Starting January 2026, Nigeria will implement new tax regulations mandating that remote workers and freelancers pay personal income tax similarly to salaried employees, with a maximum tax rate set at 25%.
At a recent press conference, Taiwo Oyedele, who leads the Presidential Fiscal Policy and Tax Reforms Committee, outlined the government’s strategy for tracking and collecting taxes from freelancers and digital content creators.
“Individuals earning above the taxable threshold are expected to self-assess, declare their income, and remit the appropriate tax,” Oyedele emphasized.
These reforms, enacted into law in June 2025, are part of Nigeria’s broader initiative to boost tax revenue. The government aims to increase the tax-to-GDP ratio from under 10% currently to 18% by 2027, with freelancers and social media influencers playing a significant role in this revenue expansion.
Under the updated legislation, self-employed persons must voluntarily disclose their yearly earnings. Non-compliance can result in fines ranging from ₦50,000 (approximately $34) for minor infractions to ₦1 million (around $682) or imprisonment for up to three years for severe breaches.
Beyond self-reporting, the tax authorities have developed a verification system to detect undeclared income among freelancers and influencers.
“If freelancers fail to report, our system cross-references data, including international sources,” Oyedele explained. “Recently, Nigeria adopted an international tax code that harmonizes our practices with global standards.”
Additionally, Nigeria has established information-sharing agreements with over 100 countries, enabling the government to monitor offshore earnings. Plans are also underway to partner with major global platforms such as Google and Meta to track payments made to Nigerian users.
“We already possess data on many Nigerians’ foreign income streams,” Oyedele noted. “Since the number of platforms paying online creators is limited-primarily Google, Facebook, and a few others-we can request income reports from them, similar to how they currently handle VAT collection in Nigeria.”
According to a mid-September report by TechCabal, Nigeria targets tax and customs revenue of at least ₦17.85 trillion ($12.18 billion) in 2026, with the technology sector expected to be a major contributor.
Since 2021, the government has utilized digital platforms like TaxPro Max to facilitate taxpayer registration, filing, payment, and issuance of tax clearance certificates online.
“By leveraging automated tax administration tools such as TaxPro Max and other e-services, we aim to streamline tax processes, encourage voluntary compliance, increase revenue, and foster a taxpayer-friendly environment,” the government stated in a recent policy document.
To enhance enforcement, the Federal Inland Revenue Service (FIRS) plans to integrate its database with other agencies, including the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Customs Service (NCS), Nigerian Communications Commission (NCC), and Corporate Affairs Commission (CAC). This integration will enable real-time intelligence gathering from third-party sources.
Note: Exchange rate used is ₦1,465.68 to $1.
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