Nigeria to Impose 20% Tax on Foreign Workers’ Income from 2026

Nigeria to Impose 20% Tax on Foreign Workers’ Income from 2026
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Nigeria will begin enforcing a 20 percent personal income tax on foreigners earning more than ₦800,000 ($521) annually, starting January 1, 2026, following amendments to the Personal Income Tax Act (PITA) 2011, media outlets reported. The Federal Inland Revenue Service (FIRS) said the levy will not be a flat charge but a progressive rate, with tax brackets determining individual obligations.

Workers earning up to ₦800,000 will remain exempt. The measure is expected to affect expatriates, Nigerian remote workers with foreign clients, and those in the digital economy, including influencers, crypto traders, landlords, property dealers, and entertainers. Diplomatic staff, however, will be exempt under the Vienna Convention.

Kenyan professionals in Nigeria could feel the impact, as diaspora remittances from Nigeria to Kenya totaled $7.2 million in 2024, the highest in three years. Tax experts noted that expatriates may offset their Nigerian tax payments with credits in their home countries, such as Kenya.

Authorities said the reform aligns Nigeria with global trends in protecting local employment. Similar measures have been adopted in Tanzania, which restricted foreigners from small-scale businesses, sparking protests from Kenya. Analysts warn the Nigerian policy could reduce diaspora remittances in future reporting periods.