Nigeria’s sweeping new tax framework, scheduled to take effect in January 2026, is triggering significant debate over how far government agencies should be allowed to go in collecting and analysing citizens’ personal financial information.
Although the reforms aim to boost revenue and expand the tax net, the most contentious issue emerging from public discourse is the extent of digital surveillance the government may deploy to track the income of remote workers and Nigerians with foreign assets.
The tax overhaul, signed into law on June 26, 2025, spans four major legislations: the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025.
Collectively, the new laws seek to modernize the country’s tax architecture, but the methods proposed for data collection are raising red flags among privacy advocates and remote-work professionals.
Government’s expanded access to global financial data
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, recently attempted to clarify public concerns by emphasizing that Nigeria already receives substantial financial information from foreign jurisdictions.
- Through the Common Reporting Standards (CRS), more than 100 partner countries transmit data on the foreign accounts and assets of Nigerian residents.
- According to Oyedele, the increased visibility into cross-border financial flows is central to the government’s goal of curbing tax evasion.
- He noted that Nigerians who fail to voluntarily report their income may later face presumptive assessments based on data already in government custody.
Legal experts warn of ethical and privacy risks
However, privacy specialists argue that the approach could violate citizens’ rights if not handled with transparency.
Abuja-based lawyer Ayomide Ahmed explained that collecting sensitive personal data without the subject’s knowledge risks crossing ethical and legal boundaries.
- He noted that while basic identifiers such as the Bank Verification Number (BVN) or National Identification Number (NIN) may be legally accessed under existing laws, sensitive personal data—including income histories, foreign asset records, and location-based information—typically requires explicit consent.
- Ahmed further argued that the scale of the government’s ambition makes it impractical to demand information directly from thousands of global companies, meaning a coordinated, compliance-driven system will be necessary. But even that, he stressed, must respect Nigeria’s data-privacy standards.
“I think you can consider it a breach of data privacy. By the time you start going behind the backs of the owners of these personal data, there is a form of ethical violation if they don’t inform the Nigerians whose data is being collected.
“We have two types of data. The ordinary personal data and the sensitive personal data. There’s no how sensitive personal data is not going to fall under this category of data that they are collecting. So, if they must collect sensitive personal data, they know that they have to get consent,” he said.
Nigerians abroad express confusion and worry
The reforms are also generating concern within the diaspora community. Nigerian tech entrepreneur and CEO of Cush, Wale Ameen, who is a resident of the UK, said a lot still needs to be explained to the public about the data tracking.
“Nigeria’s plan to tax remote workers personally touches me because I also work remotely. So, what I’ve read is that the majority of what is being tracked are probably details that are already out there, you know, general workers’ details for regular legal issues. So, there isn’t really much.
“But then again, if it gets to a point where there’s location tracking and GPS tools are being used, then there are issues. These are issues that we need to now look at because they violate a person’s privacy.
“There is also the question around, are we looking at just Nigerians based in Nigeria and working for foreign companies? Or are we looking at Nigerians in the diaspora who are working with foreign companies? So, those are contexts that we need to understand,” he stated.
Ameen also decried the poor state of the country. To him, the issue is not really about the taxation, but about the end product. He said there’s a need for people to see where the money is going and what it is being used for.
“For some of us who have been privileged to travel out of Nigeria and see how things work, we see that even though it could put a strain on you as a worker to pay these taxes, the comforting part of it is that you see where this money is going to. Is it healthcare? Is it infrastructure? You know, you see it. Is it basic amenities, you know, which make life decent to live in. But in Nigeria, the reverse is the case.”
U.S.-based Nigerian lawyer Barrister Tola stated that individuals should ordinarily be informed before their data is accessed.
While acknowledging the government’s authority to make and enforce tax laws, he maintained that communication and clarity are essential to public trust.
Economists call for transparency and public confidence
Speaking on the tax reform, economist and CEO of Centre for the Promotion of Private Enterprise (CPPE) Dr. Muda Yusuf noted that the principle behind taxing global income is widely accepted internationally.
- However, he cautioned that Nigerian households already shoulder significant private spending on services the state fails to provide—education, healthcare, transport, and agricultural support, among them.
- Yusuf argued that without fiscal transparency and better public service delivery, government efforts to widen tax collection, including tracking income abroad, will face resistance.
“There has to be full fiscal disclosure as to how much they are earning from these taxes and what they are spending it on. That transparency is not there,” Yusuf said.
What you should know
Oyedele had earlier clarified how the newly enacted tax reform laws would affect Nigerians living abroad, addressing key concerns around Tax Identification Number (TIN) and residency rules.
In a Q&A issued to address concerns of Nigerians in the diaspora, Oyedele clarified that Nigerians abroad are not obligated to obtain a Tax Identification Number (TIN) or file annual tax returns in Nigeria unless they earn income from Nigerian sources, such as employment or business operations within the country.