Nigeria’s sweeping new tax framework that is set to take effect in January 2026 is igniting intense debate over how much access government agencies should have to citizens’ personal financial data as part of an aggressive effort to expand the tax base.
The reforms, signed into law on June 26, 2025, consolidate four major pieces of legislation: the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025. Together, they form the most ambitious tax modernization agenda in Nigeria’s recent history.
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But the loudest public backlash has centered on digital surveillance, specifically the government’s ability to track the income of remote workers and Nigerians with foreign assets.
Government Expands Access to Global Financial Data
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has attempted to calm public anxiety, noting that Nigeria already receives extensive financial data from abroad through the Common Reporting Standards (CRS). More than 100 jurisdictions automatically share information on accounts held by Nigerian residents.
Oyedele explained that such cross-border transparency is critical to combating tax evasion. Nigerians who fail to voluntarily disclose their foreign income, he warned, may later face presumptive tax assessments based on data the government already possesses.
Experts Warn of Legal and Ethical Pitfalls
Privacy advocates argue the reforms may overstep legal and ethical boundaries if implemented without clear safeguards.
Abuja-based lawyer Ayomide Ahmed cautioned that accessing sensitive personal information such as income history, foreign asset records, and location data typically requires explicit consent.
According to him, while identifiers like BVN or NIN can be legally obtained, the sweeping scale of Nigeria’s data-collection ambitions risks turning lawful access into covert surveillance.
“If you start going behind the backs of the owners of these personal data, there is a form of ethical violation,” Ahmed said, stressing that collecting sensitive data without consent could amount to a breach of privacy.
Diaspora Nigerians Raise Alarm Over Data Tracking
The reforms are also causing confusion among Nigerians abroad. UK-based tech entrepreneur Wale Ameen said the government has not clearly defined the scope of surveillance.
He warned that if tax enforcement escalates to location tracking or GPS-based monitoring, “then there are issues,” noting that many Nigerians abroad remain unsure whether the rules apply to them.
Ameen added that trust remains Nigeria’s greatest challenge: citizens want to see tax revenues translated into improved healthcare, infrastructure, and basic services—unlike what they experience today.
Economists Push for Transparency and Better Governance
Economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, who spoke to Fintechinsights, said taxing global income is common worldwide, but cautioned that Nigerian households already pay heavily out-of-pocket for services the state fails to provide.
He argued that without stronger fiscal transparency and consistent public service delivery, efforts to widen tax collection will face resistance.
“There has to be full disclosure as to how much is being earned from these taxes and what it is being spent on,” he noted.
Clarification for Nigerians Abroad
Recall that Oyedele clarified that Nigerians living overseas are not required to obtain a Tax Identification Number (TIN) or file tax returns in Nigeria unless they earn income from Nigerian sources.
This means diaspora residents working solely for foreign employers are not automatically pulled into the Nigerian tax net contrary to widespread fears.
Nigeria’s 2026 tax reform marks a major shift toward digital enforcement and global information sharing. But without transparency, safeguards, and clear communication, analysts warn the reforms risk triggering deeper public mistrust rather than strengthening the tax system.
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