- The measure seeks to place a tax on cryptocurrencies considering their rising profile.
- Gains in the purchase of digital assets, for example crypto, were subject to a different 10% tax.
The Finance Act, 2023 was signed into law by outgoing Nigerian President Muhammadu Buhari on his last day at work, May 28. The legislation enacts numerous tax changes made to bring the country’s tax system in to the contemporary era. Gains in the purchase of digital assets, for example cryptocurrency, were subject to a different 10% tax under its terms.
The all-encompassing bill was drafted using the aim of growing government openness, growing tax collection, which stimulates the economy. The measure seeks to place a tax on cryptocurrencies considering their rising profile.
Recognizing Crypto as Legal Assets
To ensure that individuals who own digital assets pay their great amount of taxes for Nigeria’s development, the federal government has had this task to level the arena. This demonstrates Nigeria’s knowledge of the economic and political need for digital assets and it is dedication to keeping its tax system up-to-date with these developments.
The extra taxes may be described as a step towards recognizing cryptocurrencies as legal assets and integrating them in to the current financial and regulatory system, based on Barnette Akomolafe, Chief executive officer from the crypto payments service M7pay. This follows a Feb 2021 ban through the Central Bank of Nigeria on commercial banks serving cryptocurrency exchanges.
Another cryptocurrency expert in the area cautioned the valuation, transaction monitoring, and mix-border complexity of digital assets will make them hard to tax. Additionally they stressed the requirement for governments setting obvious norms and supplying enough citizen education and assistance. More crypto aficionados appeared to accept this point of view.