Nigerians Abroad: Do You Still Need to Pay Tax in Nigeria?

Many Nigerians living abroad often ask the same question: “Do I still need to pay tax in Nigeria even though I live and work outside the country?”

The answer depends on your residency, income source, and business ties to Nigeria.

Below is a simple breakdown to help you understand how it works.

Tax in Nigeria Is Based on Residency, Not Nationality

Nigeria does not tax you just because you are Nigerian.

You are taxed based on where you reside for at least 183 days in a year.

You may NOT pay tax in Nigeria if:

• You live abroad full-time.

• You spend less than 183 days in Nigeria in a year.

• You earn all your income abroad.

• You pay tax in the country where you now live.

In that case, you are considered a non-resident for tax purposes.

When Nigerians Abroad MUST Pay Tax in Nigeria

Even if you live abroad, you may still be required to pay tax in Nigeria if:

You Earn Income From Nigeria

Examples:

• Rental income from property in Nigeria

• Profit from a business operating in Nigeria

• Income from short-term consulting done for Nigerian companies

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• Dividends from Nigerian companies

• Royalties from Nigeria

Nigeria will tax you on any income generated within Nigeria, even as a non-resident.

Do You Pay Tax in Two Countries? (Double Taxation Issue)

Many Nigerians fear this.

However, Nigeria has Double Taxation Agreements (DTAs) with some countries, such as:

• UK

• Canada

• France

• South Africa

• The Netherlands

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• China

• Belgium

• Pakistan

This means if you pay tax in those countries, Nigeria will not tax you twice on the same income.

You only need to provide proof of tax payment abroad.

Diaspora Nigerians Who Still Have Businesses in Nigeria

If you own:

• A company in Nigeria

• Real estate that generates rent

• Shares in Nigerian companies

• A Nigerian online business

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Then your business must remain tax-compliant even if you personally live abroad.

Company taxes (CIT), VAT filings, and PAYE for employees will still apply.

What If You Send Money Home?

Money transfers (remittances) from abroad are not taxed in Nigeria.

Only income earned in Nigeria, not money you send home, is taxable.

What of Nigerians Studying Abroad?

If you are:

• A student, and

• Not earning income in Nigeria, and

• Spend less than 183 days in Nigeria

Then you do not pay tax in Nigeria.

Summary: Do You Still Need to Pay Tax in Nigeria?

Here’s the simple rule:

• If the income is earned abroad → No tax in Nigeria.
• If the income is earned in Nigeria → You must pay tax.

Your nationality does not matter your income source and residency do.