Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), has said that the Federal Government is set to introduce new tax laws by September, including regulations for the cryptocurrency industry.
Addedeji was speaking on Saturday at the FIRS 2024 Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos. He highlighted the absence of current legal frameworks governing cryptocurrency in Nigeria, calling for the urgent need for regulation.
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Nigeria’s cryptocurrency industry is estimated to be worth up to $400 million and one of the largest in Africa around 33% of the country’s population holds one form of cryptocurrency.
NASS supports move
Meanwhile, the National Assembly says it will support the Federal Inland Revenue Service (FIRS) through the repeal of obsolete tax laws and re-enactment of new ones in line with current global trends.
Sen. Muhammed Musa, Chairman Senate Committee on Finance, said this on Saturday at the FIRS 2024 Stakeholders Engagement with the Senate and House of Representatives Committees on Finance in Lagos.
Musa said the move was important to give the country the right legislation for tax collection and revenue generation.
He said that the process would enable the modification of tax laws that had been in existence even before the independence of the country.
The lawmaker said: “I am sure the Executive will submit the bill when we resume from our recess to enable us amend the Acts, repeal them and re-enact the ones that will suit current trend.
“Considering innovation, crypto currencies, for example, has been one of the largest ways of making money, but in Nigeria, we do not have any law to guide that.
“With what FIRS and the legislatures are doing, we are synergising to come out with a legislation that will give Nigeria the best in getting more revenue to take care of its challenges, in terms of human development, infrastructure, among others.
“We are working together to ensure that the FIRS is fully equipped to maximise revenue collection, thereby providing the necessary resources for national development and public welfare in the country.”
According to him, the FIRS, as the bedrock of revenue generation, has a mandate that is vital to financial and sustainability of the nation.
He said it required a collective shared responsibility for agency to respond to the dynamic demands of the nation’s economy.
The lawmaker recalled that in recent years, especially under the leadership of the FIRS Executive Chairman, Dr Zacch Adedeji, the revenue service had made significant strides in enhancing tax administration and compliances, as well as repositioning the agency.
“As the world and economy evolve and the country’s landscape undergoes transformation, there is a pressing need to assess, reassess, realign and reposition the FIRS to meet new realities.
“This is not only about best practices, but also fostering an environment where transparency, accountability and innovation are at the forefront of the transformation efforts,” he said.
In his remarks, the Executive Chairman of FIRS, Dr Zacch Adedeji, said that the Federal Government would introduce new tax laws that would overhaul the whole process of the nation’s revenue administration by September.
Adedeji explained that the new law would, among other benefits, harmonise and simplify tax law in the country, adding that it would provide better service that could sustain the economy plan of President Bola Tinubu.
“For example, the stamp duty hs tax law of 1939 when there was no internet or connectivity, nor Local Government.
“Part of the reason the President Bola Tinubu set up the Tax and Fiscal reform committee is to check these lapses and take care of the concerns by September.”
The FIRS boss also emphasised the need to regulate crypto currency in Nigeria as there was no law doing so currently.
“While we can not avoid crypto currency as there is no law in Nigeria presently regulating it, there is need for a law that regulates this line of transaction.
“This is what is applicable in other countries of the world. When there are innovations of system, you must plan to regulate it in such a way that it is not injurious to economy development of Nigeria,” he said.
Adedeji commended the National Assembly for the support it extended to the revenue service over the years to enable it meet its target and distribute wealth, adding that innovations by both chambers had really helped the Federal Government.
According to him, the FIRS is on the path of actualising the target of N19.4 trillion given to it by National Assembly at the beginning of the year.
He said that the essence of the engagement was to strengthen relationship with the legislature and inform them of the impact and effectiveness of the various legislation passed on the agency.
