As Nigeria’s new tax regime takes effect, experts are calling on Nigerians living abroad to pay close attention to emerging policies on residency status, income declaration, and tax credits.
The Federal Inland Revenue Service (FIRS) recently introduced reforms aimed at improving compliance and closing loopholes in cross-border taxation. Under the new framework, residency status will play a central role in determining who qualifies as a Nigerian taxpayer, even among citizens living overseas.
Tax analysts explain that Nigerians who spend 183 days or more in the country within a 12-month period could be classified as tax residents making them liable to pay taxes on global income, depending on bilateral agreements with their host countries.
Equally important are new provisions on foreign tax credits, which allow diaspora Nigerians to offset taxes already paid abroad against potential liabilities in Nigeria. This aims to prevent double taxation and encourage compliance with the nation’s evolving tax system.
However, experts warn that many Nigerians abroad remain unaware of these details. “Ignorance could lead to unnecessary penalties,” said a Lagos-based tax consultant, urging diaspora citizens to seek professional guidance and file declarations accurately.
The government has defended the reforms as part of a broader effort to expand Nigeria’s non-oil revenue base, strengthen fiscal transparency, and align the country with international tax standards.
For diaspora Nigerians who maintain economic or family ties at home, understanding the new residency rules and available credits could be the key to avoiding legal risks and maximizing financial efficiency in the new tax era.
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