FG Proposes NIN Registration And Taxation For Foreigners

The Federal Executive Council (FEC) has proposed amendments to the National Identity Management Commission (NIMC) Act No. 23, 2007 to allow foreigners residing in Nigeria to be issued a National Identification Number (NIN). This proposal, presented on Wednesday, also includes the introduction of the Economy Stabilisation Bill, aimed at facilitating the taxation of foreigners living and working in Nigeria.

The two legislative proposals seek to expand the scope of individuals eligible for NIN registration, including foreigners with taxable income or a taxable presence in Nigeria. The amendments will also make the use of NIN mandatory for transactions relevant to tax administration.

One significant proposed change is a new paragraph to Section 16, which states: “Any person, whether or not he is a citizen of Nigeria, who is deemed to be resident or otherwise subject to tax in Nigeria under any legislation in force in Nigeria.” If this bill is passed into law, expatriates and income-earning immigrants will become subject to taxation.

Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced during a press briefing at Aso Rock Villa, Abuja. He explained that once the National Assembly passes the bill, all residents, including foreigners, will be required to register for an NIN. This identification number will also serve as a tax identity, bringing all income earners under Nigeria’s tax structure. Under the current NIMC Act, foreigners are precluded from being registered for an NIN.

Additionally, a third bill seeks to amend the Nigerian Maritime Administration and Safety Agency (NIMASA) Act No. 17, 2007. The amendment aims to ease business processes by allowing fees, charges, and other payments to be made in Naira rather than foreign currency, particularly the U.S. dollar. The proposed change to Section 15 introduces a subsection specifying that “All fees, charges, levies, fines, and other monies accruing and payable to the Agency under this Act may be paid in Naira at the applicable official exchange rate.”

Onanuga explained that this move is part of the government’s efforts to reduce dollarisation in the Nigerian economy, emphasizing the use of the national currency, Naira, in transactions with federal agencies.