to meet its targets and contribute to wealth distribution. He also mentioned that FIRS is on track to achieve the N19.4 trillion revenue target set for the year.
Senate Committee on Finance Advocates for Crypto Regulation
Sen. Muhammed Musa, Chairman of the Senate Committee on Finance, underlined the importance of regulating the cryptocurrency industry to provide Nigeria with the appropriate legal framework for tax collection and revenue generation. He expressed confidence that the Executive would submit the necessary bills to update tax laws in line with modern technological advancements.
