Nigeria Targets Crypto in New Tax Overhaul. The Nigerian government is moving to bring the booming cryptocurrency industry under its tax net as the Federal Inland Revenue Service (FIRS) is set to propose a new tax law aimed specifically at the crypto sector, a move that could significantly increase the country’s revenue from digital currencies.
Despite Nigeria being a major player in the global crypto market, the government currently collects little to no tax from these activities.
To address the above, FIRS is seeking the backing of the Nigerian National Assembly to push through these critical changes.
Nigeria Targets Crypto in New Tax Overhaul: Missed Revenue from Crypto Concerns
FIRS Chairman Zacch Adedeji recently revealed plans to introduce a tax administration bill targeting the cryptocurrency industry.
Speaking before a Nigerian National Assembly joint committee, Adedeji outlined a broader strategy to modernize the country’s tax system to reflect the realities of the digital economy.
Adedeji emphasized the need for Nigeria to align its tax laws with the increasing use of cryptocurrency for trading, cross-border payments, and other financial activities.
Although Nigeria is a significant crypto market in Africa and worldwide, the country has yet to capitalize on the revenue potential from these transactions.
For instance, Central Bank of Nigeria Governor Olayemi Cardoso highlighted that leading crypto exchange Binance reportedly generated $26 billion in revenue from Nigerian transactions alone.
Some officials believe that the exchange failed to collect and remit taxes on these transactions, depriving the country of substantial revenue.
During his presentation to the joint committee, Adedeji acknowledged these concerns and stressed the need to overhaul the tax system to enhance efficiency and capture revenue from the growing crypto market.
Nigeria’s Strategic Approach to Regulating and Taxing the Digital Economy, Cryptocurrencies, and Digital Services
Aligning with Global Trends:
“We cannot ignore the cryptocurrency ecosystem—it’s the future of finance. However, Nigeria currently lacks the legal framework to regulate these operations,” Adedeji told the committee.
Despite the challenges, Adedeji expressed confidence that the FIRS would meet its ambitious $12.2 billion (19.4 trillion naira) revenue target, even as it considers these significant tax law changes.
In response, Senate Finance Committee Chairman Sani Musa praised Adedeji’s proactive approach and called for a unified tax collection system.
Meanwhile, House Finance Committee Chairman Kalejaiye Paul assured full support for FIRS’s efforts to bring the crypto industry into the tax fold.
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