The Federal Executive Council (FEC) has announced significant legislative proposals aimed at integrating foreign residents into Nigeria’s tax framework.
On Wednesday, the council proposed amendments to the National Identity Management Commission (NIMC) Act of 2007, allowing foreigners living in the country to obtain a National Identification Number (NIN).
This initiative is part of a broader effort to ensure that expatriates and income-earning immigrants contribute to Nigeria’s tax system.
According to Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, “If the National Assembly passes that bill, it provides that everybody living in Nigeria, including foreigners, will now be registered and given an NIN.
Once you are doing some work here and earning income, you will be registered and given an NIN so that you can be taxed.”
The proposed legislation aims to expand the definition of “registrable persons” to include any individual deemed to be a tax resident in Nigeria, regardless of citizenship.
A new paragraph to Section 16 will stipulate, “Any person, whether or not he is a citizen of Nigeria, who is deemed to be resident or otherwise subject to tax in Nigeria under any legislation in force in Nigeria.”
In addition to the NIN amendments, the FEC has also introduced an Economy Stabilisation Bill, which will facilitate the taxation of foreign residents.
This comprehensive approach seeks to create a streamlined tax identity for all individuals earning an income in Nigeria, thereby enhancing revenue collection.
Onanuga emphasized the importance of this legislative shift: “Your NIN will give you your tax identity, and you can also be taxed and come under our tax structure. The law that set up the NIMC initially precludes foreigners from being registered.”
Furthermore, a third bill is set to amend the Nigerian Maritime Administration and Safety Agency (NIMASA) Act of 2007, allowing payments of fees and charges in Naira rather than foreign currencies. Onanuga noted that this change aims to support the national currency, stating, “The government is now saying, ‘pay in Naira. Everything doesn’t have to be in dollars.’”
These proposed amendments reflect the government’s commitment to modernizing tax regulations and enhancing the ease of doing business in Nigeria, ultimately aiming to create a more inclusive economic environment for both citizens and foreign residents.
