Nigeria’s Federal Inland Revenue Service plans to introduce a bill to regulate the cryptocurrency sector by the end of 2024.
Speaking at a recent stakeholder engagement session with the National Assembly Finance Committees, FIRS Executive Chairman Zacch Adedeji said the country was set to propose a bill that would introduce laws to regulate the crypto sector, mitigate risks involved and benefit the country’s economy, according to a report by Vanguard.
“Today, we cannot escape cryptocurrency. But as it stands, there is no law in Nigeria that regulates cryptocurrency. But this is a new thing that is happening and we cannot escape it.”
Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service
The new regulation is part of a broader effort to modernize existing laws in the tax system to adapt to Nigeria’s changing economic landscape. Adedeji urged the FIRS to work with lawmakers to implement the bill, the first draft of which is expected to be tabled in September.
Also speaking at the session, Senator Mohammed Musa, Chairman of the Senate Committee on Finance, acknowledged that cryptocurrency had become the “main means of making money,” adding that the bill would introduce regulations to help Nigeria generate revenue for infrastructure and human capital development.
Nigeria focuses on cryptocurrency as adoption increases
This recent announcement follows calls from Nigeria’s Finance Minister, Wale Edun, who asked the new board of the Nigerian Securities and Exchange Commission to focus on regulating the cryptocurrency sector.
Approved by Chairman Bola Tinubu in April, the SEC’s seven-member board established a compliance program to help cryptocurrency businesses comply with local regulations. Additionally, the commission announced plans to revamp its digital asset issuance process to include virtual asset service providers.
The West African country has also turned its attention to blockchain implementation. The National Information Technology Development Agency, Nigeria’s IT sector regulator, recently restructured the National Blockchain Policy Steering Committee, a government-appointed body that oversees the implementation and regulation of blockchain technology in the country.
More recently, NITDA unveiled plans to roll out research centres across Nigeria, focusing on key technologies like blockchain and artificial intelligence as part of its efforts.
Cryptocurrencies have become a lifeline for developing countries like Nigeria, where economic hardship has pushed residents to seek alternative ways to hold onto their wealth. However, this growing reliance has also highlighted the need to regulate the cryptocurrency sector, which is often rife with illicit activities. As crypto.news reported earlier, Ghana, another key player in the region, has also come up with draft guidelines to address these challenges.
