Nigeria’s FIRS Proposes to Launch Crypto Tax Regulatory Framework

• The FIRS of Nigeria seeks support from the National Assembly to launch a new crypto regulatory bill.
• The proposed bill intends to bring enhancements to the existing tax regulations.
• The regulators envision addressing the growing demand for crypto and its potential risks.

Nigeria’s Federal Inland Revenue Service (FIRS) is proposing new crypto regulations, aiming to streamline tax rules and tackle potential risks in the rapidly growing crypto market. The agency is seeking support from the National Assembly for the bill. If approved, the bill is expected to be implemented in September 2024 as part of Nigeria’s broader vision of an advanced and transparent crypto tax system.

FIRS Executive Chairman Zacch Adedeji unveiled the proposal during a meeting with the National Assembly’s Finance Committees. The bill aims to simplify and enhance existing tax laws, aligning with the ever-changing tech landscape. Adedeji stressed the need for collaboration between the FIRS and the National Assembly to create and implement the bill.

Stakeholders have shown support for the proposed bill. Senator Sani Musa, Chairman of the Senate Committee on Finance, recognized the FIRS’s efforts to establish an effective regulatory framework for the crypto market. Adedeji is optimistic about achieving the 2024 revenue target of N19.4 trillion, and Musa pledged the committee’s backing to the agency.

Nigeria has already been taking initiatives to embrace crypto regulations and thereby tackle the dangers involved. Earlier this year, Nigerian President Bola Ahmed Tinubu appointed Emomotimi Agama, the former managing director of the Nigerian Capital Market Institute (NCMI), as the country’s new SEC chair.

As part of the country’s endeavor to promote the establishment of the crypto industry, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has called on the SEC to address the complexities of crypto regulation. Edun spotlighted the emergency of introducing stringent crypto regulatory laws.