Nigeria is intensifying its efforts to regulate and tax income earned in the digital economy, as the Federal Government confirms it now receives financial and asset data on Nigerians from more than 100 countries. The update, delivered by Taiwo Oyedele, Chair of the Presidential Committee on Fiscal Policy and Tax Reforms, signals a decisive shift in how the country intends to police cross-border earnings and remote work.
Oyedele spoke during a National Orientation Agency webinar on Nigeria’s evolving tax framework, explaining that the explosion of remote work, digital services, and online freelancing has created a large pool of untaxed income that the government can no longer overlook.
According to him, the law now places full responsibility on individuals earning money from abroad—whether from global tech companies, online marketplaces, or foreign employers—to declare their income voluntarily.
He noted that the government’s new compliance strategy relies less on guesswork and more on data. Nigerian authorities now receive information on financial accounts, investments, and property owned by citizens overseas, thanks to the country’s participation in the Common Reporting Standard (CRS)—a global agreement that facilitates automatic exchange of financial data.
“We are already seeing inflows into domiciliary accounts here at home,” Oyedele said. “But even if the money stays abroad, countries under the CRS framework send us matching information. That includes bank balances, property titles, and investment holdings.”
The message to digital workers, he stressed, is simple: transparency is now the safest route. Individuals who fail to file their taxes before the system identifies undeclared income may face presumptive assessments and penalties.
Tech Platforms and VAT Compliance
Oyedele also shed light on Nigeria’s earlier negotiations with major global tech companies. Several years ago, the government observed that brick-and-mortar Nigerian businesses charged and remitted Value Added Tax (VAT), while foreign digital platforms offering similar services were not doing the same.
Rather than pursue confrontation, the committee engaged the tech firms, ultimately reaching agreements that enabled Nigeria to collect VAT on digital services consumed within its borders—now a growing revenue stream.
Correcting Legislative Gaps
In a separate clarification, Oyedele addressed inconsistencies found in the newly signed tax legislation, particularly mismatched turnover thresholds for tax exemptions. A typographical error during gazetting introduced conflicting limits of ₦50 million and ₦100 million.
He confirmed that the correct exemption threshold remains ₦100 million, and that the committee will propose amendments next year while implementation proceeds.
Capital Gains Tax: No Retroactive Penalties
As concerns mounted about potential retroactive taxation under the forthcoming Capital Gains Tax reforms, Oyedele reassured Nigerians that investment gains made before January 1, 2026, will not be subject to the new rules. The updated CGT regime includes a cost-basis reset designed to prevent unfair taxation of historical gains.
A New Tax Era for the Digital Workforce
With global data-sharing now a reality and Nigeria modernizing its tax laws, remote workers and digital freelancers enter a new era of accountability. The government’s message is clear: compliance is becoming automated—and inevitable.
