Remote work is booming in Nigeria. But now, the government wants its share. A new tax framework signed by President Bola Tinubu in June 2025 means Nigerians working for foreign companies or freelancing online will pay up to 23% in taxes on their global income.
Here’s what that means for you.
Who Has to Pay?
- Remote employees: If you work for a foreign company while living in Nigeria, you must file your taxes yourself. Employers abroad won’t deduct Nigerian taxes for you.
- Freelancers and contractors: If you earn from platforms like Upwork, Fiverr, or direct clients overseas, you’re considered self-employed. You’ll pay taxes like a small business owner.
Read: What Withholding Tax in Nigeria Means for You
How Much Will You Pay?
Nigeria uses a progressive tax system called Personal Income Tax (PIT).
- Income up to ₦800,000 → no tax.
- Income between ₦800,000 and ₦50 million → rates rise gradually.
- Income above ₦50 million → taxed at 25%.
Most middle-class remote workers will see an effective rate of about 20–23%.
Checkout: Tax Calculator in Nigeria
What Counts as Taxable Income?
All worldwide earnings are taxable if you live in Nigeria for more than 183 days a year. This includes:
- Salaries from foreign companies.
- Freelance payments in dollars, pounds, or euros.
- Income from global digital platforms.
Can You Deduct Expenses?
Yes, freelancers can reduce taxable income by deducting business expenses such as:
- Internet and data costs.
- Software subscriptions.
- Office equipment.
But you’ll need to keep proper records. Without them, tax authorities may estimate your earnings, and the bill could be higher.
What Happens If You Don’t Pay?
Failure to register and file returns can lead to penalties and interest charges. Some states, like Lagos, are already exploring ways to automatically deduct taxes from foreign inflows to make compliance unavoidable.
Bottom Line
If you’re working online from Nigeria, whether coding for a U.S. firm, designing for a UK client, or freelancing worldwide, expect to pay Nigerian taxes on that income.
Key takeaway: Register with your state tax office, keep your income records clean, and budget for up to 23% in taxes.