Nigerian Finance Bill Has Provisions Allowing The Taxing Of Crypto Transactions

According to Zainab Ahmed, the Nigerian Minister of Finance, Budget and National Planning the Nigerian finance bill released contains provisions that allow the Government to tax cryptocurrency and other digital asset transactions.

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According to the Nigerian Finance Minister, Zainab Ahmed,  provisions permitting the Government to levy taxes on cryptocurrencies and other digital currency transactions have been added to the country’s 2022 finance bill, which seeks to reform excise and duty regulations.

According to Ahmed, taxing these transactions is consistent with the Nigerian government’s overarching objective of raising more money from e-commerce.

As noted in a report by The Cable, when it starts collecting taxes on cryptocurrency transactions, Nigeria will join fellow African countries like South Africa and Kenya which already do so. Australia, India, the United Kingdom, and the U.S. are the other countries named in the report that also tax digital asset transactions.

According to a statement released by Laolu Akande, spokesperson to Vice-President Yemi Osinbajo, Ahmed updated the national economic council (NEC) on the main features of the bill at an extraordinary virtual meeting hosted last week.

The minister also noted that the proposed bill is anchored on five fundamental policy drivers including tax equity, climate change, job creation/ economic growth, tax incentives’ reform, and revenue generation/tax administration.

Commenting on the proposed bill Ahmed stated that it clarified the taxation of cryptocurrency and other digital assets in line with the Government’s policy thrust of enhancing cross-border and international taxation of growing e-commerce with emerging markets.

She further stated that by doing so, Nigeria would join the league of jurisdictions currently taxing digital assets, including the UK, the US, Australia, India, Kenya, and South Africa.

Ahmed also emphasized, “Also the bill contains an amendment under Chargeable Assets stating that ‘subject to any exceptions provided by this Act, all forms of property shall be assets for this Act, whether situated in Nigeria or not, including options, debts, digital assets, and incorporeal property generally.”

After Ahmed’s presentation, the Governors of Sokoto, Borno, Kaduna, Kebbi, and Ogun states, among others, also commented on the bill. Their input is reportedly included in the draft bill which must be sent to the Federal Executive Council. After this step, it then goes to the Nigerian national assembly.

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