The Federal Inland Revenue Service (FIRS), Nigeria’s tax authority, plans to introduce a bill to regulate the cryptocurrency sector by the end of 2024.

Speaking at a recent stakeholder engagement session with the National Assembly’s Finance Committees, FIRS Executive Chairman Zacch Adedeji said the country is set to propose a bill that would introduce laws to regulate the crypto sector, mitigate associated risks, and benefit the nation’s economy.

“Today, we cannot run away from cryptocurrency. But as we are here today, there is no law anywhere in Nigeria that regulates cryptocurrency. But it is the new thing that is happening, and we cannot run away from them.”

The new regulation is part of a broader effort to modernize existing laws in the taxation system to keep up with Nigeria’s evolving economic landscape. Adedeji urged the FIRS’s collaboration with lawmakers to implement the bill, with the first iteration expected to be introduced in September.

Senator Mohammed Musa, chairman of the Senate Committee on Finance, acknowledged that cryptocurrency has become the “largest way of making money,” adding that the bill would introduce regulations to help Nigeria generate revenue for infrastructure and human capital development.

Nigeria Focuses on Crypto as Adoption Grows

The recent announcement follows calls from Nigeria’s Finance Minister, Wale Edun, who has requested Nigeria’s newly inaugurated Securities and Exchange Commission (SEC) board to focus on regulating the cryptocurrency sector.

Approved by President Bola Tinubu in April, the seven-member SEC board has introduced a compliance program to help crypto businesses adhere to local regulations. Further, the commission has announced plans to revamp its digital asset issuance process to include Virtual Assets Service Providers.

Blockchain Implementation in Nigeria

The West African country has also turned its attention to blockchain technology. The National Information Technology Development Agency (NITDA), Nigeria’s IT sector regulator, has recently restructured the National Blockchain Policy Steering Committee, a government-appointed body that oversees the implementation and regulation of blockchain technology within the country.

More recently, the NITDA disclosed plans to deploy research centers across Nigeria, focusing on key technologies like blockchain and artificial intelligence as part of its efforts.

Cryptocurrencies have become a significant financial tool for developing countries like Nigeria, where economic difficulties have driven residents to seek alternative means of retaining their wealth. However, this growing reliance has also highlighted the need to regulate the crypto sector, often plagued by illicit activities.

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