Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), has announced intentions to implement a new law aimed at reforming revenue administration in Nigeria, with a target date set for September.

He expressed concerns regarding the absence of legislation governing the current digital market, particularly in relation to cryptocurrency.

Adedeji made these remarks during the 2024 Stakeholders’ Engagement with the Senate and House Committees on Finance, an event organized by the Intergovernmental Relations Department of the FIRS, under the theme: “Repositioning The FIRS To Achieve Its Mandate.”

He elaborated on the government's strategy to regulate cryptocurrency in a manner that supports the nation's economic growth, emphasizing the need for revenue harmonization, as well as the revision and simplification of existing tax laws.

He pointed out that Nigeria continues to rely on the Stamp Duty Act of 1939, a law established before the advent of the internet, which underscores the necessity for President Bola Tinubu to establish a tax and fiscal reform committee to address these outdated regulations.

He stated, “We are committed to ensuring that we meet the target of N19.4 trillion assigned to us. We appreciate the recent windfall levy that has been enacted to enhance the FIRS's capacity to achieve this target and to facilitate wealth redistribution.”

By September, we will introduce legislation aimed at completely reforming the revenue administration process in Nigeria. This initiative involves harmonizing, recoding, and simplifying our existing tax laws. For example, the Stamp Duty Act of 1939 was established in an era devoid of internet connectivity.

In the current landscape, we cannot ignore the rise of cryptocurrency; however, as it stands, there is no regulatory framework governing cryptocurrency in Nigeria, despite its growing significance. The legislation we currently rely on dates back to 1939, a time when there were no State or Local Governments. This underscores the necessity for the President to establish the tax and fiscal reform committee to review and amend these outdated laws.

Additionally, Senator Mohammed Musa, Chairman of the Senate Committee on Finance, emphasized the collaboration between the Federal Inland Revenue Service (FIRS) and legislators to develop laws that will optimize Nigeria's revenue generation, addressing the evolving needs in both infrastructure and human capital development.

Senator Musa stated, "Effective revenue generation requires appropriate legislation, which can only be achieved through collaboration between the revenue-collecting agency and the lawmakers. The Senate and the House of Representatives are working in tandem with the FIRS to establish the necessary legal framework for tax collection."

He further noted that many of the existing laws predate Nigeria's independence and are in dire need of modification. He expressed confidence that upon resuming from recess, the Executive will present a bill for amending, repealing, and enacting new legislation that aligns with contemporary systems.

Cryptocurrency has emerged as a significant avenue for wealth generation today, yet Nigeria lacks a legal framework to regulate it.

The FIRS and legislators are committed to formulating legislation that will enhance Nigeria's revenue generation capabilities, addressing the pressing changes in both infrastructure and human capital development.

Upon our resumption, we will prioritize this matter and anticipate the collaboration of Nigerians, both corporate entities and individuals.

With a population exceeding 250 million, it is concerning that fewer than 15 percent are fulfilling their tax obligations. This initiative is both timely and essential as we strive to enhance the physical infrastructure of Nigeria.

The partnership between the Senate and the House finance committees highlights the necessity of a coordinated strategy to tackle the challenges and opportunities that lie ahead.

The Federal Inland Revenue Service (FIRS) serves as the cornerstone of our revenue generation efforts, holding a mandate that is crucial for the financial stability and sustainability of our nation.

It is imperative that this agency operates not only effectively but also with agility to meet the evolving demands of our economy, a responsibility that we all share.

As the global economy progresses and our own economic environment transforms, there is an urgent need to evaluate, reassess, realign, and reposition our strategies to adapt to these new realities.

This entails not only the adoption of best practices but also the cultivation of an atmosphere where transparency, accountability, and innovation are prioritized in our revenue generation initiatives.

In his comments, James Faleke, Chairman of the House Committee on Finance, noted that while there is a universal desire for improvement and development within the nation, there is a reluctance to contribute to the collective financial resources.

"We are more focused on sharing, yet many are unwilling to contribute, overlooking the fact that the developed nations we often reference have achieved their status through the contributions of every citizen," Faleke remarked.