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Nigeria Plans to Introduce Cryptocurrency Tax Law to Boost Revenue

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Nicholas Edwards
Nicholas Edwardshttps://bollywoodfever.co.in/
Nicholas Edwards is a passionate writer with a keen interest in sports and business news. With a knack for delivering insightful and engaging content, Nicholas keeps his finger on the pulse of the latest developments in these dynamic fields. His enthusiasm for both sports and business shines through in his writing, making complex topics accessible to a wide audience. Whether it's dissecting the latest game-changing play or analyzing market trends, Nicholas brings a fresh perspective and a wealth of knowledge to his articles. Email @ admin@bollywoodfever.co.in

Nigeria’s Federal Inland Revenue Service (FIRS) proposes new tax laws targeting the cryptocurrency industry, aiming to increase revenue from the rapidly growing market.

Bollywood Fever: The Nigerian government is taking steps to impose taxes on the rapidly growing cryptocurrency industry, as the Federal Inland Revenue Service (FIRS) plans to introduce new tax legislation aimed at capturing revenue from crypto-related activities. 

Despite Nigeria’s status as a major player in the global crypto market, the country currently receives minimal tax income from these activities. To address this, the FIRS is seeking the support of the Nigerian National Assembly to implement the necessary changes.

FIRS Chairman Zacch Adedeji recently presented the proposal to a joint committee of the National Assembly while discussing broader plans to overhaul the country’s tax system. 

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Adedeji emphasized the need for Nigeria to align its tax laws with the evolving economic landscape, particularly in light of the increasing use of cryptocurrency for trading, cross-border payments, and other financial activities.

Despite Nigeria’s prominent role in the global cryptocurrency market, the government has expressed concerns about not benefiting sufficiently from the economic activities related to digital currencies. 

For instance, Central Bank of Nigeria Governor Olayemi Cardoso highlighted that the leading crypto exchange Binance reportedly generated $26 billion in revenue from Nigerian transactions alone. 

However, officials claim that the exchange has not collected taxes on behalf of the government, leading to significant revenue losses.

During his presentation to the joint committee, Adedeji acknowledged the challenges posed by the lack of regulation in the cryptocurrency sector. “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 noted. 

He stressed the importance of updating Nigeria’s tax laws to make the system more efficient and capable of capturing revenue from the burgeoning crypto market.

Adedeji expressed confidence that with the proposed changes, the FIRS could achieve its ambitious revenue target of $12.2 billion (19.4 trillion naira) for the year. 

Meanwhile, Senate Finance Committee Chairman Sani Musa praised Adedeji for his proactive approach and called for the establishment of a single tax collection agency. 

House Finance Committee Chairman Kalejaiye Paul also pledged support for the FIRS’s efforts to modernize the country’s tax system.

As Nigeria moves forward with these plans, the introduction of a cryptocurrency tax law could mark a significant shift in how the country manages and benefits from the digital economy. 

The proposed legislation is expected to not only boost government revenue but also bring greater regulation and oversight to the rapidly expanding crypto market in Nigeria.


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