Federal Government Introduces NIN And Tax Measures For Foreigners Residing In Nigeria

Federal Government Introduces NIN And Tax Measures For Foreigners Residing In Nigeria

The Federal Executive Council (FEC) is proposing an amendment to the National Identity Management Commission Act No. 23 of 2007, which would allow foreigners residing in Nigeria to be issued a National Identification Number (NIN). Additionally, the FEC has introduced the Economy Stabilization Bill to facilitate the taxation of foreigners living and working in Nigeria……CONTINUE READING

These proposed legislations aim to “expand the scope of registrable persons to include foreign individuals with a taxable presence or source of income in Nigeria,” as well as to mandate the use of the National Identification Number for tax-related transactions and other relevant matters. A new paragraph will be added to Section 16, stating, “Any person, whether or not a citizen of Nigeria, who is deemed to be a resident or subject to tax in Nigeria under any legislation in force in Nigeria.”

If approved, the new bill would impose taxes on expatriates and income-earning immigrants. Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, shared this information during a briefing with State House Correspondents at the Aso Rock Villa in Abuja on Wednesday.

Onanuga elaborated, “If the National Assembly passes this bill, it will require everyone living in Nigeria, including foreigners, to be registered and issued an NIN. If you work here and earn income, you will be registered and assigned an NIN for tax purposes.”

He added that the NIN would serve as a tax identifier, allowing foreigners to be integrated into the Nigerian tax system, as the original law establishing the NIMC had excluded them from registration.

In addition, Onanuga announced a third bill aimed at amending the Nigerian Maritime Administration and Safety Agency Act No. 17 of 2007. This amendment seeks to enable the payment of fees and charges in Naira to enhance the ease of doing business. A new subsection (2) will be added to Section 15, allowing “all fees, charges, levies, fines, and other monies accruing and payable to the Agency under this Act to be paid in Naira at the applicable official exchange rate.”

Onanuga noted that previously, these agencies charged fees in dollars. The current government emphasizes the use of the national currency, stating, “The government is now saying, ‘Pay in Naira. Everything doesn’t have to be in dollars.’”