Nigeria aims to introduce a new law that will impose a tax on cryptocurrency ownership starting in September.
According to the news outlet Punch Nigeria, the Federal Inland Revenue Service (FIRS), the Nigerian government agency responsible for tax collection and fiscal revenues, has announced that a tax on cryptocurrency ownership will be introduced starting next month.
Zacch Adedeji, Executive Chairman of FIRS, confirmed the drafting of a new law to regulate the digital assets sector. The approval of the law would require the support of the National Assembly.
Adedeji stated that the main objective is to create legislation that provides clear regulation for the cryptocurrency sector.
“The plan first is to have the law that regulates it. This is done in any other place in the world when you have this innovation or system. We can no longer ignore cryptocurrencies.”
During a meeting with the Senate and the Finance Committee of the House of Representatives, Adedeji emphasized the need to update regulations, citing as an example the update of the 1939 Stamp Duty Act, legislation that governs the imposition of taxes on written documents recording transactions or legal acts in the country.
Regulatory context
Recently, Nigeria introduced a 7.5% VAT rate on all cryptocurrency transactions. The exchange KuCoin notified its users that VAT collection would begin on July 8.
At the end of 2023, the Central Bank of Nigeria (CBN) lifted the ban on banks providing accounts for crypto service providers, marking a first step towards regulating the digital assets market.
