The Nigerian government has recently highlighted the intention to introduce a new cryptocurrency tax law in the region, which will be effective by September.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, released this development at the FIRS 2024 Stakeholders Engagement with the House of Representatives Committees on Finance in Lagos.
He said the FIRS organisation has plans to introduce new tax laws, which will also cover the cryptocurrency industry. He also highlighted the absence of an acknowledged legal framework governing the cryptocurrency industry in Nigeria.
Cryptocurrency Adoption in Nigeria
The rate of adoption of cryptocurrency in the region is high. The crypto industry in Nigeria is estimated to be worth up to $400M and is the largest in Africa; around 33% of the country’s population holds one form of cryptocurrency.
According to a report by Chainalysis, Nigeria’s cryptocurrency transaction volume experienced a 9% year-over-year growth, reaching $56.7 billion between July 2022 and June 2023.
Read Also: Nigerian government to tax crypto traders a 7.5% VAT in transaction fees on KuCoin
Approving the Crypto Tax Law in Nigeria
Also, Senator Muhammed Musa, Chairman of the Senate Committee on Finance, highlighted the importance of regulating the cryptocurrency industry in the region; which is crucial for providing the country with appropriate legislation for tax collection and revenue generation.
The lawmaker is confident that the Executive would submit the necessary bill after the Senate resumes recess, enabling amendments, repeals, and the reenactment of the new tax laws.
What You Should Know; The Nigerian government is planning to create new tax laws for the cryptocurrency industry, and this law is set to be available and in effect by September 2024.
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