The Federal Executive Council has put forward a proposal to amend the National Identity Management Commission Act No. 23 of 2007, with the goal of allowing foreigners living in Nigeria to obtain the National Identification Number.
This proposed legislative change comes alongside the introduction of an Economy Stabilisation Bill, which seeks to implement taxation for foreign residents earning income within Nigeria.
According to The PUNCH, the legislative reform announced on Wednesday aims to broaden the scope of those required to register for NIN by including foreign individuals who have taxable income or presence in Nigeria.
The proposed changes would also mandate the use of NIN for transactions relevant to tax administration and other related matters.
A key addition to Section 16 of the NIMC Act is the inclusion of a new paragraph, 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.” This change, if enacted, would mean expatriates and other income-earning foreign nationals would be subject to Nigeria’s tax laws.
The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, disclosed these details while briefing State House correspondents at the Presidential Villa in Abuja.
He explained the implications of the new bills, saying, “If the National Assembly passes that bill, it provides that everybody living in Nigeria, including foreigners, will now be registered and given NIN.”
Onanuga further elaborated, “Once you are doing some work here and earning income, you will be registered and given an NIN so that you can be taxed. Your NIN will give you your tax identity, and you can also be taxed and come under our tax structure. The law that set up the NIMC initially precludes foreigners from being registered.”
The amendments aim to streamline the inclusion of foreign workers within the Nigerian tax system.
In addition to these proposed amendments, the FEC introduced a third bill to revise the Nigerian Maritime Administration and Safety Agency (NIMASA) Act No. 17 of 2007.
The amendment would allow for the payment of fees and charges to NIMASA in naira rather than foreign currency, a move intended to support the use of the national currency in business transactions.
The proposed changes to Section 15 add a new subsection (2), which reads: “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 emphasized the significance of this change, explaining, “Hitherto, these agencies were charging in dollars, but now they can always collect it in Naira. This government wants to put a lot of emphasis on our national currency instead of everything being dollarised in our economy. The government is now saying, ‘pay in Naira. Everything doesn’t have to be in dollars.’”
These proposals reflect a broader effort by the government to streamline tax administration and promote the use of Nigeria’s currency in both domestic and international dealings, reinforcing the importance of naira in business transactions across various sectors.
