From January 2026, Nigeria’s new tax legal guidelines would require distant staff and freelancers to pay private revenue tax, identical to conventional workers. The tax charge will likely be capped at 25%.
Throughout a media briefing on Friday, Taiwo Oyedele, chairman of the Presidential Fiscal Coverage and Tax Reforms Committee, defined how the federal government plans to observe and acquire taxes from freelancers and digital creators.
“You’re presupposed to report your self, calculate your tax, and pay in case your revenue is above the edge,” Oyedele stated.
Nigeria signed new tax reforms into legislation in June 2025 as a part of its renewed effort to lift extra income. The nation goals to elevate its tax-to-GDP ratio to 18% by 2027, from lower than 10% at this time. Freelancers and influencers are an enormous a part of that plan.
Underneath the brand new legislation, self-employed people should self-declare their annual revenue. Failure to take action attracts penalties starting from ₦50,000 ($34.11) for minor offences to ₦1 million ($682.28) or three years in jail for extra severe violations.
The tax authority is just not stopping at these measures. In line with Oyedele, when freelancers or influencers fail to self-report, the tax authority will depend on a system validation course of to uncover unreported revenue.
“If freelancers don’t self-report, there’s a system validation that has been created that items data collectively, together with data that’s out there internationally,” he stated. “In actual fact, two weeks in the past, Nigeria bought approval for a world tax code that aligns us with the remainder of the world.”
Nigeria additionally now has data change agreements with over 100 nations, permitting it to trace offshore revenue. The federal government additionally plans to collaborate with international platforms like Google and Meta to determine funds made to Nigerians.
“We have already got details about what many Nigerians are doing overseas,” Oyedele stated. “For those who earn cash on-line, the variety of platforms paying you isn’t many—Google, Fb, and some extra. We will go to them for revenue stories, identical to they already acquire VAT for us in Nigeria.”
TechCabal reported in mid-September that Nigeria plans to develop tax and customs revenues to at the very least ₦17.85 trillion ($12.18 billion) in 2026, with expertise taking part in a key position.
Since 2021, the federal government has relied on platforms like TaxPro Max, to allow taxpayers to register, file, pay, and obtain tax clearance certificates on-line.
“Leveraging expertise, such because the automated tax administration system (TaxPro Max and E-services) to additional simplify tax processes, drive voluntary tax compliance, enhance income assortment, and create a tax surroundings that’s conducive for taxpayers to fulfil their tax obligations,” the federal government defined in a coverage paper.
To additional implement compliance, the FIRS plans to hyperlink its database with different businesses, together with the Nigeria Inter-Financial institution Settlement System (NIBSS), Nigeria Customs Service (NCS), Nigerian Communications Fee (NCC), and Company Affairs Fee (CAC), permitting for real-time, third-party intelligence gathering.
Be aware: change charge used: ₦1,465.68/$
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