New Bill to Regulate Cryptocurrency in Nigeria's Tax System

The Nigerian Federal Inland Revenue Service (FIRS) plans to introduce a new bill aimed at improving tax collection, with a focus on regulating cryptocurrency transactions.

Proposed Legislation to Modernise Tax Collection

The proposed legislation, if approved, could be enacted as early as September. Dr Zacch Adedeji, Chairman of FIRS, has highlighted the necessity for such a law, given the current absence of regulation in Nigeria’s crypto space.

He stressed the importance of planning for regulation when introducing new systems to safeguard economic development, a practice observed in other countries.

FIRS Seeks to Streamline Tax Laws

During a meeting with the National Assembly’s Finance Committee in Lagos, Dr Adedeji outlined the bill’s objectives: simplifying tax laws, enhancing seamless tax collection, and eliminating outdated frameworks.

Notably, the bill aims to phase out laws like the Stamp Duty Act, which has been criticized for its penalties and transaction costs.

Stakeholders Support Regulation

Senator Sani Musa, Chairman of the Senate Committee on Finance, expressed support for FIRS’ initiative, emphasizing the need for a unified revenue collection body.

He acknowledged the importance of regulating the cryptocurrency industry to boost overall revenue.

Similarly, Hon. Kalejaiye Paul, representing the House of Representatives Committee on Finance, commended FIRS for its leadership and commitment to national development.