Thomas Daniels
Nigeria’s Federal Inland Revenue Service (FIRS) is moving to modernize the country’s tax system by introducing a comprehensive law aimed at regulating cryptocurrencies. The initiative, driven by FIRS Executive Chairman Zacch Adedeji, was unveiled during a recent engagement with the National Assembly’s Finance Committees. Scheduled for introduction in September, the proposed legislation reflects a broader effort to adapt Nigeria’s tax framework to the rapidly expanding digital economy.
Adedeji highlighted the significance of regulating cryptocurrencies to ensure that Nigeria harnesses their economic potential while mitigating associated risks. This initiative underscores the need for updated legal frameworks that align with technological advancements and the growth of digital assets.
Modernizing Nigeria’s Tax System
Adedeji called for collaboration between FIRS and lawmakers to draft and implement the proposed bill, emphasizing the necessity of clear and comprehensive regulations to safeguard the economy. The legislation aims not only to address cryptocurrency regulation but also to simplify and modernize existing tax laws, many of which are outdated in the context of today’s digital economy.
This push for modernization is part of Nigeria’s broader recognition of the importance of digital assets. On July 9, Nigerian Minister of Finance and Coordinating Minister of the Economy, Wale Edun, urged the newly inaugurated Securities and Exchange Commission (SEC) board to address the complexities surrounding cryptocurrency regulation.
SEC’s Role in Crypto Regulation
The SEC has already initiated amendments to its rules concerning digital asset issuance, offering platforms, exchanges, and custody services. These changes aim to strengthen the regulatory framework, ensuring it remains responsive to the evolving digital asset market.
The recent appointments to the SEC board, approved by President Bola Tinubu on April 19, 2024, signal a new era in financial regulation. The new board members, including Director-General Katuka, Executive Commissioner of Legal and Enforcement Emomotimi Agama, and Executive Commissioner of Operations Bola Ajomale, are expected to lead this regulatory transformation.
Amid these developments, the crypto community has urged the Nigerian government to adopt a balanced approach to regulation, advocating for responsible oversight rather than heavy-handed clampdowns to ensure the market’s vitality.
