Nigeria’s tax authority, the Federal Inland Revenue Service (FIRS), plans to seek National Assembly support for a comprehensive new crypto regulation law. Local reports show that FIRS Executive Chairman Zacch Adedeji announced this during a recent stakeholder engagement with the National Assembly’s Finance Committees.
The proposed legislation, which FIRS plans to introduce in Sept, is part of a broader initiative to overhaul Nigeria’s tax system. According to Adedeji, the new bill will focus on regulating the growing crypto industry and aims to harness its economic benefits for Nigeria while mitigating likely risks.
Moreover, this regulatory effort responds to the rapidly expanding digital economy and the need for modern legal frameworks to keep pace with technological advancements.
Upgrading Nigeria’s tax system
Adedeji emphasized the crypto regulation need, highlighting the importance of clear and comprehensive rules to safeguard the economy. He urged collaboration between the FIRS and lawmakers to draft and implement the proposed bill.
On July 9, Wale Edun, Nigerian Minister of Finance and Coordinating Minister of the Economy, stated that the newly appointed Securities and Exchange Commission (SEC) board will tackle the sophistication of crypto regulation.
Role of SEC in crypto regulation
The SEC has started revising its rules for digital asset issuance, trading platforms, exchanges, and custody. Consequently, these updates aim to improve the regulatory framework and help it better address the fast-changing digital asset markets.
The recent SEC board appointments, approved by Nigerian President Bola Tinubu on Apr. 19, 2024, signal a new era in financial regulation. Specifically, the new board members, including Director-General Katuka, Executive Commissioner of Operations Bola Ajomale, and Executive Commissioner of Legal and Enforcement Emomotimi Agama, are expected to drive this regulatory transformation.
Meanwhile, the crypto community has urged Nigeria’s government and regulators to implement responsible regulations for virtual assets instead of relying on clampdowns to revive the market.
