Nigeria Partners with 100+ Countries to Track Remote Workers

In a significant move to strengthen tax enforcement and expand revenue collection, Nigeria has entered into data-sharing agreements with over 100 countries to monitor the income of remote workers and citizens with undeclared assets abroad.

Global Data Exchange Framework

Speaking at a webinar hosted by the National Orientation Agency (NOA) themed “Simplifying Nigeria’s Tax System,” Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, revealed that Nigeria is leveraging the Common Reporting Standard (CRS)—an international framework developed by the Organisation for Economic Co-operation and Development (OECD) for automatic exchange of financial information.

Under the CRS framework, Nigeria has signed agreements that enable automatic information exchange with approximately 100 jurisdictions, including major economies such as the United States, United Kingdom, Canada, and the United Arab Emirates. The framework allows tax authorities to receive detailed financial data about their residents’ offshore accounts and assets.

“Whether you earn from Google or a company in the Bahamas, you must declare your income yourself. If you fail, the system will gather intelligence once the money hits your account,” Oyedele stated during the webinar.

Targeting the Digital Economy

The initiative specifically addresses the growing challenge of taxation in Nigeria’s expanding digital economy, particularly among remote workers earning income from foreign companies and online platforms. Nigerian authorities are now positioned to track financial flows that previously operated in a gray area of tax compliance.

“We see this money coming to your dollar account. Nigeria has signed an agreement with over 100 countries… They’re already sending us data about Nigerians with money and property abroad—from Dubai to the US, Canada, and the UK,” Oyedele explained, urging voluntary compliance before enforcement actions begin.

Success in Digital Tax Collection

Nigeria’s approach to taxing digital services has already yielded substantial results. The Finance Act of 2021 mandated that non-resident technology companies collect 7.5% Value Added Tax (VAT) on digital services provided to Nigerian customers, bringing global tech giants like Google, Meta, Netflix, and Amazon into Nigeria’s tax net.

According to Oyedele, Nigeria began engaging with these companies three to four years ago through collaborative rather than confrontational approaches. The strategy has proven remarkably successful: foreign digital companies remitted over ₦2.55 trillion (approximately $1.5 billion) in taxes during the first half of 2024 alone.

“If a local shop selling phones charges VAT, online platforms shouldn’t get a free pass. We engaged them collaboratively, and today Nigeria earns billions from digital taxes without confrontation,” Oyedele noted.

More recently, in September 2025, government officials disclosed that Nigeria had collected over ₦600 billion in VAT from international platforms such as Facebook, Amazon, and Netflix under Section 10 of the VAT Act.

Capital Gains Tax Clarity

Addressing concerns about the new Capital Gains Tax (CGT) framework scheduled to take effect on January 1, 2026, Oyedele provided important clarifications to calm investor anxiety. The reform includes a cost basis reset and grandfathering clause ensuring that only profits realized after 2026 will be subject to the new tax regime.

“For the purpose of CGT effective from January 1, 2026, the cost base for existing investments will be reset to the higher of the actual acquisition cost or the closing market price as of December 31, 2025,” Oyedele explained. “This ensures fairness and prevents the application of the new rule to gains accrued before the new law takes effect.”

For example, if an investor purchased shares at ₦5 that appreciated to ₦20 by December 31, 2025, the ₦20 value becomes the new cost basis. If those shares are sold in 2026 for ₦25, only the ₦5 gain realized after the reset date will be taxed—the ₦15 historical gain remains exempt.

Administrative Corrections

Oyedele also acknowledged minor errors in the recently gazetted tax legislation, specifically regarding turnover thresholds for tax exemptions. While some provisions referenced a ₦50 million threshold, he clarified that the correct exemption threshold is ₦100 million for small companies.

“The 50 that was there originally got into one of the laws during editing and typesetting,” he explained, adding that upcoming regulations would reflect the correct ₦100 million threshold. Small businesses with annual turnover of ₦100 million or less are exempt from income tax under the reform framework.

The Road Ahead

Oyedele’s message emphasized a preference for voluntary compliance over enforcement. “If you fail to do the right thing, the government will come back and say, ‘We know this about you; you haven’t been honest,’ and then issue a presumptive assessment,” he cautioned taxpayers.

The comprehensive tax reform initiative represents Nigeria’s commitment to modernizing its fiscal infrastructure, broadening the tax base, and aligning with international best practices. By leveraging technology and international cooperation, Nigerian authorities are positioning the country to capture revenue from previously untaxed or undertaxed economic activities, particularly in the rapidly growing digital economy.

For Nigerian citizens earning income from foreign sources or holding assets abroad, the message is clear: the era of undetected offshore income is ending. With data flowing from over 100 countries, tax authorities now have unprecedented visibility into cross-border financial activities, making voluntary compliance not just advisable but increasingly necessary.