The Federal Government has entered into agreements with more than 100 countries to collect data on Nigerians working remotely, in a bid to ensure tax compliance, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has disclosed.
Oyedele made the revelation during a webinar hosted on Wednesday by the National Orientation Agency, under the theme “Simplifying Nigeria’s Tax System”.
He used the occasion to address growing concerns around the taxation of income earned online — particularly by remote workers and digital freelancers.
According to Oyedele, every Nigerian resident who earns income from foreign companies or online platforms is obligated to declare that income, regardless of the employer’s location.
He said: “Whether you earn your money from Google or … XYZ Limited in the Bahamas, you have to declare your income yourself. If you fail to do it, the system will then gather intelligence, which is when the money hits your bank account.”
In other words, once foreign-sourced funds enter the bank, tax authorities may detect them through intelligence-gathering mechanisms.
Oyedele stated that Nigeria already monitors inflows of foreign currency into local bank accounts and is now expanding its reach via the Common Reporting Standard (CRS) — a global tax transparency framework.
Through this mechanism, Nigeria receives data on Nigerians holding assets abroad, including cash or property in jurisdictions such as Dubai, the United States, Canada, and the UK.
“We see this money coming to your Dollar Bank account. Nigeria has signed an agreement with over 100 countries under what is called the Common Reporting Standards,” he said.
“They are already sending us data about Nigerians who have money abroad, property abroad, whether it’s Dubai to the US to Canada to the UK. We have all that information already.”
Oyedele warned that non-compliance could lead to government action: “If it’s about data, the government can get the data. The primary obligation is to do the right thing yourself. If you fail to do it, the government will then come back to you and say, ‘We know this about you, you haven’t been honest, here’s your presumptive assessment.’ And at that point, you have to deal with it.”
He described how the government began engaging major global technology companies several years ago to address what he saw as unfair tax advantages.
According to Oyedele, traditional businesses in Nigeria are required to pay Value-Added Tax (VAT) on sales, whereas some online platforms are exempt because they operate from abroad.
“If you are doing your business, brick and mortar, pop and mom shop, and you sell a phone and you charge VAT, why should the person that is selling it online not charge VAT?” he said. “We went to these guys and said the services you render is liable to VAT. You are getting an undue advantage by doing it from abroad.”
Oyedele acknowledged that inconsistencies exist in the recently signed tax legislation, particularly between turnover thresholds in different laws.
He pointed to a discrepancy between two statutes: Section 147 of the Nigerian Tax Administration Act specifies a turnover threshold of ₦100 million, whereas Section 202 of the Nigeria Tax Act cites ₦50 million.
He attributed the discrepancy to an error that occurred during the gazetting process (the official publication).
The committee, after attempting to correct it for three months, decided to proceed with implementation while preparing amendments for next year.
“The minimum threshold for exemption is 100 million. That’s what you’ll find when the regulations are out,” he confirmed.
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