The Nigerian government has announced plans to introduce a new tax law that will restructure the country’s revenue administration processes, with a particular focus on regulating cryptocurrency and the digital market.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, made this known during the 2024 stakeholders’ engagement with the Senate and House Committees on Finance.
The event was organized by the Intergovernmental Relations Department of the FIRS under the theme “Repositioning The FIRS To Achieve Its Mandate.”
Adedeji highlighted the absence of legal frameworks in Nigeria for the digital market, especially for cryptocurrency, and emphasised the need for regulation to ensure it does not harm the country’s economic development.
He noted that the new law, set to be introduced in September, would harmonize and modernize the outdated tax laws currently in use, including the Stamp Duty Act of 1939, which predates the advent of the internet.
He stated, “We are on the path of making sure the target of N19.4 trillion target we were given is achieved. We commend the recent windfall levy passed to increase FIRS’ ability to meet target and get more revenue and redistribute the wealth.
“By September, we are bringing the law that would overhaul all the process of revenue administration in Nigeria, harmonising the revenue, recording and simplifying the tax law that we have. For instance, the Stamp Duty Act of 1939, when there was no internet or connection, is what is still in use.
“Today we cannot run away from crypto currency, but as we stand currently, there is no law anywhere in Nigeria that regulates crypto currency and it is the new thing that is happening and we cannot run away from it.
“The law we are using today is 1939 law. As at that time, there was no state or local government. That is the reason the President set up the tax and fiscal reform committee to check and change all these law,” he added.
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