Nigerian civil groups support proposed crypto tax

A coalition of Nigerian civil society organisations (CSOs) has expressed strong support for Zacch Adedeji, head of the Federal Inland Revenue Service (FIRS), for his proposal to incorporate cryptocurrencies into the country’s tax system.

The CSOs believe that integrating crypto into the tax framework will enhance market confidence and attract foreign investment, contributing to the growth of the digital economy in Nigeria.

In a statement, the coalition’s national secretary, Mallam Yakubu Mohammed, and national coordinator, Barr Godspower Ebi, emphasised the potential benefits of this move, including increased consumer protection and a reduction in tax evasion within the cryptocurrency market.

“Dr Adedeji’s commitment to modernizing Nigeria’s tax system is a bold step towards embracing the digital economy. His efforts will not only boost confidence in the cryptocurrency market but also protect consumers, reduce tax evasion, and attract international investment,” the statement read.

They also highlighted that aligning Nigeria’s tax laws with current digital financial realities is crucial for the country’s economic progress.

Adedeji initially introduced this proposal during his appearance before the Nigerian National Assembly joint committee, where he pointed out that the existing tax laws are outdated and not reflective of the modern economy.

Mohammed and Ebi agreed, noting that the revision of tax laws is necessary to adapt to the evolving digital economy and to ensure that Nigeria remains competitive on the global stage.

They praised Adedeji’s approach as being in line with global best practices, underscoring the importance of leadership that can guide Nigeria’s tax policies to keep pace with the rapidly changing digital financial landscape.

The CSOs also pointed out that Nigeria’s current tax regulations, such as the Stamp Duty Act of 1939, are inadequate for managing the complexities of cryptocurrencies.

They argued that a regulatory framework specifically designed for cryptocurrency trading is essential for the effective management and regulation of the sector in Nigeria.

According to the CSOs, such a framework would not only provide clarity and security but also foster a more transparent and thriving financial system in the country.

The proposed tax integration is seen as a significant step toward creating a more robust and secure financial environment that can accommodate the growing influence of digital currencies in Nigeria’s economy.

The CSOs believe that with the right regulatory measures, Nigeria can better manage its crypto sector, positioning itself as a leader in the digital economy within Africa.