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Nigeria’s Tax Reform Sparks Privacy Concerns: Is Government Overreach a Threat?

Nigeria’s new tax framework, set to take effect in January 2026, has sparked a heated debate about the government’s access to citizens’ personal financial information. The reforms aim to boost revenue and expand the tax net, but the proposed methods of data collection have raised red flags among privacy advocates and remote-work professionals.

The government’s plan to track the income of remote workers and Nigerians with foreign assets has sparked concerns about data privacy and surveillance. While the government argues that it is seeking to curb tax evasion, critics claim that the approach could violate citizens’ rights if not handled with transparency.

The new laws, which include the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025, grant the government expanded access to global financial data. However, legal experts warn that collecting sensitive personal data without consent risks crossing ethical and legal boundaries.

“Nigerians abroad are confused and worried about the implications of the tax reform,” said Wale Ameen, a Nigerian tech entrepreneur and CEO of Cush, who is a resident of the UK. “The issue is not really about taxation, but about the end product. People want to see where their money is going and what it is being used for.”

Economists have also called for transparency and public confidence in the government’s tax collection efforts. “There has to be full fiscal disclosure as to how much they are earning from these taxes and what they are spending it on,” said Dr. Muda Yusuf, CEO of Centre for the Promotion of Private Enterprise (CPPE).

The government has clarified that Nigerians abroad are not obligated to obtain a Tax Identification Number (TIN) or file annual tax returns in Nigeria unless they earn income from Nigerian sources. However, the debate highlights the need for greater transparency and public trust in the government’s tax collection efforts.

As Nigeria embarks on this ambitious tax reform, it is crucial that the government balances its revenue goals with citizens’ right to privacy and transparency. The success of the reforms depends on public confidence and trust, which can only be achieved through clear communication and accountability.

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