Nigeria’s Revenue Chief Backs Bitcoin Legislation to Achieve Revenue Goals

The Chairman of Nigeria’s Federal Inland Revenue Service (FIRS), Zacchaeus Adedeji, has hinted at his administration’s readiness to regulate cryptocurrency to boost the country’s revenue.

During an engagement with the National Assembly in Lagos, Zacchaeus stated that the time has come to regulate Bitcoin. From his first day in office, his intention has been to streamline tax collection, as the country has many taxes delegated to different entities.

According to him, the proposed law may involve streamlining tax collection to reflect current economic realities, which includes Bitcoin. He mentioned that the present tax law, the Stamp Duty Act of 1939, is outdated and needs to incorporate new technologies like Bitcoin.

He further explained that once enacted, the new law will ensure that cryptocurrency operations do not harm Nigeria’s economic development and will help his administration achieve the 2024 revenue target of N19.4 trillion.

Nigeria’s SEC in Focus

In June 2023, the Securities and Exchange Commission (SEC), a body protecting investors in Nigeria, stated in a framework for virtual assets that cryptocurrency companies wanting to register with it are required to have an office in the country. However, it remains unclear whether the country is willing to legalize Bitcoin and other crypto assets, as the SEC mentioned that crypto tokens are securities and should be registered.

Binance Issues with Nigeria

Until now, Nigeria has appeared to oppose the adoption of cryptocurrency, particularly in its stance against Binance, the world’s largest cryptocurrency exchange, over allegations of terrorism financing and attempts to disrupt the country’s economy. The country has alleged that Binance is manipulating the price of Nigeria’s Naira, an action it claims contravenes national law.

Since then, Nigeria has charged Binance and two of its employees in court, with one of the employees absconding.