FG to Tax Foreigners Living, Working in Nigeria!

 The Federal Government of Nigeria has proposed a new amendment to the National Identity Management Commission Act, which would allow foreigners living in the country to obtain a National Identification Number (NIN) . This move is aimed at expanding the scope of registrable persons to include foreign individuals with a taxable presence or source of income in Nigeria.

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According to the Special Adviser to the President on Information and Strategy, Bayo Onanuga, this amendment would enable the government to tax foreigners living and working in Nigeria . The proposed Economy Stabilisation Bill would pave the way for this taxation, ensuring that foreigners contribute to the country's tax revenue.

The Federal Executive Council (FEC) has proposed two significant legislation changes that will impact foreigners living and working in Nigeria. The Economy Stabilisation Bill and the amendment to the National Identity Management Commission Act No. 23, 2007, aim to expand the scope of registrable persons to include foreign individuals with a taxable presence or source of income in Nigeria .

This means that foreigners living and working in Nigeria will now be required to register for a National Identification Number (NIN), which will enable the government to tax them. The Special Adviser to the President on Information and Strategy, Bayo Onanuga, explained that anyone earning income in Nigeria, including foreigners, will be registered and given an NIN to facilitate taxation .

“Once you are doing some work here and earning income, you will be registered and given an NIN so that you can be taxed.

“Your NIN will give you your tax identity, and you can also be taxed and come under our tax structure. The law that set up the NIMC initially precludes foreigners from being registered.”

The Nigerian government is proposing a significant change to its tax laws. A new bill, if passed, will require expatriates and income-earning immigrants to pay taxes, according to Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga . This means anyone living and working in Nigeria, regardless of citizenship, will be taxed if they earn income in the country.

The proposed amendment to Section 16 of the National Identity Management Commission Act No. 23, 2007, reads: "Any person, whether or not he is a citizen of Nigeria, who is deemed to be resident or otherwise subject to tax in Nigeria under any legislation in force in Nigeria" . This change aims to expand the scope of registrable persons to include foreign individuals with a taxable presence or source of income in Nigeria.

Key Implications:

- Taxation of Foreigners: Expatriates and income-earning immigrants will be taxed on their income earned in Nigeria.

- National Identification Number (NIN): Foreigners will be required to register for a NIN to facilitate tax administration.

- Economy Stabilisation Bill: The proposed bill aims to stabilize the economy and improve revenue generation.

This development is expected to have significant implications for foreign individuals and businesses operating in Nigeria.