Nigeria Boosts Tax System, Targets Freelancers and Digital Creators by 2026
Nigeria is bolstering its tax system, with a focus on growing revenues and integrating freelancers and digital creators. By 2026, the country aims to collect at least ₦17.85 trillion ($12.18 billion) in taxes, with technology playing a pivotal role.
Starting January 2026, remote workers and freelancers in Nigeria will be required to pay personal income tax. The Federal Inland Revenue Service (FIRS) will enforce this, using a system of data validation and information exchange with over 100 countries. The tax rate for these individuals will be capped at 25%.
To ensure compliance, the FIRS plans to link its database with other agencies for real-time intelligence gathering. It will also collaborate with global platforms like Google and Meta to identify payments made to Nigerians. Failure to self-declare income may result in penalties ranging from ₦50,000 ($34.11) to ₦1 million ($682.28) or imprisonment. The government aims to increase its tax-to-GDP ratio to 18% by 2027, with freelancers and influencers being a significant part of this plan. Taxpayers can use platforms like TaxPro Max to register, file, pay, and download tax clearance certificates online.
Nigeria's tax reforms aim to integrate freelancers and digital creators into the tax system, with strict enforcement measures in place. The country seeks to boost its tax revenues and improve its tax-to-GDP ratio by 2027.
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