According to Punch Nigeria, Nigeria’s Federal Inland Revenue Service (FIRS) aims to present a bill to tax the crypto industry for parliamentary approval by September. FIRS Chairman Zacch Adedeji recently shared this proposal with a joint committee of the Nigerian National Assembly while detailing plans to overhaul the country’s tax system.
Executive Chairman of FIRS Zacch Adedeji confirmed that they are drafting a new law to regulate the digital assets sector. The law’s approval will depend on the support of the National Assembly.
Therefore, in a meeting with the Senate and House of Representatives Finance Committee, Adedeji pointed to the revision of the 1939 Stamp Duty Act, which governs the taxation of written documents related to transactions or legal acts, as an example of necessary legislative updates.
Nigeria’s 7.5% VAT on crypto
Nigeria is a leading crypto market in Africa. Nigerian SEC Director General Emomotimi Agama values the country’s digital assets market at over $400 million.
Moreover, Nigeria recently imposed a 7.5% VAT on all cryptocurrency transactions. At the end of 2023, the Central Bank of Nigeria (CBN) lifted the ban on banks offering accounts to crypto service providers, marking a first step toward regulating the digital assets market.
However, the push for crypto regulation in Nigeria has intensified. Consequently, Finance Minister Wale Edun has urged the Securities and Exchange Commission (SEC) to focus on providing clear regulations for the industry. This comes after a recent crackdown on crypto platforms, leading global players like OKX to exit the Nigerian market.
Additionally, Binance faces legal action in Nigeria for alleged money laundering and tax evasion. Binance executive Tigran Gambaryan remains detained at the Kuje Correctional Centre in Abuja despite rising international calls for his release due to health concerns. Nevertheless, Nigerian authorities claim that these actions are part of a larger initiative to enforce compliance within the growing industry.
