FG to overhaul tax laws, aims for cryptocurrency regulation
By Esther Agbo
As Nigeria’s economy continues to evolve, the Federal Government is preparing to introduce a comprehensive overhaul of the nation’s tax laws by September. At the heart of this reform is the inclusion of long-overdue regulations for the burgeoning cryptocurrency industry, a move that reflects the government’s recognition of the sector’s rapid growth and its potential implications for Nigeria’s economy.
The announcement was made by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, during the 2024 FIRS Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos.
Dr. Adedeji underscored the critical need for legal frameworks to govern the cryptocurrency market, which is currently estimated to be worth up to $400 million, making Nigeria one of the largest cryptocurrency markets in Africa. With approximately 33 percent of Nigerians holding some form of cryptocurrency, the absence of regulation presents both opportunities and challenges that the new laws aim to address.
Dr. Adedeji stated, “For example, the stamp duty tax law of 1939 when there was no internet or connectivity, nor Local Government. Part of the reason President Bola Tinubu set up the Tax and Fiscal Reform Committee is to check these lapses and take care of the concerns by September.
“While we cannot avoid cryptocurrency as there is no law in Nigeria presently regulating it, there is a need for a law that regulates this line of transaction. This is what is applicable in other countries of the world. When there are innovations in the system, you must plan to regulate it in such a way that it is not injurious to the economic development of Nigeria.”
Dr. Adedeji expressed gratitude to the National Assembly for its unwavering support to the Federal Inland Revenue Service (FIRS) over the years, which has enabled the agency to meet its targets and facilitate wealth distribution.
Dr. Adedeji further highlighted that the FIRS is on track to achieve the N19.4 trillion target set by the National Assembly at the beginning of the year.
The Senate Committee on Finance, chaired by Sen. Muhammed Musa, echoed the urgency of regulating the cryptocurrency industry. Sen. Musa emphasised that the lack of appropriate legislation has left a significant gap in the country’s ability to generate revenue from this rapidly growing sector.
The Senate Committee on Finance, chaired by Sen. Muhammed Musa, echoed the urgency of regulating the cryptocurrency industry to ensure appropriate legislation for tax collection and revenue generation. He highlighted that this process would facilitate updates to tax laws that have been in place since before Nigeria’s independence.
The Senator expressed optimism that the Executive would present the required bill when the Senate reconvenes, allowing for necessary amendments, repeals, and the introduction of updated laws in line with current trends. He pointed out that, given technological advances, cryptocurrencies have become a key source of income, yet Nigeria lacks the legal framework to manage this sector effectively.
