Key Points
- Nigeria’s Federal Inland Revenue Service (FIRS) plans to introduce a comprehensive bill in September to regulate cryptocurrency and modernize the country’s tax system.
- The proposed legislation aims to simplify tax laws, harmonize revenue collection, and replace outdated regulations with contemporary frameworks, reflecting Nigeria’s growing embrace of digital assets.
FIRS Proposes Comprehensive Cryptocurrency Bill
Nigeria’s tax authority, the Federal Inland Revenue Service (FIRS), is taking significant steps to regulate cryptocurrency and update the country’s tax laws. FIRS Executive Chairman, Dr. Zacch Adedeji, announced plans to seek the National Assembly’s support for a comprehensive new law during a recent stakeholder engagement session with the National Assembly’s Finance Committees.
The proposed legislation, which FIRS aims to introduce in September, is part of a broader effort to overhaul Nigeria’s tax system. Adedeji emphasized the importance of regulating cryptocurrencies, citing the need for a clear and comprehensive set of rules to protect the economy while harnessing the benefits of the rapidly expanding digital economy.
“We cannot run away from the cryptocurrency ecosystem because it is the in-thing. But as it stands in Nigeria today, no law regulates cryptocurrency operations,” Adedeji stated, according to a report by The Nation.
Modernizing Nigeria’s Tax System
The new bill will focus on cryptocurrencies and aim to simplify and modernize existing tax laws. Adedeji highlighted the Stamp Duty Act as an example of an outdated law that requires urgent attention. The proposed tax system overhaul comes as the Nigerian government increasingly recognizes the importance of digital assets and the need for updated legal frameworks to keep pace with technological advancements.
The FIRS chairman called for collaboration between the agency and lawmakers to draft and implement the proposed bill. He expressed confidence in the agency’s ability to achieve the N19.4 trillion revenue target set for 2024, stating that current figures indicate the agency is on track.
Legislative Support and Future Outlook
The initiative has garnered support from key legislative bodies. Senate Committee on Finance Chairman, Senator Sani Musa, commended FIRS for organizing the stakeholders’ meeting and emphasized the need for a single tax collection agency to improve efficiency. He expressed the committee’s willingness to support FIRS in achieving its revenue target.
Similarly, the House of Representatives Committee on Finance, represented by Hon. Kalejaiye Paul, praised FIRS for its leadership and pledged the House’s support in collaborating with the agency to drive national development.
As Nigeria moves forward with these plans, the proposed legislation is expected to play a crucial role in shaping the country’s digital economy landscape and modernizing its tax administration system to meet the challenges of the 21st century.
