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This guide is general information about personal income tax in Nigeria for people who live there and work remotely for employers or clients abroad. It isn't tax advice. Nigeria's tax laws were rewritten in 2025 and the new rules apply from 1 January 2026, so practice is still settling. Check the official texts linked at the end and talk to a registered tax adviser about your own case.
What changed in 2026
Two new laws now set the rules for most people:
- The Nigeria Tax Act, 2025 says what's taxed and at what rate. The gazetted text gives its commencement as 1 January 2026. It replaced older laws, including the Personal Income Tax Act that state tax offices used to cite.
- The Nigeria Tax Administration Act, 2025 sets out registration, returns and who collects which tax.
The federal tax agency is now the Nigeria Revenue Service (NRS), which took over from FIRS. For most individuals, though, the office that matters is your state's internal revenue service. More on that below.
Is income from abroad taxed?
If you're resident in Nigeria, yes. Section 12 of the Nigeria Tax Act says a resident individual's income is treated as arising in Nigeria and is taxable wherever it arises, whether or not it's brought into or received in Nigeria. Section 13 adds that employment income counts as derived from Nigeria when the employee is resident.
The Act treats you as a resident individual in a year of assessment if any of these apply:
- you're domiciled in Nigeria
- you have a permanent place available for your domestic use in Nigeria
- you have a place of habitual abode in Nigeria
- you have substantial economic and immediate family ties in Nigeria
- you spend 183 days or more in Nigeria in a 12-month period, including annual leave and temporary absences
- you serve as a Nigerian diplomat abroad
So if you live in Lagos and work for a company in Berlin, the salary or contract fees are in scope, even if the money sits in a foreign account.
Who collects: your state
Under the Nigeria Tax Administration Act, the tax authority of each state, or of the Federal Capital Territory, administers income tax for resident individuals. The Lagos State Internal Revenue Service (LIRS) puts it simply in its FAQ: residents file their annual returns with the internal revenue service of the state where they live.
If no employer deducts PAYE from your pay, which is normal when you work for a company abroad, you pay through direct assessment. LIRS describes direct assessment as the annual tax for self-employed individuals and professionals, and its tax types page says the return is due on or before 31 March each year. Lagos residents file on the LIRS eTax portal. Other states run their own offices and portals, so check yours.
Rates and deductions
The Fourth Schedule of the Nigeria Tax Act sets these rates on taxable income, after eligible deductions:
| Taxable income (naira a year) | Rate |
|---|---|
| First 800,000 | 0% |
| Next 2,200,000 | 15% |
| Next 9,000,000 | 18% |
| Next 13,000,000 | 21% |
| Next 25,000,000 | 23% |
| Above 50,000,000 | 25% |
Section 30 lists the eligible deductions. They include your contributions to the National Housing Fund, national health insurance and a pension under the Pension Reform Act, interest on a loan for an owner-occupied home, certain life insurance premiums, and rent relief of 20% of annual rent paid, capped at 500,000 naira. You have to claim deductions and be able to prove them, so keep receipts and tenancy papers.
Get your Tax ID
Nigeria now uses a single Tax ID for individuals. The official portal says it's issued jointly by the NRS and the Joint Revenue Board, and you can retrieve it on the portal with your NIN, using the phone number you registered with NIMC. If you don't know your NIN, the portal says you can get it by dialling *346# from that number. The portal also says that since 1 January 2026 a valid Tax ID has been needed for many public and private services, including banking, employment paperwork and statutory filings.
LIRS's FAQ notes that it creates a payer ID when you register on its eTax portal. Use the same details everywhere so your records match.
Filing your yearly return
Section 13 of the Nigeria Tax Administration Act says every taxable person must file a return of income each year, without waiting for a notice or demand, whether or not they owe tax. The return includes:
- a completed self-assessment form
- your income from every source for the year before the year of assessment
- your reliefs and tax computation
- for business or professional income, audited accounts or a statement of accounts you attest to
- evidence that you paid the tax due
For a remote contractor, a simple statement of accounts can be a spreadsheet of invoices received and business costs, backed by bank statements. Keep contracts and payment confirmations for every client.
Tax paid abroad, and when to get help
If a foreign client or employer withheld tax, section 120 of the Nigeria Tax Act allows a credit for tax paid in the source country on income that's also taxed in Nigeria. The credit is the lower of the Nigerian tax on that income and the foreign tax paid. Double taxation agreements can change this, so ask before you claim.
See a registered tax adviser if you:
- earn from several foreign clients or mix salary and contract income
- had tax withheld abroad
- moved into or out of Nigeria during the year
- aren't sure which state you should file in
Related reading: getting paid from abroad, contractor or employee, and remote jobs open to people in Nigeria.
