Nigeria’s New Tax Laws Won’t Affect Diaspora Remittances or Foreign Income Says Oyedele

Nigerians in the diaspora have expressed growing concern over the country’s new tax reforms, fearing that the laws might extend to money transfers, dual citizenship, and income earned abroad.

However, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reassured that diaspora remittances and foreign-earned income will not be taxed under the new fiscal framework.

Speaking in an interview with Channels Television, Oyedele explained that personal transfers such as family remittances, gifts, and community contributions are not considered taxable income.

“Genuine personal transfers such as family remittances, gifts, or community savings contributions are not treated as taxable income,” he said. “Only income earned or deemed to be income, such as wages, business profits, or investment returns, is subject to tax.”

Addressing fears of double taxation, Oyedele stated that Nigerians working abroad will not be taxed twice, emphasizing that income earned abroad and brought into Nigeria by non-residents is exempt from taxation. He also noted that Nigeria maintains Double Taxation Agreements (DTAs) with several countries to safeguard citizens from being taxed on the same income twice.

He clarified that tax residency in Nigeria is determined by the 183-day rule, meaning only individuals who spend more than 183 days in Nigeria within a 12-month period are considered tax residents.

“Non-residents are taxed only on income derived from Nigeria, such as rent, dividends, or business profits,” Oyedele added. “Having dual citizenship does not affect anyone’s tax status.”

He also highlighted that government-backed investments such as bonds and Sukuk remain tax-exempt, while private investment earnings  including rental income and dividends attract a 10% withholding tax, which may drop to 7.5% for investors from countries with existing tax treaties like the UK, South Africa, and China.

Oyedele further clarified that pensions and stipends from abroad will not be taxed unless they are payments for work done within Nigeria. “Remote workers are taxed based on the country where they reside or earn the income, not where the payment originates,” he said.

On Tax Identification Numbers (TINs), he explained that Nigerians living abroad do not require a TIN or need to file annual tax returns unless they have income sourced from Nigeria.

“There’s no requirement to file tax returns unless you earn employment or business income from Nigeria,” he stated.

To aid compliance for those who fall under taxable categories, Oyedele mentioned that simplified digital platforms like TaxProMax have been introduced for ease of use.

His remarks come amid widespread confusion on social media, where many Nigerians abroad feared the government might begin taxing family remittances as part of its fiscal reform efforts.