FG’s New Tax Laws: How Nigeria Plans to Track Remote Workers and Foreign Assets

Nigeria’s ambitious new tax framework, set to take effect in January 2026, is generating intense debate over the balance between revenue collection and citizen data privacy. While the reforms are designed to increase government revenue and broaden the tax base, concerns are mounting about the scope of digital surveillance proposed for tracking the income of remote workers and Nigerians with foreign assets.

The overhaul, signed into law on June 26, 2025, comprises four key legislations: the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025. Collectively, these laws aim to modernize Nigeria’s tax system, but the methods for data collection have raised privacy concerns among professionals and advocates.

Expanded Government Access to Global Financial Data

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, highlighted that Nigeria already receives extensive financial information from foreign jurisdictions through the Common Reporting Standards (CRS). Over 100 partner countries transmit data on the foreign accounts and assets of Nigerian residents.

According to Oyedele, this cross-border data visibility is central to the government’s plan to curb tax evasion. Nigerians who fail to report their income voluntarily may face presumptive assessments based on existing government-held data.

Legal and Ethical Concerns

Privacy experts warn that indiscriminate data collection could infringe on citizens’ rights. Abuja-based lawyer Ayomide Ahmed explained that while basic identifiers like Bank Verification Numbers (BVN) and National Identification Numbers (NIN) are legally accessible, sensitive personal data—including income histories, foreign assets, and location information—requires explicit consent.

Ahmed emphasized that the scale of the government’s ambitions makes direct requests to global companies impractical. He advocates for a coordinated, compliance-driven system that respects Nigeria’s data privacy standards.

“There is ordinary personal data and sensitive personal data. Any collection of sensitive information without consent could constitute a breach of ethical and legal standards,” Ahmed said.

Diaspora Concerns

The reforms are also sparking questions among Nigerians living abroad. Wale Ameen, a UK-based tech entrepreneur, expressed concerns over potential location tracking and GPS monitoring. He noted the need for clear definitions regarding which remote workers—domestic or diaspora—would be affected.

Ameen also questioned the practical benefits of taxation without transparent reporting of public spending:

“Even if taxes are collected, Nigerians need to see where the money is going—healthcare, infrastructure, or essential services. Without this transparency, the system feels unjust.”

Barrister Tola, a U.S.-based Nigerian lawyer, underscored the importance of communication. He acknowledged the government’s authority to enforce tax laws but stressed that public trust depends on clear guidance and transparency.

Economists Call for Transparency

Economist Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), noted that taxing global income is a standard practice internationally. However, he warned that many Nigerian households already shoulder private costs for services the state should provide, including education, healthcare, transportation, and agricultural support.

“Without clear fiscal disclosure and improved public service delivery, efforts to widen tax collection—including tracking income abroad—will face resistance,” Yusuf stated.

What Nigerians Abroad Should Know

Oyedele clarified that Nigerians living outside the country are not required to obtain a Tax Identification Number (TIN) or file Nigerian tax returns unless they earn income from Nigerian sources, such as local employment or business operations.