Nigeria’s New Tax Law Is Forcing Remote Workers To Get Clever (Or Pay Dearly)

Consider Chidi, a Lagos-based backend engineer who landed a remote job with a San Francisco-based AI startup. He earns a competitive USD 6.5 K monthly, a sum that places him firmly in the top tax bracket under Nigeria’s new tax regime. For the last two years, Chidi operated in the informal economy, receiving payments through freelance platforms and enjoying the full weight of his earnings.

But under the Nigeria Tax Act 2025, which took effect this year, that era is over. As a tax resident, spending more than 180 days a year in Lagos, Chidi’s worldwide income is now fully taxable in Nigeria.

With annual earnings exceeding NGN 50 M, he falls into the 25% tax bracket. Without restructuring how he works, Chidi faces a potential annual tax liability of around NGN 26 M (USD 17.5 K). That is more than four months of his gross income, gone.

The frustration is compounded by what the tax man doesn’t see. Chidi pays for his own high-speed Starlink subscription, monthly electri...