The Federal Inland Revenue Service (FIRS) is set to collaborate with the National Assembly to enact a law that will regulate the burgeoning cryptocurrency industry in Nigeria. This move aims to ensure that the industry operates within established guidelines and complies with the country’s fiscal policies.
Zacch Adedeji, Executive Chairman of the FIRS, revealed this initiative during a stakeholder engagement session with the Senate and House Committee on Finance. The event, organized by the FIRS’ intergovernmental relations department, focused on “Repositioning the FIRS to Achieve Its Mandate.”
Adedeji emphasized the necessity of creating a legal framework for cryptocurrency regulation, noting that such measures are standard practice globally when dealing with emerging financial technologies. He stated, “We must plan to regulate [cryptocurrency] in a way that supports Nigeria’s economic development.”
During his address, Adedeji also highlighted the need to update and harmonize Nigeria’s tax laws, referencing the outdated Stamp Duty Act of 1939 as an example of legislation in need of modernization to keep pace with technological advancements.
The push for regulation comes amid increased scrutiny of cryptocurrency platforms in Nigeria, particularly following Binance’s exit from the market after being accused of manipulating the naira-to-dollar exchange rate. In response, the Nigerian government announced a 7.5% Value-Added Tax (VAT) on crypto transaction fees as a first step toward regulation.
This initiative follows the Central Bank of Nigeria’s (CBN) decision in late 2023 to lift its ban on banks offering crypto-related services, signaling a shift towards a more regulatory approach rather than outright prohibition. This policy change has been welcomed by many in
