Abuja, October 2, 2025 — The Federal Government has enacted a new tax law requiring diaspora Nigerians who spend more than 183 days in the country to pay taxes on their worldwide income.
The legislation also covers content creators, social media influencers, and Nigerians living abroad, in what officials describe as a move to expand the nation’s tax base and reduce dependence on oil revenue.
Tax Residency Rule
According to the new policy, any Nigerian who stays in the country for 183 days or more in a calendar year will be classified as a tax resident. This classification obliges them to declare and pay tax on all earnings, including salaries, investments, royalties, and digital income earned outside Nigeria.
Digital Economy in Focus
Content creators and online influencers are among those most affected by the measure. With thousands of Nigerians earning substantial income from platforms such as YouTube, TikTok, and Instagram, the government is seeking to capture untaxed revenue streams from the booming digital economy.
Government’s Position
Officials argue that the law is rooted in fairness and equity.
“Nigerians who benefit from our infrastructure and spend significant time here must also contribute to the system, regardless of where their income is generated,” a Finance Ministry spokesperson said.
Concerns and Pushback
The decision has triggered criticism from analysts and diaspora groups. Key concerns include:
- Double taxation: Without bilateral tax treaties, Nigerians abroad may face being taxed in both their country of residence and Nigeria.
- Investment deterrent: Some worry the law could discourage diaspora Nigerians from spending extended time or investing in the country.
- Compliance issues: Tracking global income across multiple jurisdictions may prove difficult for the tax authorities.
Tax experts have urged the Federal Inland Revenue Service (FIRS) to publish detailed implementation guidelines and clarify enforcement mechanisms.
Next Steps
The FIRS is expected to roll out compliance directives in the coming weeks. Penalties for non-compliance are likely to include fines, asset restrictions, or legal action.
Financial advisers are already encouraging Nigerians abroad and digital entrepreneurs to review their residency status and tax filings in light of the new rules.
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