Nigeria’s Federal Inland Revenue Service (FIRS) is planning to introduce a new law to regulate cryptocurrencies. FIRS Executive Chairman Zacch Adedeji announced the move during a meeting with the National Assembly’s Finance Committees. The proposed legislation, expected to be introduced in September, is part of a broader effort to revamp Nigeria’s tax system.
Adedeji emphasized that the new bill will focus on the rapidly growing cryptocurrency industry in Nigeria. The goal is to ensure that the benefits of cryptocurrencies contribute to Nigeria’s economy while also addressing potential risks. This initiative responds to the fast-expanding digital economy and the need for updated legal frameworks to keep up with technological advancements.
Collaboration for Clear Regulations
During the meeting, Adedeji highlighted the importance of creating clear and comprehensive rules for cryptocurrencies. He called for cooperation between FIRS and lawmakers to draft and implement the new bill, which will not only regulate cryptocurrencies but also update and simplify existing tax laws that are currently outdated.
The Nigerian government has increasingly recognized the importance of digital assets. On July 9, Nigerian Minister of Finance and Coordinating Minister of the Economy Wale Edun urged the Securities and Exchange Commission (SEC) to address the challenges of regulating cryptocurrencies. The SEC has already begun amending its rules on digital assets, aiming to create a more responsive regulatory framework.
New Nigeria SEC Board to Lead Financial Regulation
The recent appointments to the SEC board, approved by President Bola Tinubu in April 2024, are expected to play a key role in this regulatory transformation. The new board members will be crucial in shaping the future of financial regulation in Nigeria.
Meanwhile, Nigeria’s crypto community has urged the government and regulators to adopt responsible regulations for digital assets, rather than imposing restrictive measures. The community hopes that these new laws will strike a balance between innovation and protection, allowing the cryptocurrency industry to thrive.
