Nigeria Set to Propose Crypto Tax Legislation by September: Report

Nigeria's Federal Inland Revenue Service (FIRS) plans to present a bill to tax the cryptocurrency industry by September, according to a report from Punch Nigeria on Saturday. The proposed legislation would require approval from the National Assembly.

Zacch Adedeji, executive chairman of FIRS, disclosed the plan during a meeting with the National Assembly's Senate and House Committee on Finances. “The first step is to establish the law that will regulate it, which is why we are engaging with the legislature, as they will provide the foundation for taxation,” Adedeji explained.

Some officials have blamed cryptocurrencies for contributing to the decline of Nigeria's currency, the naira, against the dollar over the past year. Central Bank Governor Olayemi Cardoso accused crypto exchange Binance of facilitating the untraceable exit of $26 billion from the country last year, impacting tax revenues and leading to the arrest of Binance executive Tigran Gambaryan.

Adedeji noted that other countries are also moving to tax cryptocurrencies. “... so you just have to get ready for it because you can’t avoid it. We must plan to regulate it in a way that supports the economic development of Nigeria,” he said, according to the report.

Last month, crypto exchange KuCoin announced it would begin collecting VAT on transaction fees for Nigerian users.