FIRS Proposes Bill to Overhaul Revenue Administration and Regulate Cryptocurrency
By Patience Ikpeme
The Federal Government is set to introduce an Executive Bill aimed at a comprehensive overhaul of revenue administration in Nigeria. The bill will also include the regulation of the burgeoning cryptocurrency industry.
This was disclosed by the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, during a stakeholders’ engagement with a joint committee of the National Assembly on Finance in Lagos, on Saturday.
The proposed bill seeks to address a range of issues within the current tax system, including the harmonization of revenue collection processes, the simplification of tax laws, and the replacement of outdated tax legislation with new laws that reflect the modern economic landscape.
Adedeji’s statement, released through his Special Adviser on Media, Dare Adekanmbi, underscored the urgent need to update Nigeria’s tax framework, which he described as not only obsolete but also inadequate to meet the demands of a rapidly evolving economy.
“By the special grace of the Almighty God, we will bring a bill for a law to overhaul the whole process of revenue administration in Nigeria. Part of what we intend to achieve with this is to harmonise revenue collection, making tax laws very simple to understand and to be in tune with our current realities,” Adedeji said.
He noted the obsolete nature of laws like the Stamp Duty Act of 1939, which was enacted long before the advent of the Internet and the creation of states and local government councils in Nigeria.
Adedeji also touched on the growing influence of the cryptocurrency ecosystem, a sector that has remained largely unregulated in Nigeria despite its rapid expansion. “Today, we cannot run away from the cryptocurrency ecosystem because it is the in-thing. But as it stands in Nigeria today, there is no law that regulates cryptocurrency operations. We need a law that regulates that area of our economy,” he said, stressing that regulation should be crafted in a way that supports economic development without stifling innovation.
According to Adedeji, the proposed legislation will seek to align Nigeria’s tax framework with global best practices, ensuring that the country’s revenue administration is efficient, transparent, and capable of supporting national development goals.
Adedeji also expressed confidence that the FIRS will meet its ambitious revenue target of N19.4 trillion for the year 2024. “We are almost in the third quarter of the year and with the figures we are seeing so far, I can say we are on the path to achieving our target,” he said,.
The stakeholders’ meeting provided an opportunity for key lawmakers to voice their support for the FIRS’s reform agenda. Senator Sani Musa, Chairman of the Senate Committee on Finance, commended the FIRS for its efforts to streamline revenue collection and proposed that the agency should be the sole regulator and collector of all taxes across the Federation. He also lauded the National Single Window programme, which he believes will address inefficiencies in the current revenue collection system.
“This is another opportunity for us as lawmakers to listen, learn and contribute on how best to support the FIRS to achieve its target. It is also an opportunity for FIRS to share its challenges, successes and strategies for the future,” Musa stated. He emphasized the importance of collaboration between the legislative and executive branches to ensure that the FIRS is fully equipped to fulfill its mandate.
Honourable James Faleke, Chairman of the House of Representatives Committee on Finance, echoed Senator Musa’s sentiments through his representative, Honourable Kalejaiye Paul. Faleke praised Adedeji’s leadership at the FIRS, acknowledging the difficulties faced by the agency in persuading citizens to contribute to the national purse. He stressed the need for continued cooperation between the FIRS and the National Assembly to advance Nigeria’s economic development.
“It is very important to note that everyone wants to go to heaven, but they don’t want to die. Everyone wants improvement and development in the Federation, but nobody wants to contribute to the purse,” Faleke remarked, drawing attention to the challenges of revenue collection in a country where citizens are often more interested in sharing wealth than contributing to it.
The proposed Executive Bill, once submitted to the National Assembly, is expected to trigger significant debate among lawmakers, policymakers, and the public. If passed, the legislation will represent a major step towards modernizing Nigeria’s tax system, potentially unlocking new sources of revenue and enhancing the country’s economic resilience in the face of global challenges.
