Nigeria says it will impose a tax charge of 20 percent on foreigners earning above ₦ 800,000 ($521), the result of an amended law on personal income tax (PIT).

The new policy kicks in from January 1, 2026, after the grace period provided by the amendment on the Personal Income Tax Act (PITA) 2011 enacted in June.

Some African countries with significant expatriates in Nigeria could be affected. Official diaspora remittances report in Kenya says Kenyans working in Nigeria sent back home $7,214,000 in 2024. This is the highest since 2021, when they sent back $8,002,000 – using the current exchange rate.

According to the 2024 report, Tanzania tops as Kenya’s source of diaspora remittances with $75,618,000, followed by Uganda at $64,849,000, and South Africa as $23,849,090.

Officials in Nigeria say the 20 percent will not be a flat rate but a progressive rate, allowing the Federal Inland Revenue Service (FIRS) to tax individuals based on tax brackets.

Robert Waruiru, a partner at Ichiban Tax & Business Advisory Llp, said that these changes, align various tax laws, including subjecting income tax on incomes for foreigners with close ties with Nigeria.“Typically, non-residents are only taxed on Nigeria-sourced income. Therefore, expats will pay tax on Nigerian-sourced income. To the extent that a Kenyan expat working in Nigeria pays this tax, they can claim a unilateral tax credit from Kenya Revenue Authority when filing tax returns in Kenya,” Waruiru explained.

Workers earning up to ₦800,000 are exempt from PIT.

The other people who will be affected include Nigerian remote workers making money from abroad, anyone outside Nigeria making money from Nigeria, the digital economy, influencers, crypto traders, landlords earning rental income, property dealers, service providers (barbers, photographers) and entertainers and musicians.

Diplomatic workers will equally be exempted from PIT, shielded by the Vienna Convention on Diplomatic Relations. The knock-on effect will be that diaspora remittances from Nigeria may take a hit in the 2026 reporting period.

Nigeria’s decision follows a pattern of protective policies by some countries around the world, seeking to protect jobs and opportunities for local people. Tanzania recently cut out foreigners from doing small businesses such as salons or tour guiding, saying the move will protect opportunities for locals. The country’s Industry and Trade Ministry said many of the small traders had entered the country as largescale investors only to become petty traders.

Kenya, which had a significant number of diaspora in Tanzania, protested the new policy, arguing it violated the principles under which the East African Community is established.

For Kenya, however, the broader crackdown by countries seeking to protect local jobs means the biggest forex earner could be cut in the next year.

US President Donald Trump cracked the whip on foreign workers, imposing a charge on remittances as well as altering employment visas for foreign staffers in the US.

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