Topic: [2024-08-20] Nigeria Aims to Include Cryptocurrencies in Tax System Overhaul (Read 75 times)

Nigeria Aims to Include Cryptocurrencies in Tax System Overhaul

The Nigerian government is looking to impose taxes on the cryptocurrency industry. The Federal Inland Revenue Service (FIRS) plans to introduce a new tax law to achieve this. Despite being a major crypto market, Nigeria currently receives minimal tax income from crypto-related activities. The FIRS is seeking support from the Nigerian National Assembly to implement these changes.

Nigeria Not Benefiting From Crypto Activities

The Federal Inland Revenue Service (FIRS) plans to introduce a tax administration bill targeting the cryptocurrency industry, according to a report. FIRS Chairman Zacch Adedeji recently disclosed the proposal to a Nigerian National Assembly joint committee while outlining plans to revamp the country’s tax system.

Adedeji argued that Nigeria must align its tax laws with current economic realities, including the growing use of cryptocurrency for trading, cross-border payments, and other activities. Despite being a major crypto market in Africa and globally, Nigeria has said it is not benefiting from such crypto-related activities.

To illustrate, the Central Bank of Nigeria Gov. Olayemi Cardoso previously claimed that leading crypto exchange Binance generated $26 billion in revenue from Nigerian transactions. Some officials contend that the cryptocurrency exchange failed to collect taxes on its behalf thus depriving the country of revenue.

However, during his appearance before the joint committee, Adedeji appeared to acknowledge this when he discussed revamping the tax system to make it more efficient.

“We cannot run away from the cryptocurrency ecosystem because it is the in-thing. But as it stands in Nigeria today, there is no law that regulates cryptocurrency operations,” Adedeji stated.

The chairman told committee members that even as the FIRS considers tax law changes, he’s confident the agency will reach its $12.2 billion (19.4 trillion naira) revenue goal.

Meanwhile, the report quotes Senate Finance Committee Chairman Sani Musa as commending Adedeji for meeting with lawmakers and calling for a single tax collection agency. House Finance Committee Chairman Kalejaiye Paul pledged support for the FIRS.

Source: https://news.bitcoin.com/nigeria-aims-to-include-cryptocurrencies-in-tax-system-overhaul/