The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has addressed widespread confusion about Nigeria’s new tax reform laws and their impact on citizens living overseas. He emphasized that Nigerians abroad are not required to obtain a Tax Identification Number (TIN) or submit tax returns unless they earn income from Nigerian sources.
According to Oyedele, the rules are straightforward: anyone who does not receive salary, profit, or income from employment or business activities within Nigeria is outside the scope of the country’s tax obligations. He noted that this clarification was necessary following questions raised by Nigerians in the diaspora about how the reforms affect them.
“A TIN is unnecessary for Nigerians who don’t earn employment or business income from Nigeria. Filing tax returns only applies to those earning from within the country,” he explained.
Foreign Income and Remittances Remain Untaxed
Oyedele assured Nigerians living abroad that foreign income sent back home will not be taxed in Nigeria, regardless of whether it was taxed in another country or not. He stated that the new tax framework clearly exempts income earned outside Nigeria by non-residents.
He also highlighted that Nigeria’s Double Taxation Agreements (DTAs) with several countries, and new relief measures for nations without such agreements, ensure that individuals do not pay tax twice on the same income.
“Income earned abroad and brought into Nigeria by a non-resident individual is specifically exempted from tax,” he added.
Furthermore, Oyedele reiterated that personal remittances, family support, and gifts are not taxable, as they do not constitute income under the law. Only genuine earnings such as wages, profits, or investment returns can be taxed.
Simplified Tax Compliance and Digital Access
The committee chairman explained that the Nigerian government has made compliance easier through digital solutions such as TaxProMax, allowing those who need to register, obtain a TIN, or file taxes to do so remotely.
He also clarified that a TIN is not required to open or maintain a regular bank account, unless that account is used for business purposes or to receive taxable income.
Tax Residency Based on Time Spent in Nigeria
Oyedele outlined how tax residency is determined under the new system. The rule uses a 183-day threshold, meaning anyone who spends up to or more than 183 days in Nigeria within a year becomes a tax resident.
Non-residents, on the other hand, are only taxed on income earned from Nigerian sources such as property rentals, dividends, or local business operations. Nigerians who live abroad and earn their income overseas remain exempt from Nigerian taxation, and having dual citizenship does not alter this status.
Exemptions for Pensions and Remote Workers
Clarifying how the rules apply to remote work and pensions, Oyedele explained that pensions, stipends, or earnings from remote work abroad are not taxable in Nigeria unless the work was performed in Nigeria.
He said that remote workers will pay taxes in the country where they reside or perform their services, not simply where their payment originates. Nigerians classified as tax residents, however, are taxed on their worldwide income, though they are entitled to reliefs, deductions, and exemptions as provided by Nigerian law.
Overview of the 2025 Tax Reforms
The new tax reforms, signed into law on June 26, 2025, and officially gazetted in September 2025, are part of a major overhaul of Nigeria’s tax and revenue system. The reforms aim to modernize tax administration, simplify compliance, and improve transparency in Africa’s largest economy.
The legal framework is built around four key laws:
• Nigeria Tax Act (NTA), 2025
• Nigeria Tax Administration Act (NTAA), 2025
• Nigeria Revenue Service (Establishment) Act (NRSEA), 2025
• Joint Revenue Board (Establishment) Act (JRBEA), 2025
Oyedele said these laws collectively mark the beginning of a simpler and fairer fiscal system, designed to support economic growth while protecting taxpayers’ rights.
