The Federal Executive Council (FEC) has introduced significant proposals aimed at enhancing the National Identity Management Commission Act No. 23 of 2007. This amendment will allow for the issuance of National Identification Numbers (NIN) to foreigners residing in Nigeria. The proposed changes are part of a broader effort to implement NIN taxation for foreigners, ensuring that all individuals living and working in the country are properly identified and taxed.
On Wednesday, alongside the amendment to the NIMC Act, the FEC also presented the Economy Stabilisation Bill. This bill is designed to facilitate the taxation of foreigners who earn income in Nigeria, further expanding the government’s revenue base. The new legislation seeks to broaden the definition of registrable individuals to include foreign nationals with a taxable presence in Nigeria, thereby making NIN mandatory for tax-related transactions.
A key aspect of this proposed legislation includes a new addition to Section 16, which states that any person, regardless of their citizenship, who is considered a resident or is subject to tax under existing Nigerian laws, will be required to register for a National Identification Number. If these proposals are enacted into law, expatriates and immigrants who generate income in Nigeria will be subject to taxation, aligning them with local tax regulations.
Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, addressed reporters at the Aso Rock Villa in Abuja. He emphasized that the National Assembly’s approval of the bill would lead to mandatory registration for all residents, including foreigners. Onanuga stated, “Once you start working and earning an income in Nigeria, you will be assigned an NIN, which will serve as your tax identity.”
In addition to these proposals, Onanuga announced plans to amend the Nigerian Maritime Administration and Safety Agency Act No. 17 of 2007. This amendment will allow for the payment of fees and charges in Naira, promoting a more straightforward process for businesses operating in the maritime sector. Previously, agencies charged fees in dollars, but the government now aims to strengthen the use of the Naira, stating, “Everything doesn’t have to be in dollars.”
Overall, these legislative efforts signify the government’s commitment to a more organized tax system and the recognition of foreign residents’ contributions to the Nigerian economy through NIN and taxation for foreigners.