The reforms, aimed at boosting revenue and expanding the tax net, have provoked particular concern over the government’s proposed tracking of income for remote workers and Nigerians with foreign assets.
Signed into law on June 26, 2025, the overhaul spans four key legislations: the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025. Collectively, these laws seek to modernise Nigeria’s tax system, but their approach to digital data collection has triggered privacy concerns.
Government’s expanded access to global financial data
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, explained that Nigeria already receives substantial financial data from over 100 partner countries through the Common Reporting Standards (CRS). This includes information on foreign accounts and assets of Nigerian residents.
Oyedele noted that increased visibility into cross-border financial flows is key to curbing tax evasion. Nigerians who fail to report income voluntarily may face presumptive assessments based on this data.
Privacy and ethical concerns
Lawyers and privacy experts warn that the collection of sensitive personal data could violate citizens’ rights if transparency and consent are not ensured.
Abuja-based lawyer Ayomide Ahmed explained, “While basic identifiers like BVN or NIN may be legally accessed, sensitive personal data such as income histories, foreign assets, and location-based information require explicit consent. Collecting such data without informing Nigerians is an ethical violation.”
Diaspora voices worry about tracking methods
Nigerian tech entrepreneur Wale Ameen, resident in the UK, expressed concern over the potential use of GPS tracking or intrusive digital surveillance for remote workers. He also questioned whether the rules would apply only to Nigerians working abroad for foreign companies or those in Nigeria working remotely for foreign employers.
Ameen added that the bigger issue is public trust in how tax revenues are spent. “In other countries, paying taxes comes with transparency in spending on healthcare, infrastructure, and social services. In Nigeria, citizens rarely see these results,” he said.
Economists call for transparency
Economist Dr. Muda Yusuf stressed that while taxing global income is internationally accepted, Nigeria’s citizens already spend privately on services the state should provide. Without clear reporting and accountability, expanding tax collection risks resistance.
Clarification for Nigerians abroad
Oyedele confirmed that Nigerians living abroad are not required to obtain a Tax Identification Number (TIN) or file annual tax returns in Nigeria unless they earn income from Nigerian sources.
As Nigeria prepares to implement these reforms, experts insist that balancing revenue collection with ethical, transparent data use will be crucial to public acceptance.
