Nigeria Partners with Over 100 Countries to Track Remote Workers’ Income – Oyedele

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that Nigeria has partnered with over 100 countries to track the income of remote workers and online income earners, aiming to enforce tax remittance.

Speaking at a webinar hosted by the National Orientation Agency on Wednesday, themed ‘Simplifying Nigeria’s Tax System,’ Oyedele discussed the challenges of taxation in the digital economy, especially for remote workers.

Oyedele emphasized that remote workers in Nigeria, regardless of where they work for or the country they are based in, are obligated to declare their income. “It doesn’t matter whether you earn your income from Google or XYZ Limited in the Bahamas; you must declare it yourself. If you don’t, the system will gather intelligence when money hits your bank account,” he stated.

The government has made significant strides in tracking cross-border transactions, with agreements signed with over 100 countries under the Common Reporting Standards. This enables Nigeria to gather data on Nigerians with money and property abroad, whether in Dubai, the US, Canada, or the UK. “We see the money coming into your Dollar bank account, and we already have information on Nigerians with funds abroad,” Oyedele added.

Oyedele urged Nigerians to comply with the new tax regulations, advising that failure to do so would lead to presumptive assessments based on data gathered from various international sources. “Do the right thing yourself, or the government will come back to you with the data,” he said.

Engagement with Big Tech Companies

Oyedele also discussed Nigeria’s engagement with big tech companies over the past few years, particularly regarding the imposition of Value Added Tax (VAT) on digital services. He highlighted the disparity between VAT charges for traditional businesses and online platforms. “If a physical shop charges VAT on a phone sale, why shouldn’t an online seller be required to charge VAT as well?” he asked.

Through a collaborative approach, Nigeria reached agreements with tech companies, and today, the country is generating billions of dollars in VAT revenue from these digital giants.

Legislative Errors and Corrections

Addressing inconsistencies in the recently signed tax legislation, Oyedele acknowledged a discrepancy regarding turnover thresholds. The Nigerian Tax Administration Act (Section 147) specifies a N100 million threshold, while Section 202 of the Nigerian Tax Act sets it at N50 million. This error arose during the gazetting process after President Bola Tinubu signed the bills into law in June 2025. However, Oyedele reassured that the committee is working to correct the issue, with plans to amend the laws next year.

Capital Gains Tax (CGT) Reform

Oyedele also clarified the upcoming changes to Nigeria’s Capital Gains Tax (CGT). The new framework, which will take effect from January 1, 2026, will not retroactively tax gains made before 2026. The reform includes a grandfathering clause to preserve previous gains, with tax applying only to new profits generated after the reform’s implementation.