Nigeria’s Federal Inland Revenue Service (FIRS) is set to introduce a comprehensive bill to revamp Nigeria’s tax administration system, including the regulation of the cryptocurrency industry.
FIRS Chairman, Dr. Zacch Adedeji, reportedly made this disclosure during a stakeholders’ engagement with a joint committee of the National Assembly on Finance in Lagos, Nigeria.
The proposed legislation seeks to simplify tax laws, harmonize revenue collection, and replace outdated tax regulations with contemporary frameworks.
Adedeji stressed the need to modernise Nigeria’s tax system to align with current economic realities, citing the Stamp Duty Act as an example of an outdated law that requires urgent attention.
He also noted the growing importance of the cryptocurrency ecosystem and the necessity for a regulatory framework to govern its operations.
“We cannot run away from the cryptocurrency ecosystem because it is the in-thing. But as it stands in Nigeria today, there is no law that regulates cryptocurrency operations,” Adedeji said.
The move comes amid an ongoing saga involving cryptocurrency exchanges, including the giant, Binance, which according to Nigerian officials had an untaxed turnover of over $20 billion in Nigeria in 2023 alone. The exchange is accused of not paying value-added tax and corporate tax, as well as failing to file tax returns, and is yet to be acquitted.
🇳🇬REGULATION | #Binance Had an Untaxed Turnover of $20 Billion in Nigeria in 2023 Alone, Far Above the Federal Budget for Health and Education, Says Minister of Information
The Minister noted that Binance’s turnover was not taxed by the government and exceeded Nigeria’s budget… pic.twitter.com/5pqCu4WEb9
— BitKE (@BitcoinKE) June 10, 2024
In March 2024, the Federal Inland Revenue Service (FIRS) also claimed Binance officials, Tigran Gambaryan and Nadeem Anjarwalla, failed to pay taxes on cryptocurrency transactions worth billions of Naira, though the organization later dropped charges to focus on their employer instead.
🇳🇬REGULATION | Nigerian Revenue Service Withdraws Tax Evasion Charges Against Binance Officials
Following this, Binance which allegedly had an untaxed turnover of over $20 billion in Nigeria in 2023 alone, according to Nigeria Minister of Information, Idris Mohammed, will be… pic.twitter.com/XqvRrMgo16
— BitKE (@BitcoinKE) June 15, 2024
Beyond cryptocurrency, the FIRS boss, Adedeji, expressed confidence in the agency’s ability to achieve the N19.4 trillion ($12.2 billion) revenue target set for 2024 stating that current figures indicate the agency is on track.
Senate Committee on Finance Chairman, Senator Sani Musa, commended FIRS for organising the stakeholders’ meeting and emphasized the need for a single tax collection agency to improve efficiency. He expressed the committee’s willingness to support FIRS in achieving its revenue target.
House of Representatives Committee on Finance, represented by Hon. Kalejaiye Paul, commended FIRS for its leadership and pledged the House’s support in collaborating with the agency to drive national development.
______________
About FIRS
Established in 2007 under the Federal Inland Revenue Service Act, FIRS mandate is to assess, collect, and account for revenue accruing to the Nigerian Federation, and administer relevant tax laws.
Its core goals is to:
- Enhance Compliance Measures
- Improve Management of large tax payers and sector contributors
- Broaden tax brackets and include emerging or uncaptured taxpayers
- Enhance data collection and analytics
- Drive the use of technology for transparency and efficiency
- Establish E-government Integration/Single-Window Initiatives
Follow us on X for latest posts and updates
Join and interact with our Telegram community
____________________________________________
____________________________________________
