Nigeria Partners with 100+ Countries to Track and Tax Foreign Income of Remote Workers

The Federal Government has signed agreements with more than 100 countries to monitor the income of Nigerians who earn remotely or receive payments from international companies, according to the Presidential Committee on Fiscal Policy and Tax Reforms.

The committee’s chairman, Taiwo Oyedele, disclosed this during a webinar hosted by the National Orientation Agency (NOA) aimed at simplifying Nigeria’s tax system.

Under the new framework, all Nigerians receiving income from foreign employers, clients, or digital platforms must declare their earnings, including payments from major global tech firms such as Google, as well as smaller international outsourcing companies.

“Everyone earning from abroad must declare their income. If you fail to do so, the system will track the money once it enters your bank account,” Oyedele said, stressing that self-declaration remains the primary responsibility of taxpayers.

How the Government Plans to Track and Tax Foreign Earnings

Oyedele explained that Nigeria’s participation in the Common Reporting Standards (CRS) enables tax authorities to access data on Nigerians’ bank accounts and assets in partner countries, including the United States, United Kingdom, Canada, and the United Arab Emirates (Dubai).

The framework combines self-reporting with automated information sharing, allowing authorities to issue presumptive tax assessments when individuals fail to declare foreign income.

“The system ensures that funds entering Nigeria are transparent and properly taxed,” he said.

Taxing the Digital Economy

The committee is also working with global tech companies to improve Value Added Tax (VAT) collection on online transactions. In the past, foreign digital service providers were not charged VAT, giving them an advantage over local businesses.

“We engaged the tech firms to understand their concerns and reached agreements that now allow Nigeria to collect billions in taxes from digital platforms,” Oyedele revealed.

Legal Inconsistencies and Upcoming Reforms

Oyedele noted discrepancies in the newly gazetted Tax Administration Act, where Section 147 sets a turnover threshold of ?100 million, while Section 202 lists ?50 million. He attributed this inconsistency to an error during the gazetting process but confirmed that amendments are being prepared for 2026.

Additionally, new Capital Gains Tax rules will come into effect on January 1, 2026. Under the revised law, only gains from investments made after that date will be taxable. A reset of cost basis and transitional clause will ensure that past investments are exempt.

“The goal is fairness, simplicity, and transparency in Nigeria’s tax system,” Oyedele added.