The Nigerian government is moving towards imposing taxes on the cryptocurrency industry, with the Federal Inland Revenue Service (FIRS) planning to introduce a new tax law to facilitate this. Despite Nigeria being a significant player in the global crypto market, the country currently receives minimal tax revenue from crypto-related activities. FIRS is seeking backing from the Nigerian National Assembly to implement these changes.
Nigeria Missing Out on Crypto Revenue
The Federal Inland Revenue Service (FIRS) aims to introduce a tax administration bill targeting the cryptocurrency industry. FIRS Chairman Zacch Adedeji recently presented this proposal to a joint committee of the Nigerian National Assembly, as part of broader plans to overhaul the country’s tax system.
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Adedeji emphasized the need for Nigeria to update its tax laws to reflect current economic realities, including the increasing use of cryptocurrency for trading, cross-border payments and other financial activities. Despite Nigeria’s significant presence in the African and global crypto markets, the country has not been benefiting financially from these activities.
For instance, Central Bank of Nigeria Governor Olayemi Cardoso previously noted that Binance, a leading crypto exchange, generated $26 billion in revenue from transactions involving Nigerian users. Some officials believe that the exchange failed to collect the necessary taxes, thereby depriving the country of potential revenue.
During his appearance before the joint committee, Adedeji acknowledged the need to revamp the tax system to make it more effective, stating, “We can’t ignore the cryptocurrency ecosystem because it is a significant part of the global economy. However, Nigeria currently lacks laws regulating cryptocurrency operations”.
Adedeji assured the committee members that even as the FIRS considers changes to the tax laws, he is confident that the agency will meet its revenue target of $12.2 billion (19.4 trillion naira).
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Senate Finance Committee Chairman Sani Musa praised Adedeji for engaging with lawmakers and advocated for the establishment of a single tax collection agency. House Finance Committee Chairman Kalejaiye Paul also expressed support for the FIRS’s efforts.
Cre: news.bitcoin
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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