US to Impose Tax on Diaspora Remittances After CBN Launched Non-Resident BVN Platform for Nigerians

• The US House of Representatives is proposing a five per cent tax on all remittances sent abroad
• The new bill targets financial outflows from US residents to recipients abroad, including Nigeria
• Experts say if successful, the bill will impact Nigeria’s foreign exchange inflows through diaspora remittances

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The United States have introduced a bill proposing a five per cent excise tax on all remittances sent abroad.

The bill was unveiled by the US House of Representatives on Monday, May 12, 2025, targeting financial transfers from US residents to recipients abroad.

Nigeria records $4.22bn inflows from the diaspora

Experts have said that the bill will affect Nigeria’s foreign exchange inflows from the US, as it heavily relies on diaspora remittances.

According to data from the Central Bank of Nigeria (CBN), between January and October last year, Nigeria received about $4.22 billion in diaspora remittances via International Money Transfer Operators (IMTOs).

The apex bank did not, however, disclose the percentage of the funds that came from the US.

Exemptions under the new bill

Vanguard reports that the sender would pay the tax, and it would be collected quarterly by the US Treasury Department.

However, the proposed bill states that verified US citizens would be exempt from the tax and could claim it as a credit.

It also exempts remittances sent through authorised channels by verified US senders.

The development is the latest among tough measures under President Donald Trump, which has increased the tempo of his immigration and trade policies on non-citizens.

Reports say that in  January 2025, the US Immigration and Customs Enforcement (ICE) listed almost two million undocumented immigrants for deportation, while Trump intensified calls to end birthright citizenship for children born to immigrants.

CBN launches BVN platform for Nigerians in diaspora

Trump's sweeping global tariffs have been widely criticised after imposing levies on exports to the US, including a 14% tariff on Nigerian goods.

The development comes as CBN officially launched the Non-Resident Bank Verification Number (NRBVN) platform.

The platform was developed in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS) to unlock financial access, marking a significant milestone in Nigeria’s financial inclusion journey

The new platform is a bold move to remove the hassles for Nigerians abroad from obtaining their BVNs.

Forex inflow to Nigeria declines

Legit.ng earlier reported that foreign exchange inflows to the Nigerian Foreign Exchange Market (NFEM) declined in April, showing the effect of the global tariff war and uncertainties caused by falling oil prices.

The drop was reportedly caused by a 16.5% decline in foreign-sourced inflows to $657.4 million, the lowest since October 2024.

Also, foreign portfolio investments declined by 15.7%, while inflows from other corporates fell by 40.5%. According to reports, local sources, which accounted for 82.1% of total inflows, also recorded a slight decline of 2.9% to $3.02 billion.

Source: Legit.ng