Nigerians Working Remotely for Foreign Companies Must Pay Tax Locally — Taiwo Oyedele

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that Nigerians earning income from remote jobs with foreign companies are legally required to declare such earnings and pay tax in Nigeria.

Oyedele explained that under Nigeria’s tax laws, residents are taxed on their worldwide income, regardless of whether it is earned locally or abroad. This means remote workers, freelancers, and digital professionals servicing international clients are not exempt from tax obligations simply because their employers are based overseas.

He noted that the global rise of remote work has created new challenges for tax authorities, but emphasized that Nigeria’s system already has provisions to capture such income. “If you live in Nigeria, you are required to file your taxes here, even if your employer is abroad,” Oyedele stressed, warning that non-compliance could attract penalties.

The clarification comes as more Nigerians take advantage of remote opportunities with companies in the US, UK, Canada, and other countries, especially in the tech and creative sectors. Recent data from the National Bureau of Statistics shows a steady rise in digital exports and cross-border freelancing, with remittances and remote contracts forming a growing part of household income.

However, tax experts caution that the policy must be balanced with clear guidelines to avoid discouraging young professionals. Many argue that without reforms to simplify Nigeria’s tax system, compliance levels may remain low, with workers either unaware of the requirement or reluctant due to complex filing processes.

Oyedele, who has been pushing for comprehensive tax reforms, assured that the government is working to harmonize taxes, reduce complexity, and make compliance easier for both individuals and businesses.

This development adds a new dimension to Nigeria’s ongoing debates on taxation, digital economy growth, and the need to broaden the country’s revenue base without stifling innovation or discouraging global opportunities for its youth.