Nigerian Govt Makes Move to Implement New Tax Law

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has announced plans to introduce a comprehensive new tax law aimed at overhauling Nigeria's revenue administration processes.

This announcement was made during the 2024 stakeholders’ engagement with the Senate and House Committees on Finance, organized by the Intergovernmental Relations Department of the FIRS, under the theme “Repositioning The FIRS To Achieve Its Mandate.”

Adedeji highlighted the urgent need for regulatory updates, particularly in the digital market, including cryptocurrency, which currently lacks any governing laws in Nigeria.

He emphasized that the existing Stamp Duty Act of 1939 is outdated, having been established long before the advent of the internet and modern digital transactions. This inadequacy has prompted President Bola Tinubu to establish a tax and fiscal reform committee tasked with revising and updating these archaic laws.

The proposed law aims to harmonize revenue collection, streamline recording processes, and simplify the existing tax framework.

Adedeji stated, "By September, we are bringing the law that would overhaul all the process of revenue administration in Nigeria, harmonising the revenue, recording and simplifying the tax law that we have."

In addition to addressing digital economy regulations, the new law will also focus on achieving the ambitious revenue target of N19.4 trillion set for the FIRS.

The recent introduction of a windfall levy is expected to bolster the FIRS’s capacity to meet this target, thereby enhancing revenue generation and wealth redistribution.

Adedeji also pointed out the necessity of regulating cryptocurrency to prevent potential economic harm while ensuring it contributes positively to Nigeria's economic development.

He remarked, "Today we cannot run away from cryptocurrency, but as we stand currently, there is no law anywhere in Nigeria that regulates cryptocurrency and it is the new thing that is happening and we cannot run away from it."