In a significant development for Nigeria’s fiscal landscape, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, recently emphasized that Nigerians working remotely for foreign companies are legally required to declare their income and pay taxes in Nigeria.
This directive, part of broader tax reforms set to take effect on January 1, 2026, aims to ensure comprehensive tax compliance and broaden the nation’s revenue base.
According to Oyedele, income earned by Nigerians through remote work, social media influencing, or online business is taxable under the new laws. He clarified that even if an individual works for a company based outside Nigeria, the income remains subject to Nigerian tax laws.
“If you are a remote worker, you are a worker. You just happen to do your work remotely,” he stated. “That amount of money they pay to you is your salary. You will self-declare it.”
The onus of compliance lies with the individual. Failure to declare income can lead to penalties, including taxes on undeclared earnings, interest for delayed payments, and additional charges. Oyedele emphasized that the government has mechanisms to trace unreported income through financial transactions.
“If you now refuse to declare, the government will see the movement of the money, and say you failed to declare, and they will deem it as your income, charge you tax on it, add penalty, add interest for delayed payments,” he warned.
This directive extends to various categories of income earners, including remote workers, social media influencers, and individuals engaged in online business activities.
All are expected to self-declare their earnings and fulfill their tax obligations accordingly. The reforms aim to close existing tax gaps and promote fairness in the tax system.