Nigeria’s 2026 Tax Reform Sparks Privacy Fears as FG Plans Digital Tracking of Remote Workers’ Income

Nigeria’s sweeping tax reform scheduled for January 2026 is stirring nationwide concern as questions grow over how much personal financial data the government plans to access in its bid to widen the tax net. While the reform package aims to modernize revenue collection through digital systems, many Nigerians—especially remote workers and those with foreign income—fear the measures could open the door to excessive surveillance.

The new policy framework, signed into law in June 2025, consolidates four major tax laws, laying the foundation for a more unified and technology-driven tax administration. Government officials, including Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, argue that Nigeria must keep pace with global tax standards. Through international data-sharing partnerships such as the Common Reporting Standards (CRS), Nigeria already receives financial information on residents’ foreign accounts. Authorities insist this access will help curb tax evasion and improve compliance.

But legal analysts say the reform, as it stands, raises serious ethical and privacy questions. Abuja-based lawyer Ayomide Ahmed warns that collecting sensitive personal information—such as income records, foreign assets, and location data—without consent could violate both local privacy laws and global data-protection norms. He notes that while identifiers like BVN and NIN may be accessible under current regulations, financial histories and other deeply personal data require explicit approval from citizens. Anything less, he argues, risks undermining trust.

Members of the Nigerian diaspora are equally unsettled. UK-based tech entrepreneur Wale Ameen says the biggest challenge is not taxation itself but the government’s lack of clarity. He fears that if digital tracking extends into GPS and location monitoring tools, it could cross a boundary Nigerians are not prepared for. Others, like U.S.-based lawyer Barrister Tola, stress the importance of transparency—arguing that no government should access personal data without first informing the affected individuals.

Economists also caution that public acceptance will depend on how responsibly tax revenue is managed. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, notes that many Nigerians already pay privately for services the government should provide—such as education, healthcare, transportation, and agricultural support. Without clear disclosure on how tax revenue is used, he warns, attempts to monitor global income may meet resistance. Meanwhile, Oyedele has clarified that Nigerians abroad are not required to obtain a Tax Identification Number or file returns unless they earn income from within Nigeria.

source: nairametrics