From January 2026, Nigeria’s new tax laws will require remote workers and freelancers to pay personal income tax, just like traditional employees. The tax rate will be capped at 25%.
During a media briefing on Friday, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, explained how the government plans to monitor and collect taxes from freelancers and digital creators.
“You are supposed to report yourself, calculate your tax, and pay if your income is above the threshold,” Oyedele said.
Nigeria signed new tax reforms into law in June 2025 as part of its renewed effort to raise more revenue. The country aims to lift its tax-to-GDP ratio to 18% by 2027, from less than 10% today. Freelancers and influencers are a big part of that plan.
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Under the new law, self-employed individuals must self-declare their annual income. Failure to do so attracts penalties ranging from ₦50,000 ($34.11) for minor offences to ₦1 million ($682.28) or three years in prison for more serious violations.
The tax authority is not stopping at these measures. According to Oyedele, when freelancers or influencers fail to self-report, the tax authority will rely on a system validation process to uncover unreported income.
“If freelancers do not self-report, there is a system validation that has been created that pieces information together, including information that is available internationally,” he said. “In fact, two weeks ago, Nigeria got approval for an international tax code that aligns us with the rest of the world.”
Nigeria also now has information exchange agreements with over 100 countries, allowing it to track offshore income. The government also plans to collaborate with global platforms like Google and Meta to identify payments made to Nigerians.
“We already have information about what many Nigerians are doing abroad,” Oyedele said. “If you earn money online, the number of platforms paying you isn’t many—Google, Facebook, and a few more. We can go to them for income reports, just like they already collect VAT for us in Nigeria.”
TechCabal reported in mid-September that Nigeria plans to grow tax and customs revenues to at least ₦17.85 trillion ($12.18 billion) in 2026, with technology playing a key role.
Since 2021, the government has relied on platforms like TaxPro Max, to enable taxpayers to register, file, pay, and download tax clearance certificates online.
“Leveraging technology, such as the automated tax administration system (TaxPro Max and E-services) to further simplify tax processes, drive voluntary tax compliance, increase revenue collection, and create a tax environment that is conducive for taxpayers to fulfil their tax obligations,” the government explained in a policy paper.
To further enforce compliance, the FIRS plans to link its database with other agencies, including the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Customs Service (NCS), Nigerian Communications Commission (NCC), and Corporate Affairs Commission (CAC), allowing for real-time, third-party intelligence gathering.
Note: exchange rate used: ₦1,465.68/$
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