Nigeria Proposes New Law to Regulate Cryptocurrency, Modernize Tax System

• Nigeria’s tax authority plans to introduce a bill regulating cryptocurrency and modernizing outdated tax laws for the digital age.
• The proposed legislation seeks to simplify tax laws and harmonize revenue collection, reflecting Nigeria’s growing focus on digital assets.
• FIRS Chairman Adedeji emphasizes the necessity of regulating cryptocurrency to protect Nigeria’s economy and align with modern economic realities.

Nigeria’s Federal Inland Revenue Service (FIRS) is taking significant steps to regulate cryptocurrency and modernize the nation’s tax laws. The agency is set to propose a new bill in September, seeking support from the National Assembly to address the rapidly evolving digital economy. FIRS Executive Chairman Zacch Adedeji made the announcement during a stakeholder meeting with the National Assembly’s Finance Committees, signaling a major shift in how Nigeria approaches digital assets.

FIRS Pushes for Updated Tax Legislation

The proposed bill aims to overhaul Nigeria’s outdated tax system, ensuring that it meets the demands of today’s digital economy. Adedeji highlighted the importance of a clear regulatory framework for cryptocurrency, emphasizing the need to harness its benefits while mitigating risks. The bill will focus on modernizing existing tax laws, which Adedeji noted are no longer adequate for the current economic environment.

Adedeji has called for cooperation between the FIRS and legislators in developing and enforcing the proposed legislation. He said that the regulation of cryptocurrency is necessary to safeguard Nigeria’s economy. Furthermore, the bill would seek to simplify revenue collection procedures with a view to making the tax system work better for digital age realities.

What SEC Wants in Cryptocurrency Law

The Nigerian Securities and Exchange Commission (SEC) has already begun reviewing its rulebook on digital assets, focusing mainly on areas such as issuance, exchanges, and custody. This move is expected to strengthen controls around digital assets while complimenting wider efforts by FIRS aimed at transforming Nigeria’s tax system into one fit for a more technology-driven financial landscape. According to reports, personnel changes recently made at board level within SEC are likely going to be instrumental towards achieving these regulatory reforms.

Government Interest Shifts To Digital Assets

Nigeria’s growing appreciation of cryptocurrencies can be seen from their support towards initiatives being spearheaded by FIRS. This draft law represents only part of a wider plan by government agencies across various sectors designed towards embracing this new wave of money management within our country’s borders otherwise referred as digital asset class management.