The Federal Inland Revenue Service, FIRS, is expected to come up with a new bill that seeks to guide the cryptocurrency industry. This was after FIRS Executive Chairman, Zacch Adedeji, disclosed it at a meeting he had with the National Assembly's Finance Committees. The bill is purported to consider the risk factors associated with them and be very helpful in supporting the economy. This has been part of the larger scheme for updating the tax laws in Nigeria so that it can fit into its changing economic environment. He appreciated the need for further consultations with lawmakers to usher in the bill, probably in September.
Senator Mohammed Musa, chairperson of the Senate Committee on Finance, conceded that cryptocurrencies have turned into a key source of revenue streams. He observed that the new regulations would make it possible for Nigeria to generate revenue for infrastructure and human capital development.
The announcement follows weeks of pressure by Finance Minister Wale Edun on the Securities and Exchange Commission to turn its attention to cryptocurrency regulation. With the newly accredited seven-member SEC board, which President Bola Tinubu approved in April, the commission will start a compliance programme to guide crypto businesses to comply with local regulations. The SEC further indicated that it is working on updating its digital asset issuance process to include Virtual Assets Service Providers.
Not only is Nigeria regulating the cryptocurrency market, but it is also using blockchain technology. The National Information Technology Development Agency has recently restructured the National Blockchain Policy Steering Committee, which overlooks the implementation and regulation of blockchain technology in Nigeria.
NITDA also intends to set up research centres across the country to explore key technologies like blockchain and artificial intelligence.
As economic challenges make cryptocurrencies more vital in Nigeria, regulation, in preventing illicit activities, becomes relevant. Similar regulatory efforts are underway in neighbouring Ghana.
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