By Muhammad Sal
Beginning January 2026, Nigeria will require remote workers and freelancers earning from foreign companies to pay personal income tax on these earnings, with rates reaching up to 23%. This move forms part of the government’s efforts to widen the tax net, increase revenue, and align tax policy with the rapidly growing digital economy.
In June 2025, President Bola Tinubu signed landmark tax reforms into law that explicitly include remote workers and freelancers in Nigeria’s tax system. The reforms stipulate that residents of Nigeria must declare and pay taxes on income earned regardless of whether the money is brought into the country, effectively taxing global income for tax residents.
Remote workers earning foreign income will be subject to a progressive tax regime, with annual taxable income rates reaching a maximum of 25%, while many freelancers can expect to pay around 23% after allowable deductions.
Freelancers and remote employees working for foreign clients must self-assess and file annual tax returns since foreign employers typically do not withhold Nigerian taxes on their behalf.
Failure to comply with tax registration and filing requirements will incur increasing fines, starting at ₦50,000 ($33.59) for failure to register and ₦100,000 ($67.19) for failure to file in the first month, escalating with continued non-compliance. False declarations may lead to fines up to ₦1 million or three years imprisonment.
We’d love your thoughts on this article! Was the information relevant to you?
