The Federal Government has partnered with more than 100 countries to share financial data and track the income of Nigerians earning remotely or working abroad, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
Speaking at a webinar hosted by the National Orientation Agency (NOA) on Wednesday, themed “Simplifying Nigeria’s Tax System,” Oyedele said the move is part of a global effort to ensure compliance with tax obligations in the fast-growing digital economy.
He explained that all remote workers, freelancers, and online income earners living in Nigeria, regardless of where their employers or clients are based, are required to declare their earnings and remit taxes.
“Whether you earn from Google, a firm in the Bahamas, or any foreign platform, you are required to declare your income yourself,” Oyedele said. “If you fail to do so, the system will gather intelligence when the money hits your bank account.”
Oyedele revealed that Nigeria is already receiving financial data from partner nations under the Common Reporting Standard (CRS), an international framework for sharing tax-related information.
“Nigeria has signed agreements with over 100 countries to receive data about citizens who have money or property abroad, from Dubai to the US, Canada, and the UK,” he said. “We already have that information.”
He urged Nigerians to voluntarily comply, warning that non-disclosure could trigger government audits and presumptive tax assessments. “If you don’t do the right thing, the government will eventually come to you with evidence,” he cautioned.
Oyedele also disclosed that Nigeria began discussions with major global tech companies three to four years ago to address the imbalance in Value Added Tax (VAT) between online and traditional businesses. “If a brick-and-mortar shop must charge VAT, then an online platform offering the same service should do the same,” he said. “We engaged these companies, listened to their concerns, reached an agreement, and today, Nigeria earns billions in VAT from those digital giants without conflict.”
The tax reform chief acknowledged some errors and inconsistencies in recently enacted tax legislation, particularly the conflicting turnover thresholds in the Nigerian Tax Administration Act (₦100 million) and the Nigerian Tax Act (₦50 million).
He attributed the mix-up to a gazetting error during the final editing process after President Bola Tinubu signed the bills into law on June 26, 2025. “It was a typesetting error,” Oyedele explained. “Despite our efforts to fix it, we have decided to move forward while preparing an amendment list for next year. The correct exemption threshold remains ₦100 million.”
Oyedele further clarified that the new Capital Gains Tax (CGT) framework will not apply retroactively. The tax, which takes effect on January 1, 2026, will only affect new investment gains made after that date. “We introduced a cost basis reset and grandfathering clause to protect old gains,” he said. “Only profits earned after the reform takes effect will be taxed.”
