Nigeria’s sweeping new tax framework, scheduled to take effect in January 2026, is triggering significant debate over how far government agencies should be allowed to go in collecting and analysing citizens’ personal financial information.
Although the reforms aim to boost revenue and expand the tax net, the most contentious issue emerging from public discourse is the extent of digital surveillance the government may deploy to track the income of remote workers and Nigerians with foreign assets.
The tax overhaul, signed into law on June 26, 2025, spans four major legislations: the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025.
Collectively, the new laws seek to modernize the country’s tax architecture, but the methods proposed for data collection are raising red flags among privacy advocates and remote‑work professionals.
Expanded Access to Global Financial Data
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, recently attempted to clarify public concerns by emphasizing that Nigeria already receives substantial financial information from foreign jurisdictions.
Through the OECD Common Reporting Standard (CRS), more than 100 partner countries transmit data on the foreign accounts and assets of Nigerian residents.
According to Oyedele, the increased visibility into cross‑border financial flows is central to the government’s goal of curbing tax evasion.
Nigerians who fail to voluntarily report their income may later face presumptive assessments based on data already in government custody.
However, privacy specialists argue that the approach could violate citizens’ rights if not handled with transparency.
Abuja‑based lawyer Ayomide Ahmed explained that collecting sensitive personal data without the subject’s knowledge risks crossing ethical and legal boundaries.
He noted that while identifiers such as the Bank Verification Number (BVN) or National Identification Number (NIN) may be legally accessed under existing laws, sensitive personal data—including income histories, foreign asset records, and location‑based information—typically requires explicit consent.
“There’s no how sensitive personal data is not going to fall under this category of data that they are collecting. So, if they must collect sensitive personal data, they know that they have to get consent,” Ahmed said.
Diaspora Concerns and Calls for Transparency
The reforms are also generating concern within the diaspora community. Nigerian tech entrepreneur Wale Ameen, CEO of Cush and a UK resident, said a lot still needs to be explained to the public about the data tracking.
He warned that if location tracking and GPS tools are deployed, “then there are issues… they violate a person’s privacy.”
Ameen also questioned whether the reforms target Nigerians based in Nigeria working for foreign companies, or Nigerians in the diaspora.
He stressed that beyond taxation, citizens want to see where revenue is spent: “Is it healthcare? Is it infrastructure? You see it abroad. But in Nigeria, the reverse is the case.”
U.S.‑based Nigerian lawyer Barrister Tola added that individuals should ordinarily be informed before their data is accessed. While acknowledging the government’s authority to enforce tax laws, he maintained that communication and clarity are essential to public trust.
Economist Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, noted that taxing global income is widely accepted internationally.
However, he cautioned that Nigerian households already shoulder significant private spending on services the state fails to provide—education, healthcare, transport, and agriculture among them.
“There has to be full fiscal disclosure as to how much they are earning from these taxes and what they are spending it on. That transparency is not there,” Yusuf said.
Oyedele had earlier clarified how the newly enacted tax reform laws would affect Nigerians living abroad, addressing concerns around Tax Identification Number (TIN) and residency rules.
In a Q&A, he explained that Nigerians abroad are not obligated to obtain a TIN or file annual tax returns in Nigeria unless they earn income from Nigerian sources, such as employment or business operations within the country.
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