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The Nigerian government has announced that Nigerians living abroad will enjoy significant tax breaks and investment incentives under its ongoing fiscal policy and tax reforms.
The reforms, designed to encourage investment and economic participation, will officially take effect in January 2026.
Mr Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, spoke during a virtual session with Dr Abike Dabiri-Erewa, Chairperson of the Nigerians in Diaspora Commission (NiDCOM).
The meeting, held for Nigerians worldwide, aimed to clarify the reforms and address misinformation circulating about their potential impact on the diaspora communities.
“The reforms are investor-friendly, protective, and focused on growth. They include exemptions and reductions in withholding tax rates, higher thresholds for small businesses, the elimination of taxes on investments and capital, and a rationalisation of incentives,” Oyedele explained.
He also noted that VAT burdens will be reduced and structural fiscal challenges addressed.
Dr Dabiri-Erewa emphasised that the Diaspora is a key contributor to national development and should be fully informed about the fiscal measures that could affect them.
She praised the government’s approach to ensuring transparent communication and engagement with Nigerians abroad.
Participants raised concerns regarding remittances, double taxation treaties, non-resident taxation, and implications for income from investments, property, and small businesses.
Oyedele reassured the Diaspora that remittances and investments will not be taxed, reinforcing Nigeria’s position as an attractive destination for business and investment.
The interactive session provided an opportunity for direct dialogue between policymakers and Nigerians abroad, ensuring clarity and trust.
The reforms are expected to enhance trade surpluses, stabilise the balance of payments, and harmonise collective taxes and levies, ultimately strengthening Nigeria’s economic resilience while promoting Diaspora engagement.
