Remote Income, Real Naira: Inside Nigeria’s 13.5% Tax Surge
The Big Picture
President Bola Ahmed Tinubu says Nigeria’s tax-to-GDP ratio has inched up to 13.5%,its highest point in a decade,thanks to a cocktail of new tax laws (Nigerian Tax Laws 2025 - Comprehensive Tax Reform Legislation) set to kick in by January 2026, Daily Post reports. Abuja’s goal? Broaden the base, not pile more weight on the same weary taxpayers.
The Details
Four fresh tax bills signed in June promise rate stability but wider reach, and officials are already eyeing a bigger slice of the digital pie. Under the upcoming rules, income earned abroad by Nigerians, including the booming ranks of remote workers and social-media influencers, will be taxable at home, the Finance Ministry told Legit.ng. Individuals must self-declare, but the government says it has the tech to sniff out hidden earnings.
Why It Matters / What They’re Saying
The reaction was swift. Tax pros note the reforms could unlock billions without raising rates, though compliance will be the make-or-break factor. The ministry insists the plan “isn’t a money grab” but a fairness play that will, in Tinubu’s words, “provide relief for low-income earners.” Still, enforcement on cross-border income is notoriously tricky, expect plenty of paperwork (and maybe a few TikTok rants) as influencers learn the ropes.
Around the Tax World
• Zero-VAT Zones Take Shape: Food, education, transport, and agriculture will enjoy full VAT exemptions under the reform package, FIRS chairman Zacch Adedeji told Consumer Connect NG. The carve-outs aim to keep staple prices in check and spur investment.
• Corporate Catch-Up: Cadbury Nigeria and eight peers disclosed a combined ₦236.2 billion in deferred tax liabilities in their mid-year reports (Punch). Some firms saw the backlog swell, while others trimmed liabilities through “improved tax efficiency.”
• Stamp of Disapproval: The Manufacturers Association of Nigeria warns that proposed tax stamps on excisable goods will jack up compliance costs and “hurt small industries,” according to MSN.
• Lagos Shows the Way: With Nigeria’s fattest internally generated revenue, Lagos State illustrates how disciplined tax collection can bankroll roads, rail, and hospitals, The Guardian notes.
Tax Stat of the Day
₦236.2 billion , the deferred tax tab nine listed companies are still carrying, a reminder that bookkeeping and bank-booking aren’t the same thing (Punch).
Looking Ahead
All eyes are now on January 2026, when the new laws,and that cross-border income dragnet,go live. For more insights on the evolving tax landscape, refer to our Introduction To Nigerian Tax Laws.
Prepared by MyTax - mytax.com.ng