Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), announced that the agency would be seeking support from the National Assembly to introduce legislation for the crypto industry.
Adedeji made this statement during a stakeholder engagement session with the Senate and House Committee on Finance, organized by the Intergovernmental Relations Department of FIRS under the theme ‘Repositioning The FIRS To Achieve Its Mandate.’
He stated, “Our plan is first to establish a regulatory framework, which is why we are working closely with the legislature. This framework will form the basis for taxation, as is the practice in other parts of the world when dealing with new innovations. We need to prepare for it because it’s inevitable, and we must regulate it in a way that supports Nigeria’s economic development.”
In his opening remarks, Adedeji informed the lawmakers about the proposed legislation.
He said, “By September, we plan to introduce a bill that will overhaul Nigeria’s revenue administration process, harmonizing and updating our tax laws. For instance, the Stamp Duty Act of 1939, which predates the internet, needs modernization.
“Today, we cannot avoid cryptocurrency, but currently, there is no law regulating it in Nigeria. We must address this.”
Cryptocurrency platforms have faced increased scrutiny following Binance’s exit, after accusations from the Nigerian government of manipulating the naira-to-dollar exchange rate.
Recently, Nigeria imposed a 7.5% Value-Added Tax (VAT) on crypto transaction fees, as announced by cryptocurrency exchange KuCoin, which informed its users that VAT collection would begin on July 8, 2024.
In late 2023, the Central Bank of Nigeria lifted its ban on banks operating accounts for crypto service providers, signaling a shift towards a more open but regulated approach, which was welcomed by many local crypto users.
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