Nigeria to Present New Legislation on Crypto Asset Taxation in September 2024

In September 2024, the Federal Inland Revenue Service (FIRS) of Nigeria plans to introduce a bill that will regulate the taxation of digital assets, according to reports from local media sources. This move is set to provide a framework for taxing companies operating in the cryptocurrency and digital asset sectors within Nigeria, and it’s anticipated to bring clarity to the legal obligations for businesses providing services to Nigerian users.

Zak Adedeji, the Executive Chairman of FIRS, disclosed the agency's intentions during a meeting with members of the Finance Committee of the Nigerian National Assembly. He emphasized the importance of regulating the rapidly growing crypto market, explaining that such legislation would ensure that companies in the sector contribute to the nation’s revenue by paying taxes for the services they render to Nigerian citizens.

The upcoming bill is part of a broader effort by Nigeria to adapt its regulatory and tax policies to the evolving digital economy. As cryptocurrencies and blockchain technologies continue to expand in popularity, many countries, including Nigeria, are recognizing the need for clear regulatory measures to ensure that businesses involved in these sectors comply with local tax laws. The new legislation is expected to cover a wide range of issues related to digital assets, including taxation, service fees, and compliance requirements for both local and international companies.

By implementing this framework, Nigeria aims to create a more structured and transparent environment for crypto-related businesses, helping to ensure that the benefits of this emerging industry are shared with the country’s economy through tax contributions.