Nigerian tax authority to introduce crypto regulation bill in September: report

The Federal Internal Revenue Service, Nigeria’s tax authority, plans to introduce a bill to regulate the cryptocurrency industry by the end of 2024.

Speaking at a recent stakeholder engagement meeting with the National Assembly Committees on Finance, FIRS Chairman Zacch Adedeji said the country is ready to introduce a bill that will regulate the crypto sector, reduce its risks and bring in laws that will benefit the country’s economy, Vanguard reported.

“We cannot escape cryptocurrency today. But as we are here today, there are no laws regulating cryptocurrency in Nigeria. But what is happening is new and we cannot escape them.”

Federal Internal Revenue Service Commissioner Zacch Adedeji

The new regulation is part of a broader effort to modernise existing laws in the tax system to align with Nigeria’s evolving economic landscape. Adedeji called on FIRS to collaborate with lawmakers to implement the bill, with the first iteration expected to be presented in September.

Speaking at the session, the Chairman of the Senate Committee on Finance, Senator Mohammed Musa, acknowledged that cryptocurrency has become “the biggest way to make money,” adding that the bill will introduce regulations that will help Nigeria generate revenue for infrastructure and human capital development.

Nigeria focuses on crypto as adoption grows

The latest announcement comes after Nigerian Finance Minister Wale Edun asked the board of Nigeria’s newly established Securities and Exchange Commission to focus on regulating the cryptocurrency sector.

The seven-member SEC board, approved by Chairman Bola Tinubu in April, launched a compliance program to help crypto businesses comply with local regulations. The commission also announced plans to revamp its digital asset issuance process to include Virtual Asset Service Providers.

The West African country has also turned its attention to blockchain implementation. Nigeria’s IT sector regulator, the National Information Technology Development Agency, recently restructured the National Blockchain Policy Steering Committee, a government-appointed body that oversees the implementation and regulation of blockchain technology in the country.

NITDA recently announced plans to establish research centres across Nigeria focusing on key technologies such as blockchain and artificial intelligence.

Cryptocurrencies have become a lifeline for developing countries like Nigeria, where economic hardship has forced residents to seek alternative ways to hold their wealth. However, this growing reliance has also highlighted the need for regulation of the crypto sector, which is often plagued by illicit activities. As Crypto.news previously reported, another major player in the region, Ghana, has also introduced draft guidelines to address these challenges.