FG Moves to Issue National IDs and Impose Taxes on Foreigners in Nigeria

[keypoints]

• The Nigerian federal government is proposing to issue National Identification Numbers (NIN) to foreigners as part of amendments to the National Identity Management Commission (NIMC) Act, aimed at including non-Nigerians with taxable income in the country.
• The Economy Stabilisation Bill seeks to impose taxes on foreigners living and working in Nigeria, requiring them to register for NIN, which will serve as their tax identification number upon National Assembly approval.
• The Special Adviser to the President, Bayo Onanuga, stated that all residents, including foreigners, will be required to register for a NIN to ensure compliance with the country’s tax structure and enable the taxation of expatriates and income-earning immigrants.

[/keypoints]

FG Moves to Issue National IDs and Impose Taxes on Foreigners in Nigeria

The federal government of Nigeria is proposing the issuance of National Identification Numbers (NIN) to foreigners residing in the country, following an amendment to the National Identity Management Commission (NIMC) Act of 2007.

This initiative is part of a broader legislative effort aimed at expanding the scope of registration to include non-Nigerians who have taxable income or a presence in Nigeria.

The Federal Executive Council (FEC) is seeking to implement taxes on foreigners living and working in the country through the introduction of the Economy Stabilisation Bill.

The proposed legislation aims to ensure that non-Nigerians earning income in Nigeria are registered in the NIN system and taxed accordingly.

A new paragraph is set to be added to Section 16 of the NIMC Act, which states: “Any person, whether or not he is a citizen of Nigeria, who is deemed to be resident or otherwise subject to tax in Nigeria under any legislation in force in Nigeria.”

This amendment means that expatriates and other income-earning immigrants will be subject to taxation under the new law once it is passed.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, elaborated on the proposed changes during a briefing at the presidential villa in Abuja.

He indicated that all residents, including foreigners, will be required to register for a NIN, which will serve as their tax identification number, contingent upon the National Assembly’s approval of the bill.

Onanuga stated, “If the National Assembly passes that bill, it provides that everybody living in Nigeria, including foreigners, will now be registered and given NIN. Once you are doing some work here and earning income, you will be registered and given an NIN so that you can be taxed. Your NIN will give you your tax identity, and you can also be taxed and come under our tax structure. The law that set up the NIMC initially precludes foreigners from being registered.”