FG Explains How Remote Workers, Nigerians Abroad, Will Now Be Taxed Under New Rules

• The Nigerian government has announced how the new tax rules will apply to diasporan Nigerians, remote workers, and content creators
• The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, outlined these measures recently
• Oyedele said remote workers and Nigerians living abroad will be required to self-declare their income in Nigeria

Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.

The Federal Government has announced new tax rules that will apply to Nigerians living abroad, remote workers, social media influencers, and other income earners, as part of sweeping fiscal reforms aimed at boosting national revenue.

According to Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, these measures are designed to close loopholes, ensure fairness, and help Nigeria raise tax revenue to 18% of Gross Domestic Product (GDP) within three years.

“If you are a remote worker, you are a worker. You earn a salary, whether from an American or European company, and you will be required to self-declare your income in Nigeria,” Oyedele said at a recent event.

Remote workers and influencers to self-declare income

Oyedele explained that under the new rules, remote workers must file their income declarations since foreign employers cannot deduct tax on their behalf.

Failure to declare, he warned, would allow the government to trace inflows and impose tax, penalties, and interest on undeclared income.

Social media influencers, often overlooked in taxation, will also be required to declare and pay tax on their earnings from brand deals, sponsorships, and online activities.

Diaspora Nigerians and dual citizens: Who pays?

According to a BusinessDay Report, the committee also clarified how Nigerians in the diaspora will be taxed.

Oyedele noted that dual citizens who spend more than six months (183 days) in Nigeria in a year would be considered tax residents and must pay tax on global income earned.

However, to prevent double taxation, the new laws include provisions for unilateral tax credits. This allows Nigerians abroad to claim credit for taxes paid in Nigeria when filing in their host countries.

“If you spend four months in Nigeria and eight months abroad, you’re not a tax resident here. But if you rent out a house in Nigeria, you must pay tax on that property income,” Oyedele explained.

New laws cover every service

In a controversial clarification, Oyedele clarified that the tax applies to all income sources without distinction.

“Anyone rendering a service, including sex workers, will be taxed from January 2026 as long as income is received,” he said, stressing that the law does not distinguish between legitimate and illegitimate activities.

Progressive approach to capital gains and crypto

On capital gains, Oyedele revealed that individuals who sell assets worth up to ₦150 million in a year, with gains not exceeding ₦10 million, will be exempt from paying tax.

The new law also allows taxpayers to offset losses against gains before tax is charged, making the system more equitable.

For cryptocurrency, the rules will also change. Unlike the old regime, which only taxed gains, the new framework recognises losses as well.

“We take your net position—gains minus losses—so you only pay on actual profit, but you must self-declare,” Oyedele noted.

Public enlightenment before the 2026 rollout

With the new tax laws set to take effect from January 2026, the Oyedele committee has embarked on a broad public education campaign to help citizens and businesses understand their obligations.

Food, education, and agriculture get VAT-free relief

Legit.ng reported that Nigeria’s tax system is undergoing its biggest transformation since independence, with the Federal Government exempting food, education, shared transport, and agriculture from value-added tax (VAT).

The landmark reforms, designed to ease the burden on citizens and businesses while boosting government revenue, were announced by Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS).

Speaking during an interview marking his second year in office, Adedeji credited President Bola Tinubu with fulfilling his campaign promise to simplify tax compliance and support business growth.

Source: Legit.ng