Nigeria has signed agreements with over 100 countries to monitor the income of remote workers and online earners, according to the Presidential Committee on Fiscal Policy and Tax Reforms. Taiwo Oyedele, the committee chairman, shared this information during a webinar hosted by the National Orientation Agency, which aimed to simplify the nation’s tax system.
In accordance with the new framework, all Nigerians receiving income from international companies or online platforms must declare their earnings. This requirement includes payments from major tech companies like Google as well as smaller foreign firms that outsource work to individuals in Nigeria.
“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, emphasising that self-declaration remains the primary responsibility of taxpayers.
How the Nigerian government plans to track and tax foreign earnings
Oyedele clarified that Nigeria can track overseas deposits through partnerships under the Common Reporting Standards. Countries like the US, UK, Canada, and the UAE (Dubai) were mentioned as examples where Nigerian accounts and properties abroad are already being monitored.
The system blends self-reporting with automatic intelligence gathering. This allows authorities to issue presumptive assessments if foreign income is not declared. According to Oyedele, the framework ensures that funds entering the country are transparent and subject to tax.
The committee is working with global tech companies to tackle issues with Value Added Tax (VAT) collection. In the past, physical stores charged VAT on sales, while online services from other countries had an advantage.
“We spoke with tech firms to understand their concerns and reached agreements that now allow Nigeria to collect billions in taxes from digital platforms,” Oyedele said.
Also read: 50 new Nigerian tax exemptions and how to file them by 2026
He noted that there are inconsistencies in the new tax law, especially about turnover thresholds. Section 147 of the Nigerian Tax Administration Act sets the minimum at N100 million, while Section 202 of the Tax Act mentions N50 million. This difference happened during the gazetting process. However, the committee is moving forward and preparing amendments for next year.
The new Capital Gains Tax rules will take effect on January 1, 2026. Gains from investments made before that date will not be subject to taxation. The changes include a reset of the cost basis, along with a transitional clause. This means that only profits earned after 2026 will be taxed.
