The Nigerian government is set to introduce a new set of tax laws, including specific regulations for the country’s growing cryptocurrency industry, by September 2024. This initiative is part of a broader plan to streamline revenue collection and modernize Nigeria’s tax framework. The forthcoming bill aims to simplify existing tax laws while addressing the complexities of the digital economy, particularly in the rapidly expanding cryptocurrency sector.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, announced the Federal Government’s plan during the 2024 FIRS Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos. Dr. Adedeji emphasized the urgent need for legal frameworks to govern cryptocurrency transactions in Nigeria, noting the absence of clear regulations in this area. He stressed that the new laws would provide clearer guidelines for businesses and individuals involved in crypto-related activities, marking a significant step in regulating and benefiting from the digital economy.
Nigeria’s cryptocurrency industry, estimated to be worth up to $400 million, is one of the largest in Africa, with around 33% of the population holding some form of cryptocurrency. The introduction of these tax laws is expected to create a more structured environment for the industry, enhancing both regulatory oversight and revenue generation.
This move aligns with Nigeria’s broader efforts to adapt its financial regulations to the evolving digital landscape, ensuring that the country remains at the forefront of technological and economic innovation in Africa.