Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, revealed that the Federal Government plans to adopt new tax laws in September, including restrictions for the cryptocurrency industry.
 Dr. Adedeji emphasized the lack of existing legal frameworks controlling cryptocurrency in Nigeria while speaking on Saturday at the FIRS 2024 Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos. She called for the urgent need for regulation.
With an estimated $400 million in market capitalization, Nigeria has one of the biggest cryptocurrency markets in Africa, with over 33% of the population owning cryptocurrencies.
Nigeria’s cryptocurrency transaction volume increased by 9% year over year between July 2022 and June 2023, hitting $56.7 billion, according to Chainalysis research.
In order to support President Bola Tinubu’s economic agenda, he also mentioned that the upcoming tax laws seek to improve services, harmonize and simplify current tax rules, and revamp the country’s revenue administration.
He stated, “For example, the stamp duty tax statute of 1939, when there was no internet, communication, or local government. Part of the reason President Bola Tinubu established the Tax and Fiscal Reform Committee is to address these issues by September.”
“While we cannot ignore cryptocurrency because there is now no law in Nigeria that regulates it, there is a need for legislation that governs this type of transaction. This is what is applicable in different countries throughout the world. When there are system innovations, you must prepare to govern it in such a way that it does not harm Nigeria’s economic development.”
Dr. Adedeji conveyed her appreciation to the National Assembly for the Federal Inland Revenue Service (FIRS)’s continuous support over the years, which has allowed the organization to accomplish its goals and promote equitable distribution of wealth.
Dr. Adedeji went on to say that the FIRS is on course to meet the N19.4 trillion goal that was established at the start of the year by the National Assembly.
Need for regulating the crypto industry in Nigeria
The Senate Committee on Finance’s Chairman, Sen. Muhammad Musa, declared that regulating the cryptocurrency market was essential to ensuring that the nation has the right laws in place for income production and tax collection.
He said that the procedure will make it possible to change tax regulations that had existed since before Nigeria gained its independence.
The member expressed confidence that when the Senate returns from recess, the Executive would present the required bill, allowing for revisions, repeals, and the re-enactment of laws that reflect contemporary practices.
He pointed out that although cryptocurrency has grown to be a significant source of revenue in light of technical improvements, Nigeria does not currently have the required legal framework to regulate this sector.
