FG Moves to Tax Students, Youths, Remote Workers Earning Dollars, Partners US, UK, Canada

The Federal Government has expanded its global tax surveillance network to include Nigerian students, youths, and remote workers earning in foreign currencies, following new international agreements aimed at improving tax compliance and transparency.

According to the Presidential Committee on Fiscal Policy and Tax Reforms, Nigeria has entered into information-sharing partnerships with more than 100 countries to monitor the income of citizens who work remotely for international organisations or earn through online platforms. The committee’s chairman, Taiwo Oyedele, disclosed this during a webinar hosted by the National Orientation Agency on simplifying the country’s tax system.

Oyedele explained that under the new arrangement, all Nigerians—including freelancers, online creators, students working part-time for foreign companies, and youths offering digital services—must declare their foreign earnings. This includes payments from major global tech firms such as Google, as well as income from smaller foreign employers.

“Everyone earning from abroad must declare their income. If you fail to do so, the system will track the money once it enters your bank account,” he said, stressing that self-declaration remains the legal responsibility of every taxpayer.

He further noted that Nigeria is leveraging the Common Reporting Standards to access financial data from partner countries including the United States, United Kingdom, Canada, and the United Arab Emirates. These agreements allow authorities to detect undeclared income, foreign deposits, and even properties linked to Nigerian residents.

The tracking system combines self-reporting with automatic intelligence gathering, enabling authorities to issue presumptive tax assessments when foreign earnings are not declared. Oyedele said the move is crucial to ensuring transparency in international transactions involving Nigerians.

He added that the committee is also collaborating with global tech companies to rectify long-standing issues around Value Added Tax (VAT) collection from digital services. Physical stores had previously shouldered VAT responsibilities, while international online platforms operated at an advantage.

“We spoke with tech firms to understand their concerns and reached agreements that now allow Nigeria to collect billions in taxes from digital platforms,” he said.

However, Oyedele acknowledged discrepancies in the recently passed tax laws, particularly the turnover thresholds. Section 147 of the Nigerian Tax Administration Act places the minimum at ₦100 million, while Section 202 of the Tax Act sets it at ₦50 million—an inconsistency that emerged during gazetting. He assured that amendments are being prepared for the coming year.

New Capital Gains Tax rules are expected to take effect from January 1, 2026. Investments made before that date will not be taxed, as the updated law resets the cost basis and introduces a transitional clause. Only gains accrued after 2026 will be subject to taxation.