What Nigeria’s New Tax Law Means for Freelancers and Remote Workers

In June 2025, Nigeria’s President signed four major tax reform bills into law—the most significant update to the country’s tax system in decades. If you're a freelancer, remote worker, or digital professional earning in foreign currency, this reform has your name on it.

From clearer tax rules to stricter enforcement, here's what the new law means for you and how Geegpay can help you stay compliant while keeping more of your earnings.

So, What Changed?

The government introduced four key bills:

• Nigeria Tax Act: Merges over 50 different tax laws into one code, making it easier to understand and comply with.
  
  
• Tax Administration Act: Standardises how taxes are collected across federal, state, and local governments.
  
  
• Nigeria Revenue Service (NRS) Act: Replaces FIRS with a more independent, digital-first body focused on efficiency and transparency.
  
  
• Joint Revenue Board Act: Establishes coordination between tax authorities and introduces new tools for dispute resolution, including a Tax Appeal Tribunal and Tax Ombudsman.
  
  

The goal is a simpler, unified, and more enforceable tax structure that’s easier to navigate for both individuals and businesses.

How Does This Affect Freelancers and Remote Workers?

If you're working remotely from Nigeria and earning in USD, GBP, or EUR from clients or companies abroad through platforms like Geegpay, Payoneer, or Wise, this law directly applies to you.

The new law requires that:

• You register with your state tax authority
• Declare your foreign earnings in naira
• Pay personal income tax based on your total earnings
  

This is a shift from the more informal system many freelancers were used to. The government is now prioritising transparency and digital tracking. Since most foreign inflows are linked to Nigerian bank accounts or BVNs, your income is already visible to tax authorities. And with new global tax compliance treaties, even your clients or employers abroad may report what they pay you.

Still, the reforms come with some important reliefs.

Key Tax Adjustments You Should Know

The tax system has become more progressive, especially for solo earners:

• The first ₦800,000 of your annual income is now tax-free, thanks to a newly introduced tax-exempt threshold.
• Income above ₦800,000 will be taxed based on progressive bands, with rates ranging from 15% to 25% depending on how much you earn in total:

First ₦800,000 - 0%

Next ₦2.2 million - 15%

Next ₦9 million - 18%

Next ₦13 million - 21%

Next ₦25 million - 23%

Anything above ₦50 million - 25%

• These new tax bands mean many low to mid-income earners will see a reduced tax burden compared to previous rules.
• If you receive a severance or termination package, the first ₦50 million is now completely tax-free, giving you more breathing room during transitions.

And if you run a registered small business that makes under ₦50 million a year, you no longer need to pay Company Income Tax (CIT).

What You Should Do Before 2026

It's expected that this law will take effect by January 1, 2026. Now is the time to get your house in order.

• Track your income: Use Geegpay to monitor what you earn in foreign currencies. On the Geegpay dashboard you can get a full transaction history and real-time balance across USD, GBP, EUR, and NGN accounts. This makes it easy for you to download and share with an accountant or tax consultant.
  
  
• Convert earnings to naira: Under the new law, your taxable income must be calculated using the official exchange rate published by the Central Bank of Nigeria (CBN). So understanding what your annual income looks like in naira, since your tax will be calculated on that basis, will help. Geegpay sends rate updates regularly to help you stay on top of this. 

• Set aside money for tax: Even if you’re not liable yet, planning ahead protects you from future surprises.
  

It’s also a good idea to speak with a certified tax professional before 2026 rolls around.

How Geegpay Helps You Keep More of What You Earn

As tax enforcement tightens, every naira matters. Here’s how Geegpay can support you on your freelance journey:

• Free conversion to naira: Geegpay lets you convert your foreign earnings easily on the platform at no extra cost, so more of your money stays with you.
  
  
• Zero withdrawal fees: Transfer funds to your Nigerian bank account from Geegpay without paying anything extra.
  
  
• Competitive exchange rates: Geegpay offers competitive exchange rates so you get more naira value for your dollars, pounds, or euros.
  
  
• Multi-currency accounts: Receive payments directly from clients, employers, or freelancing platforms with a USD, GBP, and EUR bank account in your name.
  
  
• Invoicing tools: Easily send professional invoices to international clients and track when they pay.
  
  
• Transparent, low transaction fees: Our pricing is clear and fair. See how much you pay for your international transactions.
  
  

In short: while others take a bigger cut of your income, Geegpay helps you save more, even before taxes kick in.

Final Thoughts

Nigeria’s new tax laws are designed to simplify compliance and expand the country’s tax net and yes, that includes freelancers and remote workers. While the shift may feel overwhelming, the good news is that you have time to prepare and tools to help you get there.

Geegpay makes it easy to track, manage, and withdraw your earnings without eating into your income. As 2026 approaches, we’ll keep sharing updates and resources to help you stay informed.

Ready to take control of your income? Create your free Geegpay account today.