Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, has announced the Service’s intention to collaborate with the National Assembly in drafting legislation to govern the crypto industry.
Adedeji made this statement during a stakeholder engagement with the Senate and House Committee on Finance, organized by the Intergovernmental Relations Department of the Service. The event was themed ‘Repositioning The FIRS To Achieve Its Mandate.’
He emphasized the importance of establishing regulatory laws for cryptocurrencies, citing the necessity to ensure that such regulations support Nigeria’s economic development without causing harm.
In his opening remarks, Adedeji briefed the lawmakers on the upcoming bill.
He stated, “I would like to inform you that by September, we plan to introduce a comprehensive legislation that will streamline the revenue administration process in Nigeria, by harmonizing, redefining, and simplifying existing tax laws. For instance, we need to update the Stamp Duty Act of 1939 to align with the digital age.”
Adedeji also highlighted the current absence of specific laws in Nigeria governing cryptocurrency, emphasizing the inevitability of regulating this sector.
Following the departure of Binance amid allegations of currency exchange rate manipulation, cryptocurrency platforms have faced increased scrutiny by the Nigerian government.
Notably, Nigeria recently introduced a 7.5% Value-Added Tax on crypto transaction fees, with cryptocurrency exchange KuCoin announcing the implementation of VAT collection beginning on July 8, 2024.
In late 2023, the Central Bank of Nigeria lifted its ban on banks providing services to crypto entities, indicating a shift towards a regulated yet open approach, well-received by local cryptocurrency users.