FEC Proposes Taxation, NIN for Foreign Residents in Nigeria

The Federal Executive Council (FEC) is looking to amend the National Identity Management Commission Act No. 23, 2007, to enable the issuance of National Identification Numbers (NIN) to foreign residents in Nigeria.

On Wednesday, the FEC also introduced the Economy Stabilisation Bill, which aims to facilitate the taxation of foreigners living and working in Nigeria.

These proposed changes seek to “broaden the range of registrable individuals to encompass foreign residents with taxable income in Nigeria and establish the compulsory use of NIN for tax-related transactions and other matters.”

The government intends to add a new clause to Section 16, stating, “Any individual, regardless of Nigerian citizenship, who is considered a resident or is otherwise subject to taxation in Nigeria under any applicable law.”

If enacted, this legislation would subject expatriates and income-generating immigrants to taxation.

Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, shared these updates with reporters at the Aso Rock Villa in Abuja.

Onanuga explained, “Should the National Assembly approve this bill, it mandates that everyone residing in Nigeria, including foreigners, must be registered and assigned an NIN.

“Once you work and earn income here, you will receive an NIN, allowing you to be taxed.

“Your NIN will serve as your tax identity, integrating you into our tax system. The original law establishing the NIMC prohibited the registration of foreigners.”

Additionally, the presidential adviser announced a third bill aimed at amending the Nigerian Maritime Administration and Safety Agency Act No. 17, 2007, to allow for payments of fees and charges in naira, enhancing the ease of doing business.

This amendment updates Section 15 with a new subsection (2), stating, “All fees, charges, levies, fines, and other payments owed to the Agency under this Act may be made in naira at the applicable official exchange rate.”

Onanuga clarified, “Previously, these agencies required payments in dollars, but now they can accept payments in naira. The government aims to emphasize the use of our national currency rather than relying solely on the dollar in our economy. The message is clear: ‘Pay in naira; not everything needs to be in dollars.’”