In a significant clarification that brings relief to Nigerians living overseas, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has stated that Nigerians in the diaspora are not required to obtain a Tax Identification Number (TIN), also known as a Tax ID, unless they earn income from Nigerian sources.
His remarks come amid widespread confusion over how the newly enacted tax laws apply to citizens living abroad, particularly with regard to banking, remittances, remote work, pensions, and investment income. Below is a detailed breakdown of what he said, what it means, and how Nigerians overseas should respond.
What Was Announced
Oyedele addressed a number of key concerns in a question-and-answer session, issued to clarify the impact of recent tax-reform legislation on Nigerians living abroad. Key points include:
- A Tax ID is not required for Nigerians abroad who do not earn employment or business income from Nigeria. “A TIN is not required, and there is no requirement to file tax returns unless you earn employment or business income from Nigeria,” he stated.
- Non-residents with no Nigerian-source income are exempt from tax obligations under the new regime.
- For banking or investment purposes in Nigeria, Nigerians abroad can still obtain a Tax ID — but the requirement applies only when there is a relevant taxable connection (such as business or earning within Nigeria).
- Income earned abroad (and subsequently remitted) is not taxable in Nigeria, provided it does not arise from Nigerian work, business, or source. “Only income that arises in Nigeria is taxable for non-residents,” Oyedele clarified.
- Personal transfers, such as remittances to family or gifts, are not treated as taxable income under the new laws.
- Tax residency (and liability) is determined by a “183-day rule” (i.e., number of days present in Nigeria). Non-residents are taxed only on income derived from Nigeria.
Why This Clarification Was Necessary
This announcement addresses major points of confusion:
- The recent tax reform laws, including the Nigeria Tax Administration Act (NTAA) 2025 and related legislation, introduced changes that many Nigerians abroad feared might subject them to global Nigerian tax obligations.
- Media reports and social-media discussions created the impression that all citizens abroad must now register for Tax IDs and file Nigerian tax returns — even when they had no Nigerian-source income.
- The clarification serves to reassure diaspora Nigerians that unless they generate taxable income in Nigeria, they are not affected by Nigerian tax obligations.
- It also reinforces that the “Tax ID” (which replaces the older TIN regime) is part of a broader tax-administration reform rather than a new tax-levying measure targeting expatriates.
What It Does Mean
Although the clarification is favourable for Nigerians abroad, there are still important implications:
- If you are a Nigerian abroad and you do earn income from Nigeria — whether through business, employment, investment returns, rental income, or dividends — you will likely need a Tax ID and must comply with Nigerian filing obligations.
- If you open a business account in Nigeria, register for certain financial services, or engage in taxable transactions in Nigeria, a Tax ID may be required.
- The enforcement and compliance timeline for these reforms is being implemented in phases, with deadlines for registration, Tax ID issuance, and alignment of NIN or CAC numbers for tax purposes.
- The distinction between being a “resident taxpayer” (liable on worldwide income) and a “non-resident taxpayer” (liable only on Nigerian-source income) remains critical. Nigerians abroad must assess if their status falls under the non-resident category.
What It Does Not Mean
It is equally important to highlight what the clarification does not do:
- It does not provide blanket exemption for all Nigerians abroad — only those who do not earn Nigerian-source income or engage in taxable activities inside Nigeria.
- It does not mean that the Tax ID requirement is abolished; instead, it clarifies that the obligation depends on taxable status.
- It does not remove the need for vigilance: diaspora Nigerians who might have income from Nigeria (even remotely) must assess whether they qualify as taxable persons under the law.
Practical Advice for Nigerians in the Diaspora
If you are a Nigerian living abroad, here are useful steps to take in light of this clarification:
- Assess your income-source basis
- Do you receive salary, business profits, rental income, dividends, or investment returns from Nigeria?
- If yes → you may be a taxable person in Nigeria and should consider Tax ID registration and filing requirements.
- If no (income entirely foreign-sourced) → you likely fall under the non-resident category and, according to Oyedele, are not required to obtain a Tax ID or file returns in Nigeria.
- Check your residency status
- The “183-day rule” is cited for determining Nigerian tax residency: time spent physically in Nigeria helps determine whether you are a resident taxpayer (with worldwide income liability) or non-resident (Nigerian-source only).
- Keep records of travel, time spent in Nigeria, residence abroad, and the nature of your activities.
- Keep documentation and records
- Maintain clear records of where your income is earned, source of income, contracts, bank statements abroad, remittances, and local ties.
- For example, remote work for a foreign employer done outside Nigeria may not trigger Nigerian tax liability — Oyedele noted remote-worker income is taxed based on the rules of the country of residence or where the work is done, not merely where payment is made.
- Monitor your Nigerian engagements
- If you open a Nigerian bank account, invest in Nigeria, conduct business, or rent property in Nigeria, you may need to register for a Tax ID.
- For investment or banking purposes, there is a simplified Tax ID process: Nigerians abroad can obtain a Tax ID using their National Identification Number (NIN) if required.
- Stay informed about deadlines
- The tax-reform laws set deadlines for registration, tax-identification alignment, and risk of sanctions for non-compliance from certain dates (for example, January 1, 2026, is cited for Tax ID mandates for “taxable persons”).
- Although you may not be required to obtain a Tax ID now, if your situation changes (you earn Nigerian-source income), you should act before deadlines.
- Consult a tax professional if in doubt
- Because your status may depend on individual facts (foreign-source vs Nigerian-source income; resident vs non-resident; nature of engagements in Nigeria), getting professional advice is wise.
Why This Matters for Nigeria and the Diaspora
- For Nigeria, this policy clarifies the government’s intention: to capture revenue from those connected to the Nigerian economy without inadvertently alienating diaspora Nigerians who have no Nigerian-source taxable income.
- For Nigerians abroad, it offers reassurance that they are not automatically swept into a broad global tax net by virtue of citizenship — rather, the tax law focuses on where income arises.
- It signals a shift toward a more transparent and equitable tax system under the reform laws (such as the NTAA) and moves away from uncertainty that can discourage investment, remittances, or financial engagement by the diaspora.
- The diaspora is an important constituency for Nigeria: remittances, investment, and contribution to national development are all enhanced when the policy environment is clear and fair. This clarification supports that engagement.
Final Word
The statement by Taiwo Oyedele that Nigerians abroad are not obligated to obtain a Tax Identification Number — unless they earn income from Nigerian sources — is a welcome clarification that brings certainty to a previously grey area. It underscores that:
- The tax law focuses on taxable persons (those earning from Nigeria) rather than all citizens abroad.
- Non-residents with no Nigerian-source income do not need to obtain a Tax ID or file returns in Nigeria.
- Engagements such as banking, investment, or income-earning in Nigeria still trigger obligations under reform laws.
- The onus remains on individuals to evaluate their income sources, residency status, and Nigerian-related business or investment involvement.
For Nigerians living abroad, the key takeaway is: you are not automatically required to register for a Tax ID simply because you hold Nigerian citizenship or plan to open a bank or investment account in Nigeria — unless your situation crosses into the zone of Nigerian-income generation or business activity. If you are uncertain about your specific circumstances, it remains prudent to seek professional tax advice so you remain compliant while optimising your position.
