FameEX Hot Topics | Nigerian Civil Society Groups Applaud Crypto Tax Proposal

A coalition of Nigerian civil society organizations (CSOs) has commended Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), for his initiative to integrate cryptocurrencies into the Nigerian tax system. This proposal, according to the CSOs, will enhance market confidence, attract foreign investment, and provide a more structured regulatory framework for managing the cryptocurrency sector effectively.

In a joint statement, the coalition’s national secretary, Mallam Yakubu Mohammed, and national coordinator, Barr Godspower Ebi, articulated that the inclusion of cryptocurrencies in the tax system could bolster consumer protection while simultaneously reducing tax evasion associated with crypto transactions. They believe that this strategic move will make Nigeria an attractive destination for foreign investors looking to engage with a regulated and secure crypto market.

The initiative was first announced by Adedeji during his presentation to the Nigerian National Assembly joint committee. He emphasized the misalignment of current Nigerian tax laws with the digital economic landscape, advocating for necessary amendments to reflect modern financial realities. Mohammed and Ebi supported this view, stressing the importance of modernizing tax legislation to keep pace with the rapidly evolving digital financial sector.

Mohammed and Ebi further explained, "Adedeji’s approach not only aligns with global best practices but also ensures that Nigeria’s tax policies adapt to the changing dynamics of the digital financial economy. His leadership is pivotal in creating a more transparent, secure, and thriving financial system in Nigeria."

The CSOs also noted that Nigeria’s existing tax regulations, including antiquated laws like the Stamp Duty Act of 1939, are inadequate for handling the complexities of digital currencies. They are advocating for a tailored regulatory framework designed specifically for cryptocurrency trading, essential for effective management and oversight of this burgeoning sector in Nigeria.

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