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

A coalition of Nigerian civil society organizations (CSOs) has praised Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service (FIRS), for proposing the integration of cryptocurrencies into Nigeria's tax framework. This move, according to the CSOs, will bolster market confidence, attract foreign investment, and establish a robust regulatory framework for the cryptocurrency sector.

In a joint statement, Mallam Yakubu Mohammed, the coalition’s national secretary, and Barr Godspower Ebi, the national coordinator, noted that incorporating cryptocurrencies into the tax system would enhance consumer protection and reduce tax evasion associated with cryptocurrency transactions. They emphasized that Adedeji’s strategy would position Nigeria as an appealing destination for foreign investors seeking a regulated and secure cryptocurrency market.

Adedeji first introduced this initiative during a presentation to the Nigerian National Assembly joint committee. He highlighted the discrepancies between current Nigerian tax laws and the digital economic environment, calling for amendments to reflect the contemporary financial landscape. Mohammed and Ebi reiterated the need for updating the tax legislation to keep abreast of the rapid changes in the digital financial sector.

“Adedeji’s approach aligns with global best practices and his leadership is crucial for adapting Nigeria’s tax policies to the evolving digital financial economy,” stated Mohammed and Ebi. They underscored his role in fostering a transparent, secure, and thriving financial system in Nigeria.

Furthermore, the CSOs pointed out that existing Nigerian tax regulations, such as the outdated Stamp Duty Act of 1939, are insufficient for addressing the intricacies of digital currencies. They advocate for a specialized regulatory framework designed specifically for cryptocurrency trading, which they believe is vital for the effective management and oversight of this expanding sector in Nigeria.

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