Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), announced plans to introduce new tax laws by September 2024 to regulate the cryptocurrency industry in Nigeria.

The upcoming legislation aims to address the burgeoning cryptocurrency market, harnessing its benefits while mitigating potential economic risks.

Adedeji emphasized the necessity for a regulatory framework for cryptocurrency transactions to align Nigeria with global practices and safeguard its economic development.

Sen. Musa highlighted that existing tax laws, some of which predate Nigeria's independence, require updates to reflect modern technological advancements and economic realities.

The proposed legislation seeks to modernize outdated tax laws that are ill-suited for the digital age.

The cryptocurrency community is advocating for responsible regulation of virtual assets, emphasizing the need for measures that foster market growth rather than impose restrictions.

Sen. Muhammed Musa, Chairman of the Senate Committee on Finance, reiterated the importance of appropriate legislation to enhance tax collection and revenue generation.

The National Assembly has expressed support for FIRS, aiding the agency in its pursuit of a N19.4 trillion revenue target for the year.

Recent appointments to the Securities and Exchange Commission (SEC) board, approved by President Bola Tinubu, are expected to significantly influence financial regulation in Nigeria.

In parallel, the SEC has begun amending its rules regarding digital asset issuance to strengthen the regulatory framework for evolving markets.

During a recent FIRS stakeholder engagement event in Lagos, Dr. Adedeji underscored the urgent need for current legal frameworks to govern cryptocurrency in Nigeria.

Nigeria's cryptocurrency market is valued at approximately $400 million, with around 33% of the population involved in some form of cryptocurrency, and transaction volume grew by 9% year-over-year, totaling $56.7 billion from July 2022 to June 2023.